Your Road Map To Success With Leasing Companies - Equipment Finance Rates And Lease Finance Solutions

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 How To Get Best Leasing Rates From Equipment Financing Companies

 

When it comes to using leasing companies for equipment finance in Canada is there a road map that Canadian business owners and financial managers can use to ensure they are getting the best solutions, rates and structures for acquiring business assets.  We think there is a basic road map that can be followed to ensure asset financing success.

 

6 Paths To Great Lease Rates & Equipment Financing Solutions

So what would the elements of that road map be? We think it comes to the following categories :

1.Solid  structures, interest rates and terms- typical lease terms are  36-60 months but for some assets 72 months might be available

2.Understanding the benefits, and yes the risks of lease finance

3.Ensuring you have chosen the right lease with a monthly payment and term that supports your financial needs

4. Understanding the accounting and tax implications of your transaction- documentation is key and the lease payment may include miscellaneous items not planned for, ie service agreements, etc.


5..Troubleshooting to ensure you're dealing with the right lease company

6.Utilizing Proper third part assistance when needed for purchase of the equipment and vendor negotations

When you have those points covered off we're pretty sure you are very close to having a solid road map in front of you for the equipment lease  journey.

There really isn't another more popular method of financing your business asset acquisitions in Canada and the U.S.  In fact billions of dollars of assets are financed every year, and the ability of your business to acquire assets with financing that comes with other benefits make this business tool extremely popular.
 

CAPITAL LEASES / OPERATING LEASES - WHICH ONE IS RIGHT FOR YOUR BUSINESS

The actual asset that your firm acquires has both a useful life and some economic and hopefully operational value to your business.  In many cases these assets will have a residual value. That's where it’s important for you to ensure you're still following some of our road map issues - namely understanding who to deal with and what type of lease you choose. Those two choices boil down to lease to own (capital lease) and lease to use (operating lease), and how you address the end of the lease options you have.

How you shape and negotiate your payments around that asset is what makes you a winning in dealing with leasing companies. Equipment finance rates themselves are important, but at the essence of this financing, tool is the fact that you have access to a lot of structuring tools that come with both risks and opportunities for you and your chosen lease company.

When it comes to types of equipment that you can finance almost any asset can be leased, and that includes technology your firm might need, medical equipment, personal protective equipment, or even application software. Yes, software leasing and financing is available. New equipment, as well as used equipment, can be financed -  Note though that used equipment should be part of a commercial business to business transaction.

 

LEASE FINANCING IS ALL ABOUT MONTHLY PAYMENTS TAILORED TO YOUR NEEDS

Typical benefits associated with a leasing company include the ability to match monthly payments to cash flow streams that make sense for your firm relative to the original purchase price. Many industries are capital intensive and use leasing extensively to conserve cash. Despite all the flexibility that is offered with lease structuring more often than not the business owner and manager simply want to know that a regular fixed monthly payment is a known factor they can readily deal with.

 

USE THESE LEASE TOOLS TO MANAGE CASH FLOW IN ACQUIRING ASSETS

When equipment finance rates and monthly payment values from a  leasing company are critical you have access to a number of solid tools -. They include lengthening the lease term, including a residual value in your structure, or negotiating lower down payments.

 

CONCLUSION

If you want to maximize the leverage your firm has in acquiring assets through leasing companies spend some time on our key road map points and protect your interests and assets. Approvals are quick and flexible in lease finance and it is not unusual for smaller deals to be approved within 24 hours! Using your business line of credit due to a good interest rate is not the best allocation of cash and you are making the mistake of matching short term cash availability to long term assets.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with commercial equipment leases or a business loan to meet your asset acquisition needs.

 

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

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial




Stan Prokop
7 Park Avenue Financial/Copyright/2020

Is 'Good Enough' Ok In Equipment Leasing When Structuring A Business Equipment Loan or Lease?

Information on equipment leasing in Canada. Canadian business needs to maximize the benefits of a business equipment loan or lease and ' good enough ' should not be an option!

