What You Need To Know About Equipment Leasing Companies in Canada

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Tips on Commercial Equipment Leasing To Save You Money and Time

Information on equipment lease financing in Canada the the companies that offer equipment lease financing & equipment loans. Navigating lease financing minefields!

If you have made the decision to contact equipment leasing companies
in Canada you probably already have some sense of the advantages of commercial equipment leasing . How do you ensure you can get approved and also successfully negotiate the leasing benefits that are most important to your firm . Lets explore some money saving and time saving tips on equipment finance in Canada .

Just knowing which type of lease you need or that makes sense should be strategy number one – its not a complicated minefield of lease types – there are only two types of leases you should be looking at . The technical term for these two leasing types is capital lease, or operation lease . Which one makes sense for your firm? To make that decision simply focus on the end means – ask yourself this question – ‘ Does my business ultimately want to own this equipment, or are we more focused just for using it to generate revenue and profits for a specific period of time ?” That specific period of time might also have to do with the technology you are acquiring that down the road might be outdated or require enhancement or replacement .

So the simple rule is as follows – Negotiate a capital lease for equipment you want to keep and own, and negotiate an operating lease for commercial equipment you want to use and return . Equipment leasing companies may or may not offer your type of lease, so understand the overall market for your type of transaction .

What many Canadian business owners and financial managers don’t understand is how the pricing of a lease if reflected in both the type of lease you acquire, as well as the overall lease structure .

Example : If you firm is leasing a smaller ticket item leasing companies sense that you are more aware of the monthly cash flow and payments you are required to make . As a result the lease company can significantly adjust their rates based on your negotiations around which payment you feel you could make on the lease . A monthly payment of $ 515.00 is required for a 5 year capital lease of 25,000.00 of equipment . If the lessor tells you the monthly payment is 575.00$ per month they have just raised the rate to 14%. So focus on a combination of rate and monthly payment in your negotiations and understand how those fluctuations work .

Clients are always telling us they choose leasing financing as an options because of the focus on cash outflow . However , you should understand that often a down payment or a first and last payment might be required, so factor this type of negotiation into your lease negotiations .

It is important to get a commitment letter that spells out the overall lease payments and structure, and identifies both yours and the lessors obligations for a commercial equipment lease .

It is of course ok to get a competitive quote from another party, the challenge we find is simply that many clients aren’t capable of making an apples to apples comparison to the different rates and options provided . Ultimately as Canadian business owners we prefer to rely on an expert when we deal with any part of our business, including the crucial area of financing . As a result seek out a trusted, credible and successful business financing advisor who can assist you in a success commercial equipment lease financing transaction . This makes even more sense when a larger amount of capital expenditure is required .

If you do choose to work with an expert you will find that you might be saving many thousands of dollars on issues that might involve prepayment obligations, insurance coverage required, upgrade options, equipment registrations fees for collateralization of the lease, and assignment priveliges of both parties . So the bottom line again appears to be that consulting an expert in this area of business finance is highly recommended .

Make equipment financing a successful part of your overall capital expenditure strategy – focus on benefits that make sense for your firm, pick the right lease type, and ensure that the overall terms and pricing match your firms needs . That’s successful commercial equipment leasing in Canada.








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 Financing Companies Canada : 3 Things You Must Know

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Equipment Lease Financing in Canada

Information on equipment lease financing in Canada, Critical information regarding financing assets for your business

Canadian business owners and financial mangers need to know a couple critical pieces of information when contemplating an equipment financing and leasing transaction in the Canadian marketplace. We tell clients that if you don’t have good info and insights into these three factor you are poorly equipped to enter into a lease financing strategy.





We can summarize those items as follows:

Know the type of lease you need – there are several types, and the wrong pick in this area can nullify the benefits you are seeking in a lease financing strategy

Focus in on what advantages of leasing are important to yourself and your firm – Not all advantages will usually apply to everyone

It’s not a perfect world, there might be disadvantages to lease financing in your particular case – Understand what those might be.


Let’s elaborate on those key points. First of all there are two types of leases in the Canadian marketplace – you can answer which one is best for yourself by simply asking the basic question – Do I want to ultimately own the equipment, or in fact do I simply want to use the equipment. There a big difference there that affects both the overall pricing of your transaction, and how it is structured financially on your books.

The two types of leases in technical terms are capital leases, and operating leases. In a capital lease transaction you make fixed payments over a period of time and then gain ownership of the equipment. The payments to the lessors cover the cost of the equipment and the interest or financing charges. Again, the bottom line is that you retain ownership at the end of the lease.

In an operating lease scenario you pay for the equipment and its use for a specified term, the most typical rate we encourage clients to enter into on an operating lease is 3 years. These types of leases have significant cash flow and balance sheet advantages and make sense when leasing items such as technology, i.e. computers.

