Equipment Financing Canada

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What You Need To Know to Obtain Proper Lease Financing in Canada

Information on equipment financing in Canada. Financing assets properly is a key success factor in growing and operating your business

Clients always ask what they need to know or to provide in order to obtain solid lease financing for their Equipment Financing approvals in Canada. The entire lease financing process works best when you view it in a positive manner – it’s very much a consultative process with your leasing partner or leasing advisor. Because lease financing in Canada is such a broad industry representing the needs of all equipment acquisition financing in the country we strongly recommend to clients that they utilize the services of a trusted and credible advisor in this area.



Equipment Financing in Canada requires input from yourself in the following areas – credit, lease structuring, accounting, and of course the type of lease you wish to enter into. The majority of businesses in Canada, small and large, utilize lease financing for their equipment and capital expenditure financing needs.


In order to position your company properly you should be prepared to share the following information:


-Who is the Lessee? Depending on the size of the transaction you will be required to provide financial disclosure. Many leases in Canada under, say, $ 50,000.00 can actually be approved without financial statement disclosure. Approvals are often done automatically in a day or so, sometimes in hours, based on your firms rating and payment experience in Credit Bureaus and Dun and Bradstreet databases.

We would point out that if rate and payment is very important to yourself you might want to consider disclosing financial results even if they weren’t required, as that can sometimes get you a better rate. Naturally the other basic information required is similar to any type of business financing application – i.e. who owns your firm, what vendor are you buying the equipment from, etc.


Equipment – Clearly you want to position the asset you are acquiring as useful assets that will help you generate revenue and profits. A ‘buzz word ‘in leasing is often ‘profits through use, not ownership’, and that’s a great thing to remember. Many leasing companies will validate that the equipment you are acquiring is from a valid vendor or manufacturer.

Private sales from third parties are more difficult to finance – although we can also point out here that equipment financing in Canada often covers used equipment, as it is 100% financeable if the equipment has value and has been properly maintained, etc. On larger transactions an appraisal might be required.


Delivery & Installation - it is critical for you and the lessor to ensure you have a solid understanding of delivery dates and acceptance terms. In many cases your vendor can be paid in advance if they are out of the country, etc. However, actual payments on your lease will of course only begin when you have received the equipment, and it has been accepted as functional, etc.


Lease structure: Clearly this is one of the most important aspects of equipment financing and leasing in Canada. At its very basic you simply need to know the type of lease you are entering into and what the overall rates and structure and terms are. We can categorically say that this is probably where most of your time and outside expertise should be spent.

Leasing is a relatively simple process to complete, but you acquired knowledge of the types of leases available, who is offering them, what the rates are, and how your overall credit quality is positioned are key aspects of lease financing in Canada.


In summary, knowledge of leasing basics is a powerful asset for Canadian business owners and financial managers. Thousands of Canadian firms utilize lease financing for a variety of benefits, some of which might be more important to you than others. Investigate the benefits of lease financing and spend the required amount of time to ensure you receive the proper approval, rate, term, and structure for your equipment needs!

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.



Stan Prokop

Financing Assets In Canada : Business Equipment Leasing Via Lease Finance Should Be Your Go To Asset Funding Strategy

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Just The Good Stuff On Financing Assets For Your Business

OVERVIEW – Information on financing business assets in Canada . Lease finance solutions deliver and 80% of owners/financial mgrs consider the equipment leasing solution

Financing assets in Canada is based on the premise that your business requires these assets to stay both competitive and probable. The reality of acquiring assets for you business of any type is understanding that they typically depreciate in value - that’s why lease finance works! Want the ' good stuff ' on this accepted and popular asset finance strategy? Let's dig in.

A commercial lease finance company is more often than not your best partner to acquire and pay for assets on your behalf - and that means any king of assets - plant equipment, rolling stock, software, technology, etc. Almost any asset can be financed.

So how does a truly effective lease financing solution work? Simple actually - you lender purchases the equipment on your behalf - they outlay the full purchase price and you ' lease ' it back over a fixed period of time - typically from 2-7 years.