Is 'Good enough' acceptable to your firm when you are looking at equipment leasing and arranging a business equipment loan or lease in Canada. We don't think so and we'll share some fundamental info and strategies that take your business financing to the next level when it comes to benefits.

You have arrived at the lease or buy decision base on your need for new fixed assets for your business. Financing those assets out of regular cash flow, or entering into cumbersome bank loan arrangements isn't an option.

The use of the asset over the long term should be what drives your financing decisions. Longer term assets require long term financing, and that's what equipment leasing is all about - matching the useful economic life of your asset to your cash flow and financing structure.

We encourage clients to take a hard look at lease term. Don't let our 'good enough' statement overtake your decision to properly match he asset term. Many lease firms that are focused on offering one type of term, or one type of lease (there are two types) are going to try to sway you towards their product or service offering. If there were only one lease company in Canada that would be problematic - fortunately there are hundreds!

Business owners and financial managers need to separate. What do we mean by that? We mean that you must separate the manufacturer and the price of the equipment from the financing. If you are dealing with a MFR that is also the financier of your asset make sure you maximize the benefits of that type of financing, known as 'captive financing' as its often the best available in terms of rate term, and structure.

The lease financing industry preaches '100%' financing for your business equipment lease and loan needs. The reality is though that often times a down payment of security deposit is required. Make sure that request is reasonable, and competitive, don't fall into our 'good enough' scenario of having to accept every term or down payment that is specified in your finance offer.

Structuring is what lease financing is all about. Be armed with a cash flow analysis that makes sense for the type of asset you are acquiring. Remember, if you don't ask or request a 'vanilla' or typical lease solution will be offered up - you don't have to accept that if your cash flow needs, business seasonality, or term of the lease are particular to how you want to benefit from lease financing.

Let's take a quick example - let's say you are leasing a 100k computer system. The lessor offers you a 5 year lease based on your firms overall credit quality, and requests a 20% down payment. and specifies payments of 1685/mo. Did you know that in many cases you could get the same lease payment for a 3 year term, saving you two years in payments? That's by utilizing an operating lease and shortening the term. Again, back to our point, don't let 'good enough' be your only choice in asset financing.

In summary, every firm in Canada has unique financial needs, and you need lease financing payments, terms, and structures that work for you. Don't accept 'good enough' in business financing. Speak to a trusted, credible and experienced Canadian business financing advisor on how you can truly maximize financial benefits of a business equipment loan or lease.

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 13 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 '


Stan Prokop








Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/6042265

Equipment Financing For Business Leasing Needs Is Your Most Powerful Asset Finance Tool

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Looking for an ace in the hole for all your business asset needs ? We’ve got one - And your competition is using it !

OVERVIEW – Information on business leasing and equipment financing in Canada. Here's why Canadian business owners and financial mgrs embrace this popular asset finance solution for acquisition of equipment, rolling stock, technology, software, and all other fixed asset needs

Equipment financing for you company’s asset needs is probably the biggest ' ace in the hole that business owners and financial mgrs have in their ' grow the company ' toolkit. Do you understand the power of business leasing? Let's dig in!

Your business is growing, and the good news is that equipment lease financing in Canada is growing even more. So it makes sense that you have a basic understanding of equipment financing and who to turn to when you want to utilize this great asset acquisition technique?

Top experts tell us that almost 80% of all companies in Canada utilize lease financing when acquiring assets, from computers to plant equipment to specialized equipment. The reality is that almost any business asset, even software to run your company, can be financed.

So what's the reason and advantage in choosing a lease solution? When you utilize this finance strategy you are sharing the risks of asset ownership with the lessor and depending on which type of lease you actually choose - there are two types - you can actually use the equipment for the agreed upon term and return the asset .


That latter type of financing, known as an operating lease, also lowers your overall financing expense. The other key advantage of course is simply lowering your cash outlays - allowing you to use your borrowing facilities for other purposes. Bottom line it's important to understand what type of lease makes sense for your firm.