Let’s focus in on critical factor # 2 – what leasing advantages are important to your firm. There are several very obvious ones which include:

Cash flow and working capital conservation

Higher loan to value financing – usually only a nominal down payment is required

Your other credit facilities remain untouched – we strongly recommend to clients that they match long term asset acquisition with a long term lease financing strategy, You don’t want to purchase assets with your revolving credit line or receivables financing facility

In 90% or more of lease financing deals the only collateral is the asset being financed
Your accountant will advise you that you have a number of tax, write off, and investment tax credit scenarios which may further maximize your transaction.


Let’s close off now and move to final critical item # 3 which we can simply start out by saying – It’s not a perfect world! No single financing strategy is beneficial for all firms. Some of the potential and that’s important, potential disadvantages are that leasing in some cases has a real or perceived higher cost. Also, if you are doing a sale lease back financing in some cases if your asset is below the sale price there might be a capital gain tax to pay. Although they aren’t ‘ disadvantages’ per se, you should also thoroughly understand insurance, install, purchase options, and any restrictive covenants that might come into play in a lease financing strategy .


Leasing continues to be one of the most important sources of long term working capital .Don’t over look it, but do clearly understand how our 3 factors can assist you in making an informed equipment financing decision.






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 Business Loan Financing : Pain or Pleasure ? Mastering Finance Success With Equipment Lease Companies

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Equipment Leasing Success Strategies

Information on equipment lease companies in Canada and how to maximize asset acquisition business financing success via leasing and equipment loan strategies that work to your competitive advantage

You've been there before. Does this sound familiar? You need to acquire costly assets for your company and don't want to utilize your cash reserves of business operating credit to acquire asset financing.

Yes of course you could get a traditional term loan via your chartered bank, but if you are a small or medium sized business and unable to access term financing what are your available options? The answer is a business financing lease loan via Canadian equipment lease companies.

Why are some firms successful in both obtaining approval for their leased asset needs, and at the same time seemingly able to get the payments they want to sustain their cash flow and working capital.

Let's examine some key info, strategies, tips, and types of solutions available to Canadian business owners and financial managers.

You will find first of all, and this is a key driver in business financing and equipment leasing... that approval for your transaction is much easier to obtian than other types of asset finance. Most business owners don’t understand the very simple process involved in acquiring asset financing via equipment lease companies in Canada. To prove our point it’s simply a fact that in North America Billions, yes billions of dollars of assets are lease financed.

A typical approval process is simply a standard credit application, appropriate financial disclosure, and a copy of a quote or invoice from your chosen vendor. It's as simple as that. Naturally the larger the transaction size the more info you might have to provide re financial statements, etc.

Many businesses aren’t aware that a huge part of the equipment lease industry in Canada utilizes whats known as an ' app only ' approval process, with you as a business owner providing only a standard application, with most approvals done via automatic scoring, via the lessors ' point system ' criteria around your years in business , payment record to suppliers , etc.

You have truly mastered equipment lease business financing when you fully comprehend the fact that almost any asset, even some intangibles (i.e. software) can be financed. Its
when you make your lease and loan finance decision a part of your overall long term financing strategy that you suddenly realize that every asset that is both costly and depreciates probably makes sense in your overall lease financing strategy .

Successful lease finance lets you keep and grow your cash reserves, allowing you to survive against that constant battle with your competitors. One of the smartest things you can do is to develop relationships with equipment lease companies that will over a long term basis provide you with ongoing lease lines of credit for all your asset needs. The industry itself refers to this strategy as an ' evergreen ' scenario, one in which your firm is constantly refreshing its assets to generate sales and profits.

How many times have you felt that sales and profits are growing, you seem to be winning the competitive battle, but cash flow is a challenge due the to the heavy investment you have in assets such as receivables and inventory . That’s when business financing via a n equipment lease makes your overall success complete, as you retain that much needed operating cash flow for growth and sales, letting lease and loan finance hand the asset acquisition part of your growth plan .

Let's get one thing straight. The reason leasing companies in Canada exist is simply their own mandate to generate lease transactions! Criteria for approval is significantly different than a more traditional banking approach, with heavy emphasis placed on the asset as collateral, as well as its ability to generate profits and sales for your company . Many business owners are surprised to hear that even start ups or very young firms can generate significant lease financing approvals for assets they need to grow the business.

We've focused on issue such as approval, types of assets, and alternatives to traditional financing in looking at your relationship with equipment lease companies. But don’t forget also the other major benefits of this asset acquisition strategy, some of which may be more important than others to your firm. They include tax and balance sheet advantages, improving your ability to manage obsolescence in assets.

We can guarantee you that you'll only master and be successful in lease financing when you understand the make up of the Canadian equipment lease landscape. Knowing who to talk to and whats available will put you significant ahead of the pack. Speak to a trusted, credible and experience Canadian business financing advisor for assistance in dealing with equipment leasing companies to your advantage.

