WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Showing posts with label financing equipment. Show all posts
Showing posts with label financing equipment. Show all posts

Friday, November 10, 2017

Benefits of a Commercial Equipment Lease for Canadian Business















The Business Of Financing Assets For Your Company




Information on the benefits of commercial equipment lease financing in Canada







Canadian business owners and financial managers are constantly challenged to come up with financing alternatives for both working capital and the asset acquisition.


Let's focus on why a commercial equipment lease provides your firm with some of the best financing benefits and alternatives. In order to be successful in financing equipment it is important to know several key things - we can summarize those in a few critical categories:

- Understanding what lease company is the best fit for your firm

- Focusing on what benefits are important to you in an asset acquisition

- You must have the ability to de-mystify lease pricing and rates and structures to ensure you are getting a competitive market rate and structure


When you make the equipment asset purchase decision you are always faced with what is known as the ' lease vs. buy ' scenario. We don’t intend to make out information shared here an accounting lesson, but either using a lease vs. buy calculator or template, or, even better, speaking to your accountant you can easily come up with a rudimentary analysis of what the best financing option is . If it is lease financing then you are ready to move forward.


We talked about our critical point # 1 - which is simply to understand who your best lessor might be. The factors that determine this might seem like common sense - they are: The type of asset you are acquiring, the dollar value of the asset, and the overall credit quality of your firm you are in a position to focus on the firms that finance this type of asset.


The good news is that there are hundreds of lease financing sources in Canada - the flip side of that coin is that you might not have the time to invest in speaking to 100 different firms.


In most cases in makes a lot of sense to seek out the service of a lease financing expert who will be in a position to source the optimal funding as well as the best rate, term, and structure.


We advise all clients that, if they can, they should try and determine if the manufacturer provides financing - this is known as ‘captive ' financing and 99% of the time is your best deal - and fastest approval . That’s simply because the mfr. finance arm is incented to move product, as well as earn some income on the financing of course!


We talked in point # 2 about focusing on benefits - Leasing has numerous benefits. It would be rare that every benefit applies to every firm - so we recommend to clients that they outline what is most important to them with respect to the financing of this asset - those considerations might be a lease to own financing, or in some cases, an ' operating lease, which is akin to a short term rental, although a typical operating lease might range between 2-3 years in duration. The benefit of that type of financing is simply that your benefit from the use of the asset, not the ownership of it, and profiting through use of the asset is what it’s all about in business.


We tell clients that we aren’t necessarily overly proud of the way the industry sometimes confuses customers with a myriad of terminology and options, these includes references to FM, skip payments,

First and last, full payout, bargain purchase option, etc.


The most important piece of advice we can give a client is simply that by properly positioning their current financial position, demonstrating profit through use of the asset, and knowing whats important to them re payments, approval, lease term, etc should in fact allow them to maintain a control position in any lease financing negotiation.


Be an informed lessee in your search for a commercial equipment lease, understand that the market is competitive and people do want your business, and focus in on what financing equipment benefits work best for your firms sales and profit prospects.





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.
















Friday, May 27, 2016

Asset Financing Strategies In Canada : Understanding Equipment Leasing For Your Equipment Financing Requirements







Want To Stop Chasing Asset Financing Solutions ? Here's How !


Information on equipment leasing in Canada. Proper asset financing strategies are a key part of financing equipment and technology needs in Canada





Lease Financing
– Canada continues to view this option as a major source of capital expenditure financing in Canada financing in Canada. More and more companies are gravitating to leasing as an effective financing option for their equipment needs.

Canadian business owners and financial managers need to be aware of the types of lease financing out in the marketplace, with respect to documentation, rate, term and structure, and of course, most importantly, approval .

The term for most leases in Canada, based on our firms experience tends to be between thee and five years. With respect to what asset type can be leased, probably the better questions is to ask ‘what can’t I lease ‘? That’s is because almost every type of asset can be lease financed. Leasing firms do like to focus on equipment and assets that are ‘revenue producing ‘in nature – i.e. those assets that will generate sales and profits for your firm – that’s because the lease is of course paid from the cash flow out of those profits and sales.

Many business owners do not, unfortunately, have a solid understanding of what types of leases they can enter into. Doing your basic homework in this area will save you potentially thousand of dollars over the term of the lease, based on estimated asset values and the type of lease you enter into. (There are two types – capital and operating).

