Equipment Leasing and Lease Finance Loans in Canada

 

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YOUR COMPANY IS LOOKING FOR CANADIAN LEASE FINANCING! 

EQUIPMENT LEASING SOLUTIONS IN CANADA

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        Financing & Cash flow are the biggest issues facing business today 

                              ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

 

  

Leasing Equipment and Lease Finance in Canada: The Key to Unlocking Growth and Profitability

  

 

INTRODUCTION

 

In the world of equipment lease finance and asset loan solutions in Canada, businesses often face a critical question: Should they pay with cash or opt for lease finance?

 

Leasing companies offer a compelling option to finance asset acquisitions, and thousands of firms of all sizes in Canada continue to embrace this method to fuel their growth, boost profits, and stay competitive. In this article, we will explore the reasons behind the popularity of equipment leasing, the different types of leases available, and the advantages that lease finance offers Canadian businesses.

 

 

  

THE CHALLENGES OF ACQUIRING EQUIPMENT AND TECHNOLOGY FOR YOUR  BUSINESS   

 

Acquiring new equipment comes with a significant cost, which can strain a company's cash flow and working capital needs. Regardless of the firm's size, the capital budgets required for purchasing equipment can drain the resources that businesses would instead use to fund daily operations and growth. This challenge has led many companies to consider alternative financing options, and equipment leasing is a viable solution.

 

BENEFITS OF LEASING EQUIPMENT IN CANADA

1. Improved Cash Flow Conservation and Working Capital Management: When a business opts for equipment leasing, the leasing company pays the equipment supplier directly. This eliminates the need for a significant upfront cash outlay, preserving the company's cash flow and working capital for other critical expenses and investments.

2. Simplified Purchasing Process: Leasing streamlines the equipment acquisition process by allowing the leasing company to handle payments directly to the supplier. This reduces administrative burdens for the business and ensures a smooth and efficient transaction.

3. Effortless Budgeting: Lease payments are fixed and predictable, making it easier for companies to budget their finances accurately. This stability helps businesses plan their expenses more effectively, avoiding unforeseen financial challenges.

4. Access to Larger and More Expensive Assets: Lease financing enables businesses to consider acquiring higher-cost assets beyond their immediate purchasing capabilities. This includes advanced technology and software that can significantly enhance the company's operations and competitiveness.

5. Flexibility for Business Growth: Leasing allows companies to upgrade to newer equipment or technology as needed, ensuring they stay up-to-date with industry advancements. This adaptability helps businesses maintain their competitive edge and respond to changing market demands.

6. Preservation of Credit Lines: Leasing finance allows businesses to conserve their credit lines. This is especially beneficial for small and medium-sized enterprises (SMEs) that may need credit facilities for other critical business needs.

7. Tax Benefits: Lease payments may be treated as operating expenses, potentially providing businesses with tax advantages. Consulting with a tax professional can help companies fully understand the tax implications of equipment leasing.

8. Reduced Risk of Equipment Obsolescence: In rapidly evolving industries, technology and equipment can quickly become outdated. Leasing allows businesses to avoid owning obsolete equipment, as they can upgrade or return the leased assets at the end of the term.

9. Enhanced Asset Management: Lease financing often includes options for bundling services such as insurance, maintenance, and training into the lease agreement. This comprehensive package simplifies asset management and maintenance responsibilities.

10. Speed and Convenience: The leasing process is generally faster and more straightforward than securing traditional financing options. Quick credit approvals and minimal documentation requirements enable businesses to acquire the necessary equipment promptly.

 

 

 

  

UNDERSTANDING FINANCE LEASES/CAPITAL LEASES AND OPERATING LEASES   

 

 

In Canada, there are two primary types of equipment leases: operating lease and finance leases (also known as capital leases).

 

Operating leases, often called fair market value leases, offer lessees significant flexibility at the end of the lease term, allowing them to choose whether to buy, upgrade, or extend the lease. On the other hand, finance leases are an attractive option for those who wish to own the asset at the end of the term. The choice between the two types of leases in equipment lease financing in Canada depends on the business owner's specific needs and preferences.

 

UNLOCKING BUSINESS CAPITAL FOR ASSET ACQUISITIONS

 

Different industries have varying levels of capital intensity, and businesses with high capital needs may constantly struggle to raise additional equity. Equipment leases and lease finance provide a solution by enabling companies to conserve cash and equity. In a competitive environment, staying up to date with equipment, software, and other assets becomes crucial, and leasing offers an effective way to achieve this without exhausting financial resources.

