Top 4 Most Overlooked Benefits of Leasing of Equipment As a Business Finance Strategy

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Information on four key benefits with respect to leasing of equipment as part of your overall business finance strategy in Canada. How lease financing benefits can help you reduce and overcome capital acquisition risk and challenges. Make lease financing work for your firm!

Most Canadian owners and business managers wouldn't think of always paying cash for equipment and other capital acquisition needs. They also can't imagine, in the current economic climate, paying cash for everything. Whether you are in an industry that is highly capital intensive, or if you simply on occasion need to upgrade or purchase new equipment the leasing of equipment should be considered as an effective overall financing strategy for your company

Naturally no form of business financing in Canada could be considered perfect and met absolutely every one of your needs, but let's examine what are considered to be normally the top four benefits of equipment leasing. Naturally you want to ensure you are dealing with the right type of lease firm and you have also carefully examined your rights and obligations under the business lease.

Anyway, benefit 1. Flexibility. The reality is that working with the right lease partner firm should provide you with the flexibility you want in your transaction. Flexibility is of course a broad term, but we are basically referring to the type of lease that works best - for your firm! Not everyone else's. That flexibility comes in the form of low or no down payment, monthly payment structuring options ( here are possibilities abound!), balance sheet optics around the amount of debt you can carry without getting your bank offside. Flexibility also comes in the form of the ability to return the equipment or extend the lease for a pre agreed period of time.

Benefit # 2 might well be called Cost efficient. The last thing you want to be doing is getting your firm locked into a long term lease on a depreciating asset - and the reason you lease financed the equipment in the first place is that you as a Canadian business owner and financial manager recognize that the equipment ultimately will probably have no value after its economic life is completed.

If the business world was slow moving and predicable you would never have to worry about competition, changing technology, etc- however things don't work that way and as your needs change over time you can using equipment financing as the tool to address those needs.

Benefit 3- Tax benefits! We hate getting into long accounting and financial statement dissertations when we are lease financing info with clients, but the reality is that leasing of equipment as a business finance strategy has accounting and tax benefits re write off strategies around your payments.

Our final focused major benefit is simply Cash flow conservation. It's tough enough in today's business environment to achieve positive working capital and cash flow for daily and long term needs. Utilizing lease financing as a tool to minimize cash outlay and reduced down payment requirements makes total sense. Choosing an off balance sheet operating lease strategy will also ensure your ratios and debt covenants stay intact.

In summary, as we stated, no overall business financing strategy works perfectly for all companies in all industries. But leasing of equipment has significant benefits that clearly outweigh other options such as purchasing for cash, entering into long term loans, etc.

Speak to a trusted, credible and experienced lease financing advisor to ensure you can take advantages of the 4 key benefits we outlined.


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




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

Article Source: http://EzineArticles.com/5189939

Equipment Finance Leasing In Canada : Behind The Scenes In Lease Finance & Asset Loans

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Will That Be Cash , Or…. Equipment Leasing? Making the Case For Leasing Asset Finance

OVERVIEW – Information on equipment finance in Canada. Lease finance is a solid alternative to term loans and leasing solutions have never been more abundant for businesses financing new or used assets

Equipment finance & asset loan solutions in Canada more often than not boil down to one basic question - Will that be cash .. or lease finance?!



Why do thousands of firms of all size in Canada continue to come back to this great method of financing their equipment, capital expenditures, etc? One of those reasons is simply that they need the equipment for increased growth and profits, and to remain competitive in their industry. Let's dig in.


Acquiring new equipment has a cost attached to it of course. Those capital budgets, whether your firm is large or small, can be a huge drain on your cash flow and working capital needs - cash flow and working capital that you would prefer to have on a daily basis.


Every firm has different reasons for Leasing in Canada. It's kind of the opposite of the old adage of buying on credit as a preferred option to cash . That adage makes less sense when considering new or used equipt options for asset that are expensive, and depreciate!


Different industries have different levels of capital intensity , and increased capital needs often force owners to raise additional equity . Lease finance allows you to conserve cash.. and equity !


For businesses that are in a competitive environment the focus is always on staying up to date with plant equipment, computers, software , etc ( By the way, software can be leased also!)


Numerous issues arise out of asset finance needs - They include budgets, cash flow challenges, miscellaneous related costs, etc.
Let’s look at a quick example: Let’s say your company needs an 80,000.00 piece of equipment for the manufacturing process. What are the options of the Canadian business owner and financial manager?