Numerous benefits accrue to your form when you acquire assets through lease acquisition. Simplicity is often the key driver here, as many applications can be adjudicated in a manner of days, if not hours! Typical info you might need to provide is description of the assets, or perhaps a quote from a vendor, your business financials, and miscellaneous info required to prove that the asset will generate cash flow and revenue and profits to grow your business.

That simplicity becomes a little more challenging by requiring you to ensure that you have picked the right type of lease/ financing partner. Here it might be good to get the assistance of an industry professional.

Not only the type of lease you pick is important - it’s also critical to ensure your company knows your rights and obligations at the end of the lease. Most clients wish ownership of the assets or technology to revert to their company at the end of the lease term. However in certain cases many businesses should look at operating leases to simply use the assets with the lease term - that often lowers the monthly payment. Bottom line - it's all about knowing what value the asset has to your business at the end of the lease term.

Looking for some good news in these challenging troubled times? Well the reality is that lease finance solutions are available to pretty well every firm, from start up to established corporation. Even the largest well known public companies of significant size use equipment leasing for cash flow and balance sheet reasons.

Quite frankly, as is the case in a lot of banking scenarios transactions for smaller or start up firms are based significantly on the credit history and business experience of the owners, so Canadian business owners should be prepared to demonstrate the proper credit history and business acumen.


There is no limit to the amount of financing that is available in Canada for lease financing. During the economic crunch of 2008 and 2009 many lease firms actually got assistance from the government to keep the wheels of lease financing moving. Markets have stabilized and funding is generally as abundant as it ever was for the right types of assets and credit quality.

Our bottom line today? Lease financing is very simply and has clear benefits. As we noted the challenge is in getting approval for the right transaction in terms of credit approval, rate, and overall lease structure.

Seek out and speak to a credible, trusted, and experienced advisor in this area to ensure you are making the best use of this valuable Canadian business financing strategy.




Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com


7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR

Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop

Financing Assets : Let An Equipment Finance Company Get The Job Done

How To Fix The Problem Of Acquiring Business Assets

OVERVIEW – Information on financing assets in Canada. The equipment lease company solutions your firm has access to provide a multitude of flexibilities in your consideration for fixed asset investments in equipment, technology, rolling stock, software, etc .

Financing assets for any business is a key challenge for owners/mgrs. How then to fix that problem? The answer may well lie in the solutions provided by the right business equipment finance company. Let's dig in.

The popularity of equipment leasing is proven if only for the fact that it's commonly used in almost every country in the world these days. Here it's always about the value of the asset and its ability to generate profits and cash as well as of course growing sales.

The right lease partner or advisor will have the ability to understand how leased assets help your business and industry.

Lease financing is all about ' use ' of the asset, as well as easy acquisition. In many cases you are able to ensure the asset title and ownership passes fully to you the lessee at the end of the term. Asset ownership does not pass when you choose to enter into an ' operating lease ' or rental.

The true life of the asset / assets you are financing is an important concept to understand. Your goal, should you choose to accept it? Simply speaking - match the cash outflows of your lease payment to the overall useful life of the asset.

We mentioned rentals/operating leases already - they are used for temporary uses of assets - a good example is computer and software leasing where assets need to be refreshed continually due to technology changes.

Naturally owners / mgrs have the option to utilize bank term loans as another way of acquiring assets. The key benefit of leasing is touted as little or no down payment - i.e. 100% financing. We encourage all our clients to use any form of ' lease vs. buy ' analysis to ensure they are entering into the right financial arrangement. Here you are well reminded to ensure you understand the balance sheet and tax implications of buying, owning, and depreciating any asset on your balance sheet.

While in many cases you might pay more for the overall lease transaction ( not always, but sometimes ) don't ignore the ability to have the flexibility to structure cash flows, re-do the lease, or ensuring you have some options that might make sense at end of lease term.