When we meet with clients exploring the leasing option a large part of the discussion is on rate and credit - That's understandable because that is what drives leasing approvals! You need to be able to understand, in advance, the financial requirements of a lease approval, and ensure you have positioned your company in the best manner possible.

In Canada you can obtain lease financing via a couple of the chartered banks, independent finance firms, and captive lessors tied to manufacturers. Knowing which type of firm to access can save you money... and time.


We recommend to the majority of clients in pursuing and independent finance company lease partner - credit conditions are more lenient, they are specialized, and highly motivated to do the one thing they do best, approve and write leases!


Your most valuable partner in this industry is a trusted, credible , and experienced lease financing business advisor who can guide you very efficiently through the maze of firms in the industry . That relationship can be a very valuable one.

Business owners should never forget that when they adopt a long term leasing philosophy they are making their firm more competitive, because assets acquired to run the business can be easily upgraded and replaced, allowing that equipment to generate optimum revenues and cash flow .
Whether business owners/mgrs want to admit it or not the days of ' pride of ownership ' in assets is probably long gone. These days it's about outsourcing, lower cost, newest model, etc. Probably the best example of this is computing and software, all of which can and should be leased given the constant changes and cost.


Seek out and speak to a trusted, credible and experience business leasing advisor who can assist you in maximizing your knowledge of the Canadian asset finance industry, allowing you to use this valuable tool to grow sales and profits.

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 13 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 :

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 '



http://www.7parkavenuefinancial.com


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

Asset Finance Solutions In Canada : Fixing The Equipment & Computer Financing Needs Via a Leasing Solution That Conserves Capital

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This Just In – It’s A Shocker ! Computers and Many Business Assets Don’t Hold Their Value !

OVERVIEW – Information on asset finance in Canada. Computer Financing Via An Equipment Lease or other Leasing Strategy Makes Your Capital Work More Efficiently!

Asset Finance challenges for Canadian business owners/financial mgrs brings a whole new meaning to the term ' friends with benefits'. Your company and others are searching for solid help when it comes to help where it's needed most - acquiring expensive assets and technologies such as computers and software for your business. Let's dig in.



We maintain to clients that you need to understand your choices when making lease finance work for you; it shouldn't be a ' forced ' solution.
The whole area of lease finance gives you a positive outlook that you at least have a chance of beating the high price of technology, the fear of obsolescence , and that constant looking over your shoulder ( via the internet ?) at what your competitors are doing .


Taking on debt via long term loans is clearly not the optimal solution for most businesses looking for SME COMMERCIAL FINANCE solutions... Fundamentally, whether they admit it or not, most Canadian business owners and financial managers want to acquire the best asset without burning through those valuable credit lines and other accesses to capital. In some cases they don't even have the credit lines to draw down on.


The good news for Canadian business is that the whole spectrum of technology is in fact financeable, and, as we've noted that includes software, which is a surprise to some. Software is typically financed as a full lease to own scenario, so the key benefit quite often is simply the fact that you are matching the benefits of the software with the cash outflows of a lease finance scenario.


We're making the assumption here that the business owner, CIO, or financial manager has done what most refer to as a ' lease vs. buy' scenario. Here the business person takes into account the life of the asset, all the software licenses and support they will need for the asset, as well as the final outcome re: disposition of the asset. THIS JUST IN - IT'S A SHOCKER! - Computers don't last and hold their value! Many experts and industry analysts actually estimate that you'll have another 25,000.00 of costs associated with the acquisition of, for example, of $ 100,000.00 of new technology.


With all the competition in lease financing today approvals come faster and both small and larger transactions can be efficiently financed. That makes conserving cash easier and has made financing assets the ' go to' solution for asset/tech finance needs. Don't forget also that you have a choice of leasing assets to own, or ' renting ' them via an operating lease strategy.


Lease terms on assets financed can range anywhere from 2-7 yrs. It's critical to know your anticipated use and final value of assets you are financing - that’s when the ' sizzle ' of lease finance appeal makes most sense re convenience, speed, cash flow conservation, etc
Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with a reboot of your equipment , tech and software financing 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.


