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

Saturday, January 4, 2020

Guide to Equipment Financing To Finance Business Assets




















 

Tips to Help You Find the Best Equipment Financing Company



How to Finance Business Assets





Equipment financing and leasing
is offered by a number of equipment lease companies in Canada. The only problem is knowing which company to work with, and moreover, how to ensure you receive the best rates, terms and structures available to your firm - based on your overall credit quality and the assets being financing .


Let’s get right to the point - let’s assume you have been approved for a lease financing, or that you have received what appears to be a competitive lease offer.

The information we share with clients focuses around how the lease company makes money - if you know that then clearly it becomes much easier to determine if you have a competitive structure - one that involves both rate, term of the lease, and conditions.

First of all, ensure you know what type of lease you are getting into - there are only two basic types in Canada, operating leases and capital leases. And we will keep it even simpler than that - if you wish to keep the equipment at end of the term of your desired lease get a capital lease, if you intend to use and return the asset negotiate an operating lease.

As we said, you can save or even make money if you know how a lease company makes money - and for the record we are totally in favor of any lease company in Canada making a reasonable profit relative to risk and reward, as well as a reasonable return on their own cost of funds. (Leasing companies borrow money just as your firm does!)

So what areas of concern and diligence should you have around a lease financing? We can summarize all of the main methods a lease company makes money on your transaction in three categories : interest rate charged on the lease , any tax benefits that might come from the financing, and finally, the re-leasing or sale of any equipment that comes off lease or is returned .

Those are pretty key basics, but there are probably 20 other methods in which your lease is ultimately recorded as a profitable deal. Let’s look at some of those areas in which you can have a direct negotiation or input on.

If your supplier is getting paid in advance your lessor will want to confirm they are ok with that – what you need to do at this point is ensure that the agreed upon financing in this interim period is clear and acceptable to yourself . Additionally many lease companies offer, or have alliances with firms that provide asset insurance. We totally agree that insurance is a requirement, after all the lease company has to ensure the collateral they are financing is there of course. But you should ensure that the insurance is fairly priced.


Quite frankly we recommend to clients that they contact their own insurance broker and provide the lease firm with a certificate of insurance with the lease company named as loss payee. That’s a cost effect method of addressing this issue, with you as the lessee still being in control.

Documentation and filing fees have continued to be standard in the Canadian equipment financing and leasing industry. Typical charges for this tend, in our experience to be in the 250-300$ range. Anything more excessive than this should be questioned. These charges cover the preparation and registration of lease documents under the governments Personal Property and Security Act regulations.

In general we are not if favor of clients paying commitment fees to get a lease transaction done – however we temper that by saying that if your transaction is very large and requires a significant amount of due diligence, credit investigation and analysis, then these fees we feel are sometimes justified . Ensure they seem reasonable Vis a Vis the size of your transaction.

In summary, the profits made by your lessor should be legitimate – profits vary based on your firms overall credit quality, the size of the transaction, and the amount of time needed to consummate the transaction by both parties. The difference may not always be in the interest rate you are receiving, and we tell clients they actually get to pick their own interest rate – simply because your firms overall credit quality has determine your general price structure as the leasing industry in Canada is very competitive.

Confused about how you can control your lease transaction and the profit made by your lessor? Speak to a trusted, credible and experienced leasing advisor with a track record of business finance success who can guide you through key aspects of a successful lease negotiation.






7 Park Acvenue Financial:

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

Direct Line = 416 319 5769


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.



















Tuesday, December 31, 2019

Quick Tips to Help You Find the Best Equipment Financing Company















Important  Things You Need to Know About Equipment Financing







Equipment Financing in Canada is a specialized type of financing. Lease financing on its own goes back hundreds of years and is a widely accepted financing tool. Major companies in Canada utilize lease financing, why shouldn’t your firm.


Lease financing covers all sorts of equipment – that includes production equipment, transportation equipment, machine tools, computers, etc.
Heavy equipment financingis a popular category in this segment, for both new and used assets . In general most Canadian banks do not offer lease financing, although two of the Chartered banks have dedicated lease operations but require a very high quality credit quality.


You should consider leasing because it’s a simple to arrange financing agreement between yourself, your vendor of the equipment, and the lessor. Leasing should not be considered complicated, however Canadian leasing practices and the parties that participate are much different than in the U.S. . . . It benefits Canadian business owners and financial managers to ensure they understand why leasing is so popular.


Equipment Leasing and Financing Options




Two basic types of leases are available for the Canadian business owner – they are capital and operating leases. Operating leases are often promoted by manufacturers or vendors and they often include maintenance and insurance. You should consult with an Equipment financing specialist to ensure an operating lease is right for your firm.