 

  

LEASE FINANCING IS VERSATILE - HERE'S WHY!  

 

Lease financing extends beyond traditional equipment purchases. Including the absence of a small or no down payment, this business financing solution also covers miscellaneous costs, such as insurance, maintenance, services, and training, which can be easily bundled into the lease transaction. This flexibility makes lease financing appealing for businesses seeking a comprehensive solution to their asset acquisition challenges.

 

  

LEASE FINANCE VERSUS OTHER OPTIONS   

 

Canadian business owners and financial managers have several options when acquiring equipment. They can pay with cash, draw down on the company's line of credit, explore equipment loan solutions from Canadian chartered banks, or lease the equipment. While traditional financing options may have their merits, lease financing for the business owner often emerges as the most favourable choice due to its speed, simplicity, and competitive interest rates on monthly payments structured to cash flow.

 

  

  

KEY ADVANTAGES OF LEASE FINANCE    

 

Interest rates in the leasing industry in Canada are currently at all-time lows, making lease capital accessible to businesses with varying credit qualities for lease equipment needs.

Lease rates may vary based on credit quality, transaction size, and asset quality. Additionally, the ease of application and simple documentation in the leasing industry ensures quick funding, with some transactions even being processed without financial statements. This speed and efficiency in lease finance approval provide a significant advantage over traditional financing methods.

Leased equipment that is now owned by the company can also be refinanced.

 

  

  

 7 PARK AVENUE FINANCIAL LEASE SOLUTIONS    

 

For every small business in Canada facing asset acquisition challenges, equipment financing can play a crucial role in unlocking growth and success. Companies can benefit from partnering with a reliable, experienced lease financing advisor like 7 Park Avenue Financial. We can offer customized financing options that align with the unique needs of each business, providing a valuable proposition that fosters growth and profitability.

 

 

CONCLUSION

 

In conclusion, leasing equipment and utilizing lease finance in Canada present a compelling approach to address the challenges of equipment acquisition and capital management.

 

By opting for lease financing, businesses can conserve cash, access the latest technology, and stay competitive in their respective industries. The versatility, simplicity, and efficiency of equipment leasing agreements make it an attractive choice for businesses of all sizes seeking sustainable growth and long-term success.

 

If your business needs equipment financing, consider the benefits of lease finance and explore the expertise of  7 Park Avenue Financial,  a trusted, reputable lease financing advisor and business funding provider,  helping your company make the most informed decision on business financing needs.

 

    

FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION    

 

1. Q: What is equipment leasing, and how does it differ from traditional equipment purchasing?  Equipment leasing from lease providers involves renting/using equipment for a specific period, while traditional purchasing entails buying the equipment outright. Leasing offers more flexibility and cost-saving benefits.

2. Q: Why do Canadian businesses prefer equipment leasing over other financing options? Leasing conserves cash flow, enhances working capital management when companies consider an equipment purchase and allow for easier budgeting. It also provides access to the latest technology and helps businesses stay competitive.

3. Q: What are the two kinds of equipment leases available in Canada? A: The two types are operating and finance (capital leases). Operating leases offer flexibility at the end of the term, while finance leases provide an option to own the asset after the final lease payment is made.

4. Q: How does lease financing speed up the acquisition process compared to traditional bank loans?  Lease financing via a lease broker offers quicker approval times and simplified documentation, and, in some cases, it does not require financial statements, making it a faster and more efficient option.

5. Q: How can a lease financing advisor assist my business in making equipment acquisition decisions?  A lease financing advisor can offer tailored financing options for purchasing the equipment a company requires based on the business's needs, credit quality, and asset requirements, ensuring the most suitable solution for your growth and profitability.

 

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

6 Reasons To Consider Business Equipment Financing . Asset Finance Power Tools For Your Company

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INFORMATION ON BUSINESS EQUIPMENT FINANCING IN CANADA - THE LEASING SOLUTION EXPLAINED!

Business equipment financing continues to be by far the most popular method of asset finance for the Canadian company wishing to make fixed asset acquisitions. Virtually every type of asset class can be financed, and the lease finance industry as a whole is not prejudiced when it comes to industry types - every industry utilizes this financing mechanism.

The ability of Canadian companies to realize the benefits of this key aspect of Canadian business financing makes it more popular everyday. Leases are often confused or lumped in together with equipment loans and it’s at this time you need to know some of the basic aspects of accounting, tax and legal when it comes to differentiating between the two.