They are fairly obvious, so which one is best? The options are:

- Pay cash and reduce the company ‘ cash on hand ‘ on the balance sheet

- Draw down on the company line of credit - most firms today need to make maximum use of their working capital and cash is almost never in abundance

- Speak to your Canadian chartered bank about equipment loans

- Lease the equipment


Bank negotiations around term loans and loan covenants and approval times don’t seem to appealing . Lease financing becomes a very obvious first choice. The faster the new equipment arrives and proper lease financing put in place the faster you can continue to grow sales!


Seek out and speak to a trusted, credible, and experienced lease financing advisor and discover how those financing options can enhance your business!



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

Financing Assets In Canada : Business Equipment Leasing Via Lease Finance Should Be Your Go To Asset Funding Strategy

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Just The Good Stuff On Financing Assets For Your Business

OVERVIEW – Information on financing business assets in Canada . Lease finance solutions deliver and 80% of owners/financial mgrs consider the equipment leasing solution

Financing assets in Canada is based on the premise that your business requires these assets to stay both competitive and probable. The reality of acquiring assets for you business of any type is understanding that they typically depreciate in value - that’s why lease finance works! Want the ' good stuff ' on this accepted and popular asset finance strategy? Let's dig in.

A commercial lease finance company is more often than not your best partner to acquire and pay for assets on your behalf - and that means any king of assets - plant equipment, rolling stock, software, technology, etc. Almost any asset can be financed.

So how does a truly effective lease financing solution work? Simple actually - you lender purchases the equipment on your behalf - they outlay the full purchase price and you ' lease ' it back over a fixed period of time - typically from 2-7 years.

Numerous benefits accrue to your form when you acquire assets through lease acquisition. Simplicity is often the key driver here, as many applications can be adjudicated in a manner of days, if not hours! Typical info you might need to provide is description of the assets, or perhaps a quote from a vendor, your business financials, and miscellaneous info required to prove that the asset will generate cash flow and revenue and profits to grow your business.

That simplicity becomes a little more challenging by requiring you to ensure that you have picked the right type of lease/ financing partner. Here it might be good to get the assistance of an industry professional.

Not only the type of lease you pick is important - it’s also critical to ensure your company knows your rights and obligations at the end of the lease. Most clients wish ownership of the assets or technology to revert to their company at the end of the lease term. However in certain cases many businesses should look at operating leases to simply use the assets with the lease term - that often lowers the monthly payment. Bottom line - it's all about knowing what value the asset has to your business at the end of the lease term.

Looking for some good news in these challenging troubled times? Well the reality is that lease finance solutions are available to pretty well every firm, from start up to established corporation. Even the largest well known public companies of significant size use equipment leasing for cash flow and balance sheet reasons.

Quite frankly, as is the case in a lot of banking scenarios transactions for smaller or start up firms are based significantly on the credit history and business experience of the owners, so Canadian business owners should be prepared to demonstrate the proper credit history and business acumen.


There is no limit to the amount of financing that is available in Canada for lease financing. During the economic crunch of 2008 and 2009 many lease firms actually got assistance from the government to keep the wheels of lease financing moving. Markets have stabilized and funding is generally as abundant as it ever was for the right types of assets and credit quality.

Our bottom line today? Lease financing is very simply and has clear benefits. As we noted the challenge is in getting approval for the right transaction in terms of credit approval, rate, and overall lease structure.

Seek out and speak to a credible, trusted, and experienced advisor in this area to ensure you are making the best use of this valuable Canadian business financing strategy.




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

Does Equipment-Lease Financing Affect My Firms Loan Covenants?

A New Approach To The Asset Finance Challenge For Canadian Business

Information on lease finance in Canada . Equipment loans and leasing strategies play a key role in business financing in Canada . Knowing how this affects your financials and other lending arrangements is key . Here's why

When companies borrow from banks and other asset based lending firms there is, almost always, certain covenants that are put in place to ensure the lenders comfort with the financing. These covenants tend to be financial ratios (we can call them 'number relationships') that would allow a lender to get some sense of early warning that their loan may not be repaid.

The most typical covenants the lenders place on borrowings tend to be:

- Working capital guidelines
- Total debt versus total equity in the company
- Cash flow coverage
- i.e. the company's ability to generate cash to pay the loans

When these covenants are broken discussions ensue with the bank and the company!

Leasing and equipment financing, as a borrowing strategy, 99% of the time we feel, eliminates the additional risk a company takes when borrowing on equipment. That is to say that lease companies, in general, do not insist on those same restrictive covenants that the bank does. We can therefore make a statement that the company has a greater feeling of independence when it enters into a lease financing arrangement.