The essence of an operating lease is that your intent is to use the equipment, but not to own it. When you enter into an operating lease ensure that you have no intention of owning the equipment at the end of term. In this case your payments will be much lower than if your intention is ownership, and you will have the benefit of some balance sheet improvement, as this lease is not shown as debt on your balance sheet. The alternative lease is a capital, or financial lease, which denotes ownership.



We can’t over emphasize the need to work with a trusted, experienced and credible advisor in this specialized area of financing in Canada. An equipment financing specialist will help you maximize the benefits of lease finance when it comes to acquiring assets, new or used, for your business .Seek out a professional that will assist you in acquiring the equipment you need and answer any questions you have about the proper rate, term and structure that your firm deserves based on overall credit and asset quality.


Equipment can be new or used, and a good lease financing specialize will be pleased to assist you in maximizing the benefits of lease financing, which include:

Simple Ways to Benefit From Lease Financing




  1. Better use of working capital
  2. Saves cash - often eliminates down payments
  3. Often cheaper than a term loan  
  4. Faster and convenient re application time/process 
  5. Wont restrict your current banking arrangements  
  6. Payment flexibility  
  7. Pays for equipment out of before-tax savings rather than after-tax profit  
  8. Financing Leverage - leaves normal bank lines undisturbed  
  9. No ownership dilution  
  10. Fixed rate financing in today’s low interest rate environment.


Specialists in any industry are a benefit. Consult a lease financing specialist for your asset acquisition needs. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist your with your capital needs.









Wednesday, June 5, 2019

Canadian Equipment Financing . When And Why To Consider Business Leasing Companies For Funding Your Corporation




INFORMATION ON EQUIPMENT BUSINESS LEASING IN CANADA









Equipment financing in Canada. Let's discuss when... and why you should utilize business leasing companies for Canadian asset finance.

The motivations behind equipment leasing in Canada vary by client. The reality is, and many don't look at it this way, is that the motivators are actually economic and non economic, depending on the circumstances within each client. We find that many are surprised to hear that banks and insurance companies utilize lease finance on a very significant basis. Our clients can be forgiven when asking ' why would a Canadian chartered bank, with all the cash in the world (or at least most of it ! ) consider business leasing companies for their asset acquisitions?

Clearly it’s a case of non- economic for them, they rely on this method of asset acquisition as a way to address areas such as the ability to control technology for example, in their computing and telecom needs.

The equipment leasing industry in Canada is exceptionally robust and competitive this day. We actually think half the battle knows which firm, or advisor will best suit your various needs when it comes to pricing issues, cash flow structuring, accounting and tax implications, etc.

Again, the Canadian business owner and financial manager can be forgiven also for not knowing where to turn to when it comes to the various firms that have specialization in small ticket transactions, medium sized deals, and lease financing transactions in the multi million dollar ranges. It goes without saying that no one firm can be all things to all business. That is for sure.

The actual economic of why your firm leases, and when it leases are critical. You have to be in a position to have done, or be willing to do, some analysis on what aspects of equipment financing are most important to your firm. The bottom line? It's that you need to figure out what’s important to your company, whether its cash flow management, payment seasonality, tax benefits, the ability to ' refresh ' assets, and in many cases bundle in all sorts of other costs such as delivery, installation, maintenance / support, etc. It is then you are in a position to move forward with your equipment finance strategy.

What are then some of the other key points when it comes to why you should consider working with business leasing companies?

Those other points to consider might be as follows: You want to be in a position to match cash outflows with the useful life of the asset. In telecom and computing that is critical. In other cases it might be of primary importance to achieve a low lease rate inherent in the transaction - when benchmarked against your own firms cost of capital this alone is a solid reason to finance via lease.

If you are in a medium sized or larger firm the way your management is measured might make it a great idea to lease assets, as EBITDA and ROI calculations might factor into your managements or owners compensation criteria. That’s not our favorite, but it's a reality!

New accounting rules in place might make it more difficult these days to achieve true off balance sheet financing - but just the lower rates and monthly payments in an operating lease, plus the ability to return, upgrade or extend alone still make this option feasible and viable for your firm .

So we guess it's all about timing, knowing when and why your firm should utilize equipment financing from Canadian business leasing companies. Speak to a trusted, credible and experienced Canadian Business Financing advisor who can assist you to achieve maximum use of those ' when' and ' why ' criteria.






7 Park Avenue Financial :

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

Direct Line = 416 319 5769


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.