Operating leases tend to sometimes bring the most amount of confusion to the table, simply because when they are not structured properly they could be treated as a loan and additional debt on your balance sheet.

Let's examine 6 powerful reasons to use business equipment financing in Canada. Reason # 1 is certainly not our most favorite, but it tends to be the clients, and that’s simply the issue surrounding rates and payments.

Clients like both of those to be... low! While many other aspects of equipment leasing in Canada tend to be as important business owners and financial managers always seem to be looking for the most economical way of acquiring assets. There is an old joke among leasing companies that is unfortunately at the expense of you the lessee. It's simply that any firm can guarantee you the lowest rate, if, and it’s a big if... you sign their lease contract. That of course infers that many other scenarios come into play when it comes to the proverbial monthly payment.

The reality also is that when you focus in on rates only you miss many of the value add dimensions of business lease. some of which are equally as important as we have said. Bottom line, don't always thing asset finance via leasing is a commodity!

Reason # 2 to consider is the whole issue of assets, or fear of assets. Naturally you want to also separate the issue of the price of the asset from the financing - car dealers are masters of that one when it comes to intertwining them as we as consumers know. Leasing allows you to focus on the asset itself and the productivity that comes from it. Leasing provides a great return on investment when you consider the asset in terms of return on investment and cash outflows.

Reason # 3- Managements pay cheque ! What do we mean by that? Simply that many medium size and larger corporations compensate management on finance lingo such as EBITDA. Depending on how your management is measured when it comes to economic performance and ROI the right type of lease strategy can enhance that calculation. Another quick example, operating lease transactions reduce capital outlays.

Reason # 4- It’s all about the money ... or the cash flow conservation. Quite frankly many firms have to lease, they don’t have a choice, because when it comes to working capital you are conserving it via a business equipment financing strategy. Down payments are also eliminated or diminished. 100% financing is very often achievable via lease asset finance.

Reason # 5- Your balance sheet. Properly structured operating leases, aka the ' lease to use ' option can enhance your balance sheet. Even if bankers and other lenders add the assets back in them quite often will not add in the entire original balance. Technology acquisitions in Canada in computing, telecom, etc are perfect for operating leases, as they eliminate technological obsolescence.

Do we have a final reason today? We sure do, and it’s simply the issue of convenience. An asset finance company can approve and structure a proper lease for your firm in a matter of days. Small transactions in the industry are actually often approved and financed within 24-48 hrs! You can easily these days perform a lease vs. buy calculation and also bundle in numerous other services into your transaction.

Consider speaking to a trusted, credible and experienced Canadian business financing advisor to ensure you're focused on our 6 great reasons to consider business equipment financing.






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.



Stan Prokop

Is Your Company Properly Exploiting Equipment Lease Financing In Canada ?

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We previously wrote on some of the challenges that Canadian business owners and financial managers face in getting successful lease equipment financing in place for their assets and capital expenditures. The current difficult economic environment makes it more challenging than every for Canadian business owners to get the proper rate, terms, and structure that they deserve.
Success lease equipment financing requires a working knowledge of what the lessor is looking for in a transaction.


Owners can safely assume that the lender is doing significant work on financial statement analysis to satisfy them they are making a proper financing decision with you firm. Included in this analysis is strong emphasis on cash flow history and projections, operating efficiencies of your firm as measure by industry accepted ratios, and balance sheet analysis with respect to the amount of debt your firm is carrying, etc.


In our previous article we suggested that business owners should be aware of some key 'structuring options 'that lenders use when they are contemplating an approval that they are not 100% comfortable with. These options, previously discussed were:


- Utilizing higher rates to compensate for risk
- Use of Security Deposits
- Use of advance payments
- Structuring higher payments in the earlier years of the lease
- Shortening the lease term to offset long term risk


Business owners should be aware of some additional enhancements that can further a financing approval when your firm might not fully qualify for your desired amount of financing and overall structure.
Let's looks at some of those additional enhancements that compliment the 5 areas we have noted above.


Business owners who are not familiar with some of these financial nuances should employ the use of a trusted leasing advisor with credible experience, thereby significantly increasing their chances of getting a lease financing approved.
Business owners might not always be comfortable with providing a Personal Guarantee on the transaction; however personal guarantees are a clear fact of life in the Canadian business financing environment. The logic of the lender, in this case your equipment lessor, is that you are more motivated to make those payments if you are personally obligated in the matter also.