When we ask business owners and financial managers why they lease more often that not the answer comes back relating to preservation of capital. In today’s difficult financing market Canadian forms want to preserve cash and credit lines for other basic business needs.

Other firms are very focus on how the optics of the lease will affect their balance sheet – many larger firms focus solely on operating leases, where the asset remains off their balance sheet as debt, and the payments are reflected as an operating expense. When debt to equity ratios and cash flow coverage ratios are important to your firm, your bank, or your shareholders then leasing via an operating lease becomes a very effective financing tool.

Leasing tends to be ‘fixed rate’ financing. Given today’s relatively low interest rate environment it of course makes a fair bit of sense to lock into a good low rate for the next three to five years.

There isn’t a day goes by when we don’t hear of in the radio or the financial press concerns about inflation. When costs go up in an inflationary environment the business owner takes solace that his lease payments are fixed and at a respectable rate.

We spoke previously of capital conservation – more often than not leasing is 100% financing – on occasion a customer may be required to provide a first, or first and last payment, and sometimes a down payment, but in general business view leasing as 100% financing. That’s a good thing relative to cash flow management.

When we talk to business owners about leasing we frequently use the term ‘options ‘. That is because leasing lets you have a final vote in your capital expenditure financing. Properly structured leases allow you to return equipment, buy it out at end of lease, or extend the term of your lease if you feel the equipment will be used for another specific period of time. Many lessors will even allow you to go ‘month to month ‘.

Naturally in today’s competitive environment it makes sense to stay ahead of technology whether that is computers or plant equipment or rolling stock. Leasing allows owners to use the asset and ensure that you have access to newer assets if your firm needs them – upgrades are very common in lease financing in Canada.

We spoke of ‘approval ‘previously .Since most lease financing is done outside of the banks in Canada independent finance companies focused on lease financing work hard to generate an approval for your asset financing. Typically a lease finance approval can be obtained in a week or so as long as you have the required information, which is generally an asset description of quote, and the basic financial information on your company, i.e. your financial statements.

Investigate the benefits of leasing by talking to an experienced and credible advisor who can ensure your firm is maximizing those lease finance benefits! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset finance needs.




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.












Tuesday, February 26, 2013

Financing Equipment ? Best Practices and Success Tips For Operating Leases And Capital Lease Solutions









3RD Down And 110 To Go?
Let Equipment Finance Options Solve Your Asset Finance Problems!




OVERVIEW – . Information on financing equipment solutions in Canada. Choosing the right capital lease or operating leases if applicable solves Canadian business finance challenges






Financing equipment challenges. It's almost too easy to have that ' 3rd down and 110 yards to go ' feeling when it comes to asset finance. That's why a properly selected and structured capital lease or their counterpart, operating leases might just give you that ' touchdown' feeling. Let's explain.

The concept of making good decisions around the financing of your business assets solves the problem of reducing capital outlay - and that's whether you're starting a business or if you're a major corporation.

Probably 9 out of ten clients we talk to focus solely on their new found ability, with lease finance, to pay a specific fixed amount every month. They have budgeted for that, they feel they can make the payments, and at the same time the asset or assets financed help them run and grow the business.

That’s a logical and ' ok ' line of thought. But in fact you might be missing the boat when it comes to other major advantages of this method of Canadian business financing - those might include upgrade ability, wrestling with obsolescence and the real useful ' economic life ' of the asset you are acquiring . No more clear an example is when you lease computers, telecom and software, which constantly evolves technologically and requires upgrades and changes to keep your firm competitive.

And we don't want to forget the tax and accounting benefits that come with a properly structured lease - they are key to maximizing the benefits we are discussing. Although operating leases , or ' leases to use assets , not own them ' are somewhat under attack in the accounting world these days they still can provide significant cost savings and flexibility when it comes to purchasing, returning, or extending your asset finance transaction .

The challenge that sometimes seems so simple can actually be your most time consuming when it comes to asset financing and lease financing. That challenge? Figuring out who to deal with! One thing we can say is that lessors are more motivated to approve your transaction, as they are solely focused and in the business of doing one thing - leasing business assets in all categories.

