A Lease Finance Company Success Story : Identify The Right Equipment Financing Companies

Can You Name The 6 Sources Of Lease Financing In Canada

OVERVIEW – Information on sources of lease finance in Canada . Identifying the right equipment financing companies saves time , money and provides you with the best rates and terms for asset finance needs

Equipment financing in Canada; as a Canadian business owner or financial manager can you properly identify the best lease finance company solution for your asset acquisition requirements? Making the right choice and decision will make your firm a ' success story ' when it comes to asset finance needs. Let's dig in.

There are actually 6 different types of lease financing sources in Canada. Which one if right for you depends on a couple of key factors -

Size of the asset / financing in $

Your overall credit quality

The nature of the asset


Although there are different asset finance choices when it comes to who you will deal with it's important to note that your process will relatively always be the same.

That process includes negotiating pricing, terms and lease documentation. In transactions less than 100k quite often a simple one or two page lease document suffices. For larger transactions you might be required to address more complex documentation but the industry prides itself on keeping things simple.

Other issues you have to cover off in a ' normal ' process include determining how and when you vendor/supplier will be paid - in most typical situations the lease finance company pays your supplier directly.

Remember that in any lease transaction your payments will begin when you have accepted the asset as being delivered/operable, etc. Remember also that while most clients we meet focus on starting a lease it's critical to focus on and understand end of term options. They might include upgrading, returning, disposal, etc.

So, those 6 equipment financing sources?!

They are commercial leasing companies, captive financial firms that are aligned with a particular mfr, your vendor itself (some vendors will provide asset financing of their products), insurance companies, banks, and finally a lease advisor who is properly aligned to ensure you select the right lease entity.

Which solution is best for your asset needs? The answer lies in issues we've discussed already, re $ value, your firms ability to demonstrate commercial credit worthiness, and the type of asset you are financing.

Remember that all 6 different solutions have different focuses re geography serviced, deal size appetite, types of assets they prefer to finance, and credit strength preferences. When it comes to credit quality almost any asset can be financed - that flexibility comes from the ability to alter terms, get a down payment, or address additional collateral requirements.

A proven way to choose the right lease company is to ensure you're working with a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
- ensuring your asset finance needs become a true Success Story.



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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT LEASE & FINANCING 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
























Stan Prokop

Is There A Hole In Your Leasing Finance Sidewalk ? Get A Canadian Lease Finance Company

Winning With A Proven Equipment Finance Strategy

Information on maximizing leasing finance for Canadian companies who want to ensure they are working with the right lease finance company and receiving key financial benefits not understood by all .



A hole in your leasing finance sidewalk? It's an interesting play on words around a current popular book making the rounds. We thought it was a neat analogy for Canadian business owners who want to make the most out of a lease finance company strategy... but instead keep making the same mistakes when it comes to being successful in equipment financing.

In essence their equipment lease strategy becomes a hole in their business, and managing what might seem like a complex process leads to that ' hole in the sidewalk '.

So how does one fix that hole? It's simply by focusing on taking control of your lease strategies and maximizing all the benefits around the financing of the assets in your business. It's kind of about working smarter, not harder.

We of course can forgive the average Canadian business owner and financial manager for thinking that anything to do with a lease finance company might seem complex. Naturally we all cant be experts in every field, and we met hundreds of firms over the years who utilize a lease finance company for asset acquisition but constantly either make the same mistakes or don’t consider issues they need to think about .

Probably the best advice we give to clients when it comes to the entire process of equipment finance is that they should try and view the whole process as a journey.

What does that journey involve? Well it becomes a situation wherein you have to pick the right partner firm evaluate the right type of lease for your needs, and then work through credit approval, documentation and final funding.

And just when you think its over, guess what, it isn't. That's because one of the greatest ' holes in the sidewalk ' for Canadian business owners utilizing equipment finance is the whole issue of end of term, i.e. the bank end of your lease transaction.