Stan Prokop

Is 'Good Enough' Ok In Equipment Leasing When Structuring A Business Equipment Loan or Lease?

Is 'Good enough' acceptable to your firm when you are looking at equipment leasing and arranging a business equipment loan or lease in Canada. We don't think so and we'll share some fundamental info and strategies that take your business financing to the next level when it comes to benefits.

You have arrived at the lease or buy decision base on your need for new fixed assets for your business. Financing those assets out of regular cash flow, or entering into cumbersome bank loan arrangements isn't an option.

The use of the asset over the long term should be what drives your financing decisions. Longer term assets require long term financing, and that's what equipment leasing is all about - matching the useful economic life of your asset to your cash flow and financing structure.

We encourage clients to take a hard look at lease term. Don't let our 'good enough' statement overtake your decision to properly match he asset term. Many lease firms that are focused on offering one type of term, or one type of lease (there are two types) are going to try to sway you towards their product or service offering. If there were only one lease company in Canada that would be problematic - fortunately there are hundreds!

Business owners and financial managers need to separate. What do we mean by that? We mean that you must separate the manufacturer and the price of the equipment from the financing. If you are dealing with a MFR that is also the financier of your asset make sure you maximize the benefits of that type of financing, known as 'captive financing' as its often the best available in terms of rate term, and structure.

The lease financing industry preaches '100%' financing for your business equipment lease and loan needs. The reality is though that often times a down payment of security deposit is required. Make sure that request is reasonable, and competitive, don't fall into our 'good enough' scenario of having to accept every term or down payment that is specified in your finance offer.

Structuring is what lease financing is all about. Be armed with a cash flow analysis that makes sense for the type of asset you are acquiring. Remember, if you don't ask or request a 'vanilla' or typical lease solution will be offered up - you don't have to accept that if your cash flow needs, business seasonality, or term of the lease are particular to how you want to benefit from lease financing.

Let's take a quick example - let's say you are leasing a 100k computer system. The lessor offers you a 5 year lease based on your firms overall credit quality, and requests a 20% down payment. and specifies payments of 1685/mo. Did you know that in many cases you could get the same lease payment for a 3 year term, saving you two years in payments? That's by utilizing an operating lease and shortening the term. Again, back to our point, don't let 'good enough' be your only choice in asset financing.

In summary, every firm in Canada has unique financial needs, and you need lease financing payments, terms, and structures that work for you. Don't accept 'good enough' in business financing. Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success on how you can truly maximize financial benefits of a business equipment loan or lease.



Stan Prokop
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
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















Article Source: http://EzineArticles.com/6042265

Not Getting All The Lease Equipment Financing For Business You Need? Financing Loans Made Simple!

Financing Loans Made Simple !
Simply your Equipment Financing Process Today

Rumour has it you aren't getting your share of the amount of equipment business financing enjoyed by your competitors and others. Let's demonstrate how finance loans can be addressed in a time line that makes sense for your firm, with the rates, structures and terms that your competitors already enjoy.

We don't think we have met any business owner recently who doesn't feel that the traditional route or bank borrowing no longer makes sense for their asset acquisition needs. We don't have to explain the benefits of dealing with a specialist in any industry, so the firms that offer lease financing in Canada is where you will find financing products that work for you.

We also don't need to mention of course that if your firm is a start up, smaller in size, or perhaps going through some challenges... well... guess what - you are still a 100% candidate for lease and financing loans.

Many owners and managers searching for equipment financing for their business needs are under the pre-conception that certain assets can't be financed. That's where you ability to quickly focus in on a specialized firm that provides business lease solutions for your acquisition - and that includes computers, office equipment, plant and machinery assets, vehicles, and even intangibles such as software!

We are always intrigued by the reasons business owners offer up for leasing consideration - however when you think about it all those reasons come down to several key points - cash flow and working capital management, tax and accounting issues, matching the use of the asset to its estimated life. While every Canadian business owner likes to feel their needs are unique we are pretty sure that if you walk through those 3 key areas we noted above you will be able to significantly simplify your business equipment financing.