Why does the lease company not require those restrictive covenants? That is probably for two reasons - the first is the fact that leasing rates are, in general, higher than bank rates, so the lease company reflects their risk in pricing. Many times the lease firm will also ask for a deposit or advance payment to further augment our above point.

And at the core of why the lease company does not insist on restrictive covenants is the fact that most lease firms have very strong asset experience and are generally comfortable with collateral. As we can all imagine, banker can't be expected to have a strong sense of equipment valuation and remarketing - they are of course more 'numbers' oriented - relying on the balance sheet and income statement to predict payment, not the value of the asset.

In summary, leasing as an alternative form of finance allows a firm to acquire equipment without additional concern over lender covenants and ratios more commonly associated with banks.


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


















Article Source: http://EzineArticles.com/3543408

Why Equipment Leasing Dominates Asset Financing In Canada : How To Win With Lease Finance Strategies

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The Secrets Behind Equipment Financing In Canada

Information on equipment leasing in Canada. Asset financing strategies and decisions almost always include lease finance solutions. Here's why !

When Canadian business owners and financial managers realize that the core of their business is often the acquisition of capital assets they need to investigate equipment leasing in Canada. Why do they wish to lease? Very imply put – necessity, convenience, risk shifting, and tax and financial statement advantages. Let's dig in.

Depending on what industry you Canadian company is in you potentially have a large need for capital equipment. Capital expenditures, capital equipment they are simply the business ‘buzz words’ for assets that you need to run your business – it might be a new computer system and software ( yes software can be leased and financed!) , plant machinery, or additional office equipment such as copiers, etc . All of those assets can be financed.

As your company has grown it has potentially grown more debt at the same time! The bankers and financial analysts of course refer to that as potentially ‘over leveraging’ your company. Your are of course repaying that debt from your cash flow and profits, and most business owners and financial managers do not wish to hinder their bank arrangements. In certain cases based on the current economic environment you might even be looking at an acquisition , which is another very solid reason to avoid ‘ senior debt ‘ – By senior debt we usually mean bank and mezzanine or subordinated debt that you have in place .

So what’s the solution? You might be saying, ‘... well leasing isn’t necessarily the solution because that’s more debt right ..? ‘And the answer is: maybe. The reality is that by carefully structuring your capital asset acquisitions as operating leases you avoid some of those balance sheet issues which may have, or could become, a concern.

Canadian business owners might be thinking that the same challenges they faced in obtaining that ‘senior debt’ we spoke of might in fact come into play with lease financing. The reality is that equipment lease financing, particularly when structured properly by an advisor or lender who is credible is in fact very asset focused and places significantly less reliance on the traditional metrics imposed by banks.

As in every aspect of business you should be partnering or consulting with someone who is a recognized expert in equipment lease financing and who will maximize flexibility and take the time to understand your business.

The internet might be a very reasonable choice to find such an expert partner, and of course referrals from your trusted sources are worth their weight in gold also.

In Canada, if you are choosing to enter into lease financing and you do not understand:

The industry players
Credit and documentations issues
Types of Leases
Rates structures based on your credit quality

Etc, then you potentially are at a very significant disadvantage with respect to maximizing the best type of lease financing that your firm can achieve.

Competitive pricing and Approved Financing – those are advantages of Canadian equipment financing!


Most Canadian business owners and financial managers understand the basics of leasing and equipment financing, as the industry had flourished and grown for decades. The basic premise is simple, your Canadian firm wants to use an asset, but not necessarily own it, and, more importantly, you don’t want to pay for it all up front and receive the economic benefits of that asset over a number of years. Lease transactions can typically e three to five years, but some assets have much longer terms, and of course much longer useful economic life.

What can get confusing for some business owners is, on occasion, the various terms around the concept of leasing, you may have heard them many times before. They are terms such as financial lease, capital lease, full payout lease, operating lese, and finance lease. All of these terms refer to the general concept of leasing, and specifically to the types of leases then your firm can enter into. You clearly want to know what type of lease you are entering into!

Why does Canadian business choose to use lease financing as an alternative financing vehicle. We will discuss four of them -

The need to finance

Flexibility and convenience

Risk (asset)

Accounting and tax reasons


So let’s recap a bit about those issues. When we say ‘ need to finance’ your Canadian company has a need for assets and capital expenditures, but you either do not have the cash to purchase those items, and probably if you did you would want that free cash to run your company from an operating perspective, i.e. buy inventory, etc.

With respect to convenience your firm may require the latest technology for, say, computers, or plant production equipment. You certainly don’t intend to purchase an asset for a short time, take the depreciation hit, and then sell it. That would not make business sense.