Naturally companies incorporate to avoid personal liability but business owners are often called upon by lenders, lessor, etc to provide a guarantee. It goes without saying that the lender will also want to validate the quality of your personal guarantee.
In many cases you as a borrower, or the lender might request, additional collateral on the transaction.

This would be collateral that is currently unencumbered, but in effect shores up the lessors overall position, allowing your transaction to be approved. In many cases you will be required to provide some form of documentation (usually an appraisal) of the additional asst.


In some circumstances an effective additional collateral might be credit life insurance on the transaction - in a smaller of mediums sized Canadian firm the lender / lessor may rely on that insurance in the event something happens to the owner, that something being ' death ' of course!


Not all Canadian business owners know that in some cases the manufacturer that you may be purchasing and financing the equipment through is in some cases agreeable to providing a limited or partial guarantee on your transaction. They are making a sale, generate profits from the sale to your firm, and may be able to remarket the asset if the lessor requests assistance in this area.


Finally, in some cases your lessor may request a letter of credit or Certificate of Cash deposit as additional collateral. In the authors experience this is rare, as your firm traditionally would note want to encumber cash in such a manner.
So what's our bottom line? It is simply that lease financing can be a challenge, but if you work with a lessor to offer up and co operate on some manner of structuring, as outlined above, then your chances of successfully getting a lease financing approval increase immensely!








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.



Stan Prokop

Canadian Equipment Leasing - How To Get The Best Lease Deal!

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Strategies for Successful Equipment Financing

Information on Canadian equipment leasing finance . Achieving the best finance solution for an equipment loan requires knowledge of these key aspects of lease financing

As a Canadian business owner and financial manger you need a certain amount of skill and knowledge to successfully source and negotiate a Canadian equipment leasing strategy. Equipment financing in Canada can be simple or complicated – the business decisions you make around the financing and acquisition of your asset involves a number of factors which have to do with credit quality of your firm, the way in which you will account for the lease, as well as any business or legal considerations around the transaction.


From the viewpoint of your lessor we can probably safely say they are most interested in simply getting paid back, so the ability to present your firm as a reasonable credit risk will allow you to get the asset and amount you want approved, and, as what seems most important to many of our clients, you will get what we would like to call a ‘competitive rate and structure. You also want to know if you are making the right financing decision as opposed to considering an outright purchase or some type of term loan for your asset financing.

So at the end of the day you want to know what type of lease and benefits are available to your firm, and who is the best ‘lessor partner’ for this particular transaction.


We meet with many clients who spend countless hours, if not longer sometimes in talking to a large number of lease companies on any given transaction. What they don’t understand ( other than wasting their time ) is that lease companies in Canada are organized by asset and credit quality, and many lease firms are funded in different manners, and in some cases offer only one type of lease , which is not necessarily the lease financing you might need for your asset finance decision.

So how do you wade through all this clutter and noise? It might be proper to consider working with an expert who knows the Canadian lease industry, and is a trusted, credible and experienced advisor to your firm in this area.
When we meet with or get a call from clients who have been out in the market ‘ shopping ‘ for a lease it becomes very clear that they appear very un organized and have spent an inordinate amount of time .

Also, they are looking for ‘ all ‘ the ‘ benefits’ of lease financing in Canada, when in reality only a certain number , or even a limited number of those benefits might apply to their transaction . Countless firms recount stories of having paid too much for a lease or having focused on an option that ultimately had limited benefit to their firm.

Again, understand the market, or work with someone that does.
Your ultimate goal in a lease financing strategy in Canada is to ensure you have, at the start, outlined what makes sense for your firm regarding the lease structure and the appropriate partner. Firm you need to work with.


When you are soliciting lease pricing you should do that selectively with firms who are interested in your overall credit quality, asset type, and dollar size of your transaction. We tell clients to get a ‘market sense ‘of the type of lease financing that is available as the industry has the ability to use jargon that can be considered confusing to say the least!


One strategy you can use is to outline a basic lease financing request and solicit a number of bids – by clearly showing who you firm is, the asset you wish to finance, and the dollar value of the transaction, and the type of lease you require (there are two types) you can quickly eliminate a lot of wheat from the chaff!


In summary, understand what key benefits you want to achieve from a Canadian Equipment Leasing transaction get a sense of who can deliver on those options, and ensure you have a level playing field for lease firms you might want to work with.