So who in fact are the ' key players' in Canadian equipment finance? Fortunately, or unfortunately, depending on how you look at it there are numerous firms that offer these solutions. They include some banks, manufacturers themselves (captive finance firms) as well as commercial independent finance companies.

Knowing which leasing company can address your working capital needs as they relate to acquiring fixed assets is key. Not every firm can qualify for all the bank financing they need - so they aren't able to acquire what the pros call ' conventional finance '.

If your firm is considered very ' credit worthy ‘why would you consider a non bank commercial finance company? The answer? It's a simply and faster method of closing a transaction purchase , while at the same time not restricting other credit line needs your firm might have .

If you truly want to ' fix ' the problem of putting new assets into your business on a one time or continuous basis seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can make the job of ' financing assets' easier.



Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop

The ABL Business Credit Line Facility Is The Glaring Difference In Financing Assets

Is Your Business Credit Line Search Like An Internet 404 Error Page?

OVERVIEW – Information on the asset based business credit line facility in Canada. Financing assets such as a/r, inventory and equipment under one borrowing facility

The ABL business credit line facility is a relatively new solution that many business owners / financial mgr's are still relatively unaware of. In the case of this it's all about financing assets your company already has. When it comes to operating credit lines many business people today feel that their search for this type of financing feels somewhat like the internet error 404 page... i.e. : ' NOT FOUND'. Let's dig in.


There are not a lot of ' standby' solutions when it comes to business operating lines of credit. Frankly you've got two choices - a Canadian chartered bank facility or a non bank commercial asset based credit line. The later, often called ' ABL ' is growing more popular every day. In some cases banks will recommend to existing clients that they are more suited for asset based lending solutions.

Also, unknown to many, for larger transactions in the 5-10M range and up, banks offer these facilities- although it's somewhat up for debate among industry professionals as to whether there is a huge difference in approval criteria.

The true beauty... perhaps better called ' flexibility ' of the ABL facility is that it appeals to every type of business - start up, high growth, financially distressed, public and private organizations, and large mature organization that are for all intents and purposes doing very well. Companies who are seeking informal or legal re-organization often view asset based lending as the immediate solution to the long journey back to financial health.

Asset based credit lines almost always command higher borrowing rates, but the trade off of course is that your borrowing power and approval chances are extremely high in almost every case where your balance sheet has receivables, inventory and fixed assets. It's these three categories that combine in whole or part to give you your new revolving credit line.

It's interesting (at least to us) to see how both banks and competing commercial credit line offerings view the qualifications for financing assets. From the banks perspective it's all about ' cash flow ' - your ability to positively turn over assets combined with profits and depreciation calculations. The ABL lender simply goes to the balance sheet and values your assets - and by the way almost 99% of the time in a more generous manner than Canadian chartered banks.

What are some of the specific reasons that companies gravitate towards
the ' financing assets' approach of ABL? They include fluctuating sales, the ability to reorganize and pay down some or all of term debt on the balance sheet, and the strong alternative to the inability to access new equity capital - either public or private. By the way, an often used strategy in the ABL business credit line facility environment is the use of the borrowing to acquire a competitor or strategic partner. One expert calls this the alternative to the ' blank from the bank'!

The real formula for ABL asset financing is simpler than you might think: 90% financing of receivables, inventory finance at real market values, and equipment financing within the credit line at appraised values.

If you haven’t figured it out by now asset lenders spend a lot more time keeping tabs on your firm - by simply requested more ongoing detailed reporting and asset schedules on receivables, inventory, etc. If you have trouble providing that basic info we're suggesting you have other problems. You lower your borrowing costs by actively managing those asset categories, drawing down on your facility only as you need it.

There are some attractive and workable ' subsets' to the ABL business credit line facility. They include Inventory finance, Confidential receivable financing lines, and PO financing. Whatever your need in financing assets or achieving the right ' type' of revolving credit solution seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with solutions that will make that ' glaring difference ' in financial success . Bottom line - no more 'not found' results similar to that 404 Error page!


7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CREDIT LINE ALTERNATIVES AND EXPERTISE






7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '


ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






Stan Prokop