Is there a way to simplify the entire process? There sure is. Simply view what we will call ' the big picture ' around your transaction. Envision it as follows - your application and exchange of financial info with your lessor, discussion or correspondence leading to approval, documentation, and then finally funding and payment... which is often simply the payment made to your supplier, allowing you to receive the asset and put it to work for cash flow and profit generation.

There are hundreds of equipment financing and lease financing firms in Canada. We are quite sure you do want to ' simplify ' your business financing so speak to a trusted, credible and experienced Canadian business financing advisor who can ensure your business lease is positioned properly, approved, and funded. Now you are getting your share!




Stan Prokop

is founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com The company originates business financing for Canadian companies and is a specialist in working capital, cash flow, and asset based financing. In business 11 years the company has completed in excess of 100 Million dollars of financing for Canadian corporations of all size. For information on Canadian business financing and contact details please see:

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



Article Source: http://EzineArticles.com/6077333





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.

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 '

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.








Article Source: http://EzineArticles.com/6077333

Why The Sale Leaseback Lease Strategy Is Overlooked And Underappreciated When It Comes To Equipment Financing Loans

Could The Sale Leaseback Be Your Company’s Light bulb Moment?

OVERVIEW – Information on why equipment financing loans or a lease via a sale leaseback strategy is one of the most overlooked business refinancing strategies





A Sale Leaseback , when it comes to equipment financing loans can sometimes be a ' light bulb moment ' when it comes to the answer to a working capital and cash flow solution without taking on additional external debt.

Why is this Canadian business financing strategy sometimes overlooked, and often under utilized? And, even better, how does it work? Let's dig in.

The sale lease back has been around a long time. It typically is used for either refinancing of fixed assets, and in some cases real estate .In both of those cases the same principles apply. And more often than not it’s a way to improve profits and utilized assets that otherwise are only sitting on the balance sheet.

The key to a sale leaseback transaction is to understand some of the basic accounting rules around the transaction. As importantly it's also key to ensure you pick the right ' amortization' or ' term’ for the lease or bridge loan that will finalize your transaction...

A quick example of things going wrong?

Let's say your company wishes to do a lease back on your technology assets. It's a solid strategy employed by many. However, tech assets depreciate and become obsolescent faster than many other assets, so refinancing them and picking an amortization of, for example, 5 years doesnt make a lot of sense.

Simply because you will still be making payments on assets that probably need to be upgraded and changed while your firm is still locking into a sale leaseback refinancing payment. So understanding what we call the ' useful life' of the asset is key to a business owner/financial manager’s success in this type of refinancing.

Generally the lease or loan you enter into in this type of transaction should have some common sense attached to it. You need to understand the value of the asset, the costs involved in the refinancing, and some of the accounting and tax issues involved in such a deal.

The key benefit of equipment financing loans or a lease that solidifies your refinancing is the cash it will bring to your balance sheet. You also need to convey to the lessor / lender what the proceeds of the refinancing will be used for, as you do not want it to be viewed as a ' cash grab' for all the wrong reasons.

Have we covered off how the sale leaseback works? In its essence it couldn’t be simpler. Assets you already own that are not encumbered, i.e. they are lien free, are sold back to your lessor/ finance firm. The title transfers to the lender and passes back to your company once payments are completed under your lease back.

In almost all cases some sort of ' appraisal’ value needs to be tied to the deal - both you and the lender benefit from knowing the transaction makes sense re the asset values. And almost all assets can be refinancing via bridge loans, leasebacks. Rates will always be commensurate with overall company credit and asset quality.

If you want to investigate the ' light bulb moment' around the benefits of equipment refinancing loans seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in ensuring you have not overlooked this great refinancing strategy to enhance cash flow.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian companies , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded in 2004 - Completed in excess of 90 Million $$ of financing for Canadian corporations . Info re: Canadian business financing & contact details :

7 Park Avenue Financial = Canadian Sale Leaseback Expertise


Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

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 '

Stan Prokop