Typical capital lease and terms in Canada range from 2-5 years, and operating leases tend to be in the 2-3 year category - given that they are much related to upgrades, returns, and lower payments coming from your lessor’s investment in the asset. When it comes to capital leases the arithmetic is very simple - the longer the lease term the lower the monthly payment, and if there is a down payment required that of course also lowers the monthly rental on the lease.

Where thing sometimes go awry is when the Canadian business owner or financial manager doesn't quite understand that leases can't be terminated without a penalty of some sort. That's why negotiating the right type of lease, and the right term based on your specific asset being financing is key.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing equipment needs. All of a sudden 3rd down and 110 doesn't seem so daunting!

Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.





7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


























Tuesday, November 27, 2012

Leasing Assets ? Got What It Takes For Financing Equipment With Your Lease Company . You Do Now!







Managing Your Equipt. Leasing Relationship?

OVERVIEW – Information on leasing assets in Canada . Financing Equipment Via A Lease Company requires this fundamental knowledge



Leasing assets in Canada. Quite frankly it’s a relationship you're in when you’re financing equipment, and a lot of Canadian business owners and financial managers could do better when financing equipment and assets if they managed and partook in that relationship with their leasing company. Let's explain!

Selecting assets for your business is tough enough these days when it comes to technology, pricing, cost, etc. The business owner or financial manager doesn't need to have that same level of concern around the financing though. It's a simple case of being a bit more proactive in the relationship. We're told a relationship is a ' connection or involvement ' -

so we're saying it's about time to get involved with that lease company.

Knowing the bottom line and the actual financing cost and benefits of asset acquisition is what it is all about.

In every lease transaction it's important to understand the inflows and outflows of cash flow in your company as it relates to assets. Two key points here - one is that the rate and type of lease will determine your monthly payment or cash flow - but the business owner/ manager often doesn't consider the cash inflows or benefits that come from acquiring many revenue producing assets . It’s important to look at the total picture, especially, as we said, if you have got a revenue producing asset on your hands.

Part of every concern the business owner/ manager shares around acquiring assets is the lease versus buy decision. So do spend some time on determining if your asset decision makes good common sense re benefits, costs, and cash flows.

In lease finance it's all about ' cash flow ' and monthly payments. True of false? Well we can offer up for sure that most clients seem to place the most emphasis on those two points. While it’s fairly simply to determine monthly payments and total interest costs etc don't forget also that the type of lease you enter into also has some effects on your rights and obligations in your equipment financing transactions.

The ability to terminate a lease, return the asset, or even extend the lease simply makes it critical to having a solid relationship with the right lessor.

Lease companies use several strategies to maximize income, and of course no one denies or should deny their right to make a reasonable profit. But just proactively managing your relationship with your finance firm allows you to understand key lease company profit components of your transaction. For instance, have you ever asked your company if they have calculated that great rate you just got ' in advance ‘, or ' in arrears '. You just might be surprised at the answer, and the cash flow outcome.

Our bottom line today - take the initiative in managing and understanding the relationship between you, the asset in question, and your lease company partner. Seek out and speak to a trusted, credible and experienced Canadian business financing professional when it comes to leasing assets in Canada.


7 PARK AVENUE FINANCIAL
CANADIAN LEASE FINANCE EXPERTISE




Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 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 re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/leasing_assets_financing_equipment_lease_company.html



Sunday, October 16, 2011

Financing Equipment For Your Business? Canadian Leasing Options Demystified !




It’s Not Always About The Monthly Payment !


Information on financing equipment in Canada. Which leasing option is best for your business. Examining Finance alternatives for Canadian business owners who are acquiring assets.



Acquiring assets for your business, from plant equipment to the latest computing technology provides Canadian business owners and financial managers with growth and profit potential. But how much time do you spend on assessing the right business leasing options when financing equipment.

Let's examine the strengths, benefits, and yes, sometime drawbacks on your lease financing options.

We're of course assuming that you conquered the lease vs. buy decision and focused on leasing business assets for the obvious reasons we've discussed in the past: monthly payment flexibility, accessing business credit outside your established bank and other facilities, and using tax and accounting scenarios to your business advantage.

So that puts you there, at the fork in the road so to speak. Namely which type of business financing equipment lease works best, for you. It's actually not a large choice... it comes down to a capital lease or an operating lease. Understanding the make up of those two transactions makes you a winner when it comes to choosing which option works best for your firm.