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.



Stan Prokop

What You Must Know About A Lease Vs Buy Business Finance Decision For An Equipment Lease

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Need Help for Equipment Leasing Decisions ?


Information on the equipment financing in Canada and the business owners' lease versus buy decision - Make the right equipment loan or lease decision is the key acquiring and financing business assets

Business owners and financial managers in business finance are always faced with the same decision in acquiring an equipment lease, namely should we buy or lease. Technically this is referred to in the finance books as the infamous ' lease vs. buy 'decision.


Let's examine some of the key points and facts you need to consider in that decision. Naturally the good news is that an equipment lease can be used to acquire almost any type of equipment or asset - that includes equipment, machinery, buildings, etc. More often than not it pays to seek a business financing advisor who is well versed in the benefits and nuances of equipment finance.

Working capital and cash flow tend to be the main drivers of the lease vs. buy decision when we talk to clients. It goes without saying that most Canadian leasing companies probably have a lower cost of capital then your firm based on their borrowing capacity and the way they are funded. Therefore that lower cost of capital becomes a positive advantage in the lease vs. buy decision.

In many cases the lease vs. buy decision will be very close and the actual non financial benefits of an equipment lease will drive your final decision. For example, although you might be in a position to construct a favorable buy versus leasing model you might not want to use business lines of credit to access the cash needed to acquire the asset.

Also one of the key tenets of finance is that you should use long term funds to fund long term assets - that just makes common sense. Simply speaking you don’t want to purchase an asset as opposed to l easing it and find out you might not be able to make payroll on Friday because your line of credit is maxed out!

As we said, some of the pure mechanical decisions around the lease vs. buy tool (there are numerous on line calculators which are references as lease vs. purchase analysis tool) can often be over ridden in your analysis by non financial considerations. For example, let’s say you clearly don’t want to keep the asset at the end of the term of its useful economic life. That’s where an equipment lease makes total sense, as it gives you the ability to return, extend, or even purchase the asset if in fact you end up deciding to purchase and keep it if your circumstances change.

Business owners might want to consider talking to their accountant or a business financing advisor on larger capital asset acquisitions. Some of the inputs required in the lease versus buy model include items such as the actual interest rate the lease company is charging you, your tax rate, the projected increase in profit via use of the asset, the depreciation expense you can take on the asset and your overall cost of capital which is calculated by analyzing your debt and equity in the business. Whew!! That’s some fancy accounting and it can best be left to your accountant or advisor on larger asset financing acquisitions. However the good news is that a simple computer spreadsheet handles all this for us nicely!

In summary the leasing versus buy tool in business finance can be a great asset in your financing decisions for new assets. Adopt Warren Buffets key approach, which is simply to determine if the asset financing opportunity delivers a solid return on equity for your business.

Yes our tool we outlined is important, but at the end of the day use business common sense to analyze the equipment lease opportunity and blend it into your overall business financing strategy .






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.



Stan Prokop

Need Equipment Loan and Lease Financing ? Re-program Your Leasing Finance Strategy Today !

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Look at Equipment Financing in a Whole New Light !



Information on equipment loan financing and lease finance strategies . How to re program your leasing strategy to maximize benefits !

Sometimes you just need to re-program things to make them work better - that's what we're also suggesting when you review your lease finance and equipment loan financing strategies for your company.

Let's examine how you can maximize your leasing strategy to attain maximum benefits and minimum hassle! That's clearly a win win strategy.

Focus clearly on eliminating what we can only call the ‘hassles’ of dealing with other types of financing , It's all about ' time' and your ' business bandwidth ' today when you are visiting a new asset acquisition . Without a doubt we can state that leasing equpment is by far the quickest method of obtaining an approval, satisfying both your vendors need as well as your own time constraints.

With only a very basic financial calculator you can quickly review all your lease finance options - the favorite question of almost all clients is: ' What will my monthly payment be?’ It's about time for you to answer that question yourself, and make sure that your cash flow and working capital remain intact on the equipment loan financing you are contemplating. How? Just remember that the only elements to any lease are: term, rate, amount financed, payment, and end of term option. If you know any 4 of those you can always solve for the final item, which in our case is payment. You should assume an interest rate that is consistent with your firms overall credit quality.