What then does the Canadian lessee need to consider? He or she clearly wishes they could eliminate some of those financial ' holes '.

To do that you need to either understand yourself, or bring in an expert on who are the real players in the Canadian marketplace. Leasing assets in Canada is clearly firing on all cylinders these days, and knowing who do deal with is critical.

You also want to understand how lessors make their money. Of course there is the implied interest rate in your transaction but issues such as down payment, residual values, etc play a key role in your overall financial success on the transaction.

Is leasing always the best choice? It might not be, especially in certain key areas such as a sale leaseback transaction, where a term loan might make more sense for a variety of reasons.

Wasn't there a Beatles song on SGT PEPPER called ' FIXING A HOLE '? Consider doing that, financially speaking, and seek and speak to a trusted, credible and experienced Canadian business financing advisor who can help you meet leasing finance needs in Canada.





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

The Evolution Of The Sale Leaseback Transaction In Canada . Get The Most From Your Lease Finance Company

Considered This Re- Financing Method?

Information on the Sale Leaseback transaction in Canada and how business owners and mangers can maximize the benefits of a lease finance company .



The sale leaseback transaction in Canada. It's back. Let's examine the resurgence of this unique financing transaction via a lease finance company or other financial firm.

Canadian business owners and financial managers, as owners of certain asset classes, have the ability to enter into a sale lease back scenario. It couldn't be more basic - you sell the asset to a buyer, typical a finance firm and that firm immediately becomes the lender or lessor of your transaction. And that asset is of course still there!

The two key elements that are happening should be quite clear - you have received cash flow and working capital for your firm on an asset that was unencumbered, and at the same time you are still ( hopefully !) using the asset to generate profit and operational capabilities for your firm .

In essence you're getting capital and cash flow from an asset that was otherwise non-performing. It's important to point out that your balance sheet still stays intact from a viewpoint of leverage, and in certain cases can actually improve.

It should go without saying that the financing can be a combination of one asset, or even different asset classes. For instance you could do a sale leaseback on your premises and the equipment if you are a manufacturing firm in Canada.

We referenced earlier the ' evolution' of the sale leaseback. In recent years a lease finance company was somewhat more reluctant to enter into such a transaction; if we could be blunt and straightforward (that’s our style!) transactions of this type were viewed as a ' cash grab' by firms who had some significant challenges. Bottom line it wasn't readily apparent the transaction made sense... for the lease finance company or other lender!

We like to view the transaction as simply one additional tool kit in the business owner’s pouch of financing or re-financing alternatives. If your firm is expanding, or is in a position of having to repay or arrange some other business debt then the transaction might make significant sense. Other times the new capital simply can make your business either grow or be more efficient.

Another way of looking at it is from the viewpoint of your core competencies - do you in effect necessarily want or need to be an owner of certain assets. just for the sake of ownership.

Naturally it's critical to determine the amount of capital you can extract from such a transaction. Business owners should ensure, either on their own or through an advisor, that they have a solid understanding of the current market value of the asset. However, if truth were to be told (again, that’s our style!) You will probably be required to get an appraisal done at your own cost at the request of the lease finance company or other lender.

Appraisals themselves have many nuances, and this is simply one more solid reason to ensure you have some solid advice in this area. Lenders or lessors focus on the liquidation value of the asset in a ' worst case' scenario. Business owners tend to view the asset in terms of its value today and in the business in the future. There is often a large difference between those two points of view!

The sale leaseback can also often enhance your operating ratios such as debt to equity, etc You definitely want to be in a position to understand the effect of the transaction from an accounting viewpoint, as well as ensuring you have the permission from any other ' secured lender' to complete the transaction properly .

When working capital, cash flow, growth, or balance sheet issues force you to consider alternative methods of raising capital don't forget those ' treasures in the barn ' - i.e. the assets you have in your firm that you own already.

Speak to a trusted, credible and experienced Canadian business financing advisor on how the sale lease back transaction has evolved into a solid business financing tool your firm can use today.







Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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