Let's examine Capital Lease structures... and benefits. Prior to choosing a capital lease option you have a general sense that you wish to own the asset at the end of the lease term. The capital lease, aka ' lease to own ‘effectively transfers ownership to you at the end of the lease term. Hopefully you have picked the right term on your lease, matching use of the asset to a proper amortization. In Canada that typically is 2-5 years, sometimes longer depending on the asset type.

From an accounting perspective, since you have elected the lease to own strategy via a capital lease you are no win a position to both depreciate the asset as well as record it as an asset on your balance sheet. The equipment financing industry in Canada considers full payment of the rentals, i.e. the monthly payment as the full recovery of their cost plus profit, i.e. the interest rate on your lease.

As an aside clients are always asking us about rates on business equipment leasing. Rates vary widely in Canada. How widely? Anywhere from 5 - 25% per annum and boy is that a range. Clients are astounded when we advise them they get to pick their own rate! How can that be possible? Simply because your over all credit quality and the dollar size and type of asset dictates lease pricing. You have got to simply demonstrate that credit quality or address any concerns of the lessor.

But wait... didn’t we say there were two options for financing equipment. The other option is the FMV option, known as the operating lease. Payments will always be lower than a capital lease option, simply for one reason. That’s because the operating lease scenario assumes the opposite of ownership, and that’s ' use '. You want to use an asset, not acquire the responsibility, and risk, of ownership. The good news is that if it turns out you wish to purchase the asset that a properly constructed FMV lease will allow you to still exercise that right, at a fair price.

Confused about the right business leasing options available in Canada? Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in freeing up working capital and maximizing tax and accounting treatments for business asset finance in Canada.



ABOUT THE AUTHOR : STAN PROKOP - 7 Park Avenue Financial


http://www.7parkavenuefinancial.com/financing_equipment_business_leasing.html

Sunday, May 22, 2011

Don’t Strike Out With Canadian Leasing Finance Companies – Hit Home Runs Via A Financing Equipment Company


Sports analogies don't always work, but this time we think it’s quite appropriate. Striking out, i.e. losing when you are considering financing equpment strategies in Canadian lease finance should not be part of your preferred ' home run ' strategy when you work with a lease company.

The exhilarating feeling of the ' home run ' in equipment finance comes from completing a transaction for a new or used asset, knowing that you have achieved solid success , i.e. your ' home run ' based on a final great approval, rate, lease term, and flexible structure .

Strike outs rather, come from that other feeling, the sinking one, realizing that you have been pushed into a transaction that doesn’t make sense. Many lease finance firms in Canada are only happy to put you into a final structure that fits their approval and security criteria, not necessarily yours.

So, keeping our sports analogy in place, how do you create a winning streak for financing equipment success in Canada? We believe its simpler than you think, if, and its a big if sometimes, you are ‘armed and dangerous’ relative to knowing your lease options , and what leasing finance benefits accrue most favorably to your company .

First it’s all a questions of ' fit '. In Canada there are three general categories of a financing equpment company. They are small, medium and large... ticket that is. (Almost feels like buying a suit, doesn’t it?!) So when you have a new or used asset to finance remember that you should be working with a firm that specializes in your size and asset type. Why spin wheels approaching , talking to , and asking for a lease quote for a new computer system for your office when the lessor is only looking at transactions several million dollars and over - bottom line its a waste of your time, and theirs .

Step 2 simply understands lease products. In Canada, we keep it relatively simple... (The U.S. has tax leases, trac leases, leverages leases, synthetic leases, etc!) But us Canadians can generally get by with capital or operating leases. A simple way to remember both is simply lease to own, ( capital ) or lease to use, (operating ). Knowing the type of lease you want can save you a lot of time, plus potentially thousands in interest rate and total payments made savings.

The 2 other areas of Canadian leasing finance that you should be knowledgeable about are lease options, and approval criteria. When you investigate leasing finance is aware of critical issues such as down payments, security deposits, the total all in rate, hidden registration fees, etc. Bottom line; spend some time on certain areas of the fine print when that makes sense.

We done necessarily agree, but most clients think that rate and monthly payment is the ultimate home run criteria in Canadian leasing company negotiations . We haven’t told them that in Canada, unbeknownst to most customers, you actually get to pick your own rate.