Business owners and financial managers should view their lease finance acquisitions in the context of your overall financial strategy. You might need to’ re - program ' your thinking on buying and paying for assets outright . Doesn’t it make more sense to keep your cash and line of credit reserves intact, and match the useful economic life of the asset you are acquiring to a predicable cash outlay?

A quick way to’ re program ' your leasing needs is simply to always use the same business template for each asset you are acquiring . They key aspects of that decision template, if we can call it that are: cash flow budgeting re the monthly lease payment, reviewing the asset in the context of not having to draw on your business operating line of credit, determining how long you will use the equipment for (thereby matching term and payment) and finally, factoring in balance sheet and tax advantages into your asset acquisition decision.

What's the biggest’ re programming' issue with most firms . It’s simply their mild obsession with ' rate ‘. Yes a rate has to be competitive, but view the lease financing rate in the context of the current interest rate environment , the challenge of getting traditional bank financing, and the fact that in the current environment rates are probably going up and not down . The real reality is that you determine your own rates in your new leasing re programming strategy! That’s because the largest factor in determining rates for equipment financing is the manner in which you properly present your overall credit quality and financial health.

In summary, equipment loan financing, aka ' leasing' has been around for over a hundred years in North America. Take a hard look at why you finance your assets, reprogram your strategies around benefits and ' how to ‘, and acquire your assets with the knowledge you have made the best financial decision for your firm. Need help ? Given a choice we’ll take an expert over a rookie any day ! Speak to a trusted, credible and experienced Canadian business financing advisor who will work on your ' re programming strategy with you!








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.



Stan Prokop

Equipment Leasing & Lease Finance In Canada : Financing Your Assets For Growth

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Equipment Leasing Works : We Told You So!

Information on the Canadian equipment leasing and financing industry .How to utilize the services of experts in this area to save thousands of dollars

Equipment Leasing and Canadian Lease Financing generates profits for Canadian business via use of assets that your firm requires to run its business and stay competitive.

Lease rates in Canada have finally normalized somewhat after the global economic tensions of late 2008 and 2009. Liquidity has come back into the markets and even the government in Canada has stepped in to assist the actual companies that were doing the financing.

We never fully disagree with a client when a firm tells us that the overall interest rate is the most important thing they consider in a lease vs. purchase decision. However, at the same time there are a number of other, we would actually call them ‘critical ‘factors in evaluating and getting approved for lease financing.

Customers often weight the lease decision against two other key issues, their ability to purchase the equipment outright and secondly consideration of a financing alternative such as a bank loan. Naturally all three strategies – leasing, purchasing outright, and financing via a bank loan still get you the equipment.

Lease firms in Canada tout the benefits of leasing and line them up directly against your other two alternatives. Bank financing has always been difficult to get for any small to medium business (in the last year or two large business had challenges also!) and when you choose to finance your equipment through a bank loan a number of key factors come into play. They include usually a down payment, plus the fact that your new equipment loan gets bundled into your overall banking relationship, loan and ratio covenants, plus your overall credit facility limit.

If you are comfortable with that naturally the bank rates are very attractive. In general for a decent quality credit in Canada you can expect to pay two to three per cent more for a financial lease from an independent finance firm. However that additional premium may be well worth it when you consider some of the factors we noted above.


In Canada credit quality drives a large part of the final rate. The good news here is that companies with decent to good to very good credit will always achieve some of the best rates. But more importantly we point out that if your firm has challenges, little or no funds for a down payment, or a higher dollar acquisition you can still get lease financing consideration.


The Canadian leasing market is very fragmented so we strongly recommend to clients that you utilize the services of a trusted, credible and most importantly , ‘ experienced ‘ lease and business financing advisor who can help you navigate the maze of Canadian lease firms . Their relationship with the best financiers in your industry can save you many thousands of dollars.


Let’s prove our point with a quick example. Your firm doesn’t have the contacts or necessary technical knowledge to navigate the Canadian lease environment. You note the industry has a trade association called the CANADIAN FINANCE AND LEASING ASSOCIATION. That website shows hundreds of small and larger firms. You could of course contact each firm, explain your needs, provide them your financial information and then spend hours, days, etc on negotiations and knowledge assimilation relative to your particular needs for equipment acquisition.

However, utilizing a lease finance expert will give you instant access to probably one or two of the best lessors suited to your asset, your industry, and your firms overall credit quality.

If your advisor delivers only a little on overall rate, terms and structure you will save thousands of dollars, plus gain invaluable advice along the way on which lease option to choose ( there are two, capital and operating ) .





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