We alluded to ‘risk ‘as a key concept in lease financing. By that we meant that there are risks associated with many asset types, think computers as an example. New computers and technology come out it seems almost every day – why would we pay full price for an asset that wont be producing to industry requirements in a year or so, and , furthermore, what would we do with that asset after its no long ‘ leading edge’ technology . That is where lease financing in Canada makes perfect sense.

And don’t forget when we said flexibility is a key concept in leasing. It’s never a perfect world with perfect timing in business. Let’s say, using our computer example, that your firm invested in computing technology, or telecom for example, and you structured a lease to use operating lease for 2 years.


Now we come to the end of that 2 year term and what do we find. The asset seems to still be fairly leading edge, and we are receiving fairly good economic benefit. But our lease is up. What do we do? Here comes the flexibility – we call our lessor or trusted leasing advisor and negotiate a 6 or 12 month extension to our lease. Savvy business owners will also ask the lessor to reduce the monthly payment, as the lease company has generally recovered all its initial investment.

Canadian lease financing and equipment financing – is it your only business financing option – No. Should you consider it as one of your financing alternatives – most certainly! Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your asset finance needs.



Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop

Equipment Financing In Canada : Your Hot Tip On Leasing Assets & Winning Lease Finance Strategies

We’ve Hacked Into The Equipment Financing Tips & Strategies Database ! Take A Look

OVERVIEW - Information on equipment financing in Canada. Leasing strategies are explored and tips are provided on lease finance and asset acquisition solutions for Canadian business owners

Equipment Financing Problems? Canadian business owners and financial managers continue to view lease equipment financing as a solid alternative for equipment and asset acquisition in Canada. Let’s dig in.


Leasing and equipment financing have been key to Canadian business for well over 60 years, if not longer. It is simply the method of acquiring assets and paying for those assets over a period of time – A current popular ‘buzzword’ on leasing is ‘profiting through use of equipment ‘. As a general rule most business owners would like to use assets, not necessarily own them. That brings us to one last buzzword, which is ‘if it appreciates buy it, if it depreciates, lease it! Let’s dig in.


When we meet with business owners they often ask us for strategies and ‘how to ‘with respect to financing their assets. If the vendor or manufacturer you are working with does NOT offer financing then your job is to simply focus on obtaining the best price and delivery date for the asset you are acquiring.


We referenced above the manufacturer not offering financing - We categorically encourage any company to take advantage of vendor financing or manufacturer financing that is available, if it is available! Why is that? Manufacturers and vendors either set up captive finance companies, or work with others to implement financing of their products for some very specific reasons. Primarily the reason is that companies do not wish to lose sales and profits by not offering a financing option.


Also, when you lease through a manufacturer you are in effect under their control for a number of years with respect to their ability to offer service, upgrades, maintenance, etc. So the bottom line is that if you can take advantage of manufacturer financing, you should!


One of the only reasons you might not be able to take advantage of manufacturer financing is that your firm does not meet the financial and credit criteria of the vendor. In that case you simply need to work with a trusted, credible and experienced leasing advisor who can source the appropriate financing for the asset with a rate, term and structure that approximates your credit quality. In general we advise customers that when a vendor or manufacturer has a financing offering the credit criteria to qualify in general is quite high.


Because leasing in Canada has the potential to be viewed as complex we try and approach working with customer in a very consultative manner.
Why can Leasing in Canada be viewed as Complex? We are of the opinion that if a lease transaction is a good transaction it creates a win win environment for both your firm and the lease company. To do that various aspects of business need to be tabled - those aspects are:

Taxes

Accounting

Credit

Rate/Term/ and Structure of the lease itself

When your firm has properly addressed all of these issues at least in a very basic manner your business will have created a proper lease transaction. When all of the above issues are addressed then your firm is in a position to benefit from a lease financing scenario. The benefits of leasing are generally well known – they are:

Flexible and lower monthly payments -in cases where you utilize an operating lease these payments would be significantly lower than a term loan

Ability to upgrade and return equipment

Maintenance and service are many times included in a lease financing

Little or no cash down payment

Discussing these issues with out customers usually brings out the clear fact that not all the benefits of leasing in general apply to every firm. Quite frankly some are more important than others to each Canadian business.

In summary, when contemplating Canadian Equipment Financing work with atrusted, credible and experienced Canadian business Financing Advisor with a track record of success
.

Determine what your financing needs are and focus in on which benefits you need to maximize to make your financing work to optimal advantage . And then, as we said, you will ‘Profit through use, not ownership’!




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