How? Simply because rates are provided based on credit criteria, and knowing your firms credit and how to present it generally allows you to gain the best rate possible without much negotiation. The good news is that Canadian firms with great credit can get lease financing, and firms with less than great credit, i.e. financial challenges can also achieve lease approval through a more structured approach - i.e. a shorter term, or perhaps a down payment.

Well that’s it. Hopefully you feel confident now as you step up to the bat that you can achieve a financing equpment home run. Its simple , just remember our basic tips around lease types, how rates are determined, and types of leases and how the industry is segmented in Canada .

P.S. See you at the World Series!



Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/financing_equipment_leasing_finance_company.html

Tuesday, March 22, 2011

5 Dangers of Financing Equipment - From Technology to Machinery - Avoid These Mistakes With your finance company or leasing firm.


You've seen the sign - it reads ' Danger Ahead ' !No we're not talking about a curve in the road but rather discussing 5 key areas where Canadian Business makes thousands ( or millions ?) of dollars in poor judgment around critical areas of financing equipment via a third party finance company - and our discussion covers all assets from machinery to technology .

Let's review 5 key dangers areas in equipment financing in Canada and provide you with solid real world tips on how to successfully navigate these areas to better enhance your company’s ability to maximize on lease finance company benefits.

Item 1 - Structure - Lease financing is all about structure. Unfortunately most clients we deal with only always focus on 1 of the 5 elements of a lease transaction. (By the way, those are: term of lease, lender interest rate, value of transaction, payment, and obligation at end of term)

Let's use a quick example - we'll take a sample 100,000$ transaction. On a 3 year capital lease to own scenario your monthly payment at an assumed rate of 8% is 3112$. However, if you chose an operating lease (i.e. use equipment and not own it) your payment would come in at around 2490$/mo. And if you took our first example, and either were required, or voluntarily put down 10% the monthly payment is now 2801$. Same deal, different payments. Which one is best? That is only for you to decide based upon your unique asset acquisition situation.

So interesting calcs, but what’s our point you say? Simply that by understanding how the finance company utilizes structure to provide you with a ' monthly payment ' can arm you with knowledge that will ultimately translate into a payment scenario that works for your firm. Bottom line - understand how the lender views and utilizes the five elements of your final lease calculation.

Danger Item # 2- Pricing! We suppose that the late famous Vince Lombardi might say ' Lease pricing isn’t everything, it’s the only thing!' Sorry Vince, we couldn’t disagree with you more. Your ability to match the right term of the lease with the right finance company and type of lease you choose (there are several) can pay for itself many times over . Its now always about rate and pricing because if it was always about price we would all be driving low end compact cars - many of us dont , because we have financial options and alternatives . And by the way, its a competitive market , so by positioning your firms credit quality properly you will always receive a competitive rate .

Danger - Item 3- Credit approval . Most clients simply aren’t aware of how to position their financials properly in financing equipment . Whether you are acquiring heavy machinery, construction equipment, or high end software applications you need to understand what drives credit approval . Those factors are the asset you are financing, your historical cash flow, your current and sustainable cash flow, and your ability to work with your finance company to structure a deal via down payments, outside collateral, etc that make the transaction a win win for yourself and the finance company .

Danger - Item # 4- Conditions . Its all about the fine print, but many customers don't read the fine print, As a result they are subject to thousands of dollars in misc admin fees, renewal fees, possible appraisal requirements, and most importantly early pay or termination fees . Ask your finance company or Canadian business financing advisor to ensure you understand who is paying what .

Item # 5- Our last danger point ! What is it ? Simply that financing equipment is great, but in many cases are you sure you understand all your alternatives to this type of financing . They might include an asset based loan, or even a temporary bridge loan on the asset .

In summary, financing equipment in Canada occurs everyday, from assets from 5k to 50 Million dollars . Understand the hot points of what a finance company focuses on when they are leasing machinery , business equipment, or any type of business asset you need to acquire . Unsure of that Danger Sign in the road ahead ? Speak to a trusted, credible and experienced Canadian business financing advisor for navigational assistance!

-




Stan Prokop is founder 7 Park Avenue Financial ; see

http://www.7parkavenuefinancial.com
Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:

http://www.7parkavenuefinancial.com/financing_equipment_finance_company_machinery.html