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

Click here for 7 PARK AVENUE FINANCIAL

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' 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

How To Master Equipment & Asset Acquistions For Your Business

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Equipment / New Asset Needs ? Cash Flow Pressures? Welcome To Plan B !

Information on equipment leasing and financing in Canada . Business leasing allows Canadian business owners to adopt solid financial strategies to maximize asset acquisition and reduce cost and conserve cash flow

Its official - your company is on the road to recovery in the Canadian business landscape. So how can you use equipment leasing and financing as a new economy strategy? Let’s share some tools and strategies for Canadian business owners and managers, allowing you to maximize business leasing dollar benefits.

The economic havoc that wrought business financing tension in 2008-2009 appears behind us. However, the cost of, and access to credit remain two key issues in Canadian business financing.

Equipment leasing allows you plan carefully for growth. Think of all the uncertainties you have in either replacing or purchasing a new asset. Those key uncertainties are things such as cost of the asset, the obsolescence issue, concerns around asset acquisition negatively impacting your working capital, as well as competitive pressure.

Any of those issues might seem insurmountable if you didn’t have a business leasing alternative for asset acquisition.

Many companies in Canada have not thoroughly investigated the use of operating leases as a business leasing and financing strategy. This strategy alone can give you a triple weapon to beat the cost of assets, the cost of financing, and, as we noted, that pesky ' obsolescence ' issue.

So how does the owner of CFO implement such a strategy? We're the first to admit it works best on technology related assets, i.e. computers, telecom, etc. Let your Canadian equipment leasing company take the risk by your careful creation of an operating lease. This transaction is very powerful... why? .. simply because your payments are lower, your monthly rentals are fixed , the overall cost to finance a depreciating asset is less, and last, but not lease, it you who make the call at the end of the lease term on owning, returning, or extending your transaction !

It should be obvious to any business owner or CFO that you can’t break through and business financing barrier if you don’t know who you are dealing with. There are tens, hundreds actually of business leasing firms in Canada.

Want to waste a lot of your valuable time? If you do then don’t investigate the type and size and credit criteria of the lease firm you are dealing with. That’s not our recommendation however! What you want to do is ensure your asset and your financial situation is matched with a firm that perfectly suits your equipment leasing needs. So that can be a small ticket item, a complex technology strategy, or a used piece of heavy construction equipment. Bottom line; know you lessor re asset type, credit criteria, and flexibility re structuring.

Hers a simple breakthrough strategy - simply make a list of whats important to you in your leasing financing decision - key items might be capital conservation, payment flexibility, enhanced structuring , a la off balance sheet, etc . Any one of those items, properly completed, can save you thousands of dollars on a transaction.

Business leasing is back in demand! Your competitors are for sure utilizing business leasing. Your company is unique. So whether your reasons to finance are technological, financial, convenience related, or hard core economic - (i.e. diversifying your borrowing) don't dismiss your ability to achieve breakthrough financing via equipment leasing in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor for some of the best business financing advice you will ever receive on business leasing.






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

Give Me Ten Reasons Why My Firm Should Consider Lease Financing!

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Equipment lease financing is an alternative choice for firms who wish to acquire capital equipment and other assets. Typically the other two methods to acquire such assets are either a cash purchase, or a loan of some sorts, usually via a bank. The lease financing solution can frequently offer significant cost savings to the borrower, know as the 'lessee'.

Equipment lease financing is an alternative choice for firms who wish to acquire capital equipment and other assets. Typically the other two methods to acquire such assets are either a cash purchase, or a loan of some sorts, usually via a bank.

The lease financing solution can frequently offer significant cost savings to the borrower, know as the 'lessee'. However, this is not just an expense strategy; there are numerous other reasons why this type of financing should be considered.

As an example, a lease transaction that requires only a low down payment might assist the company who has a lot of working capital tied up in receivables and inventory. Receivables and inventory typically represent the largest components of a company's working capital.

If a customer chooses to purchase the equipment instead they are in effect giving up certain key rights they have in a lease - for example, upgrading equipment, early cancellations, etc.

Normally when a customer considers either a lease or buy decision the business owner or financial manager would prefer to focus on ' hard dollar ' savings; while this is optimal of course many of the benefits of leasing in effect are intangible and should still be considered as part of the acquisition strategy. Let's look at some of those intangible benefits.

1. Credit Power - many lease firms have less restrictive credit qualifications than banks or other financial institutions. This is more so the case when the lessor is actually the manufacturer of the equipment!

2. Final Disposition - the company avoids having to dispose of the assets at the end of the term of the lease

3. Timing is everything - Lease approvals tend to be faster to obtain than a loan or bank type financing

4. Payment alternatives - many lessor allow skipped payments, seasonal payments and structured payments - example: A snow plough operator might request lower payments in summer when business is slow, etc

5. Bank lines untouched - in the current economic and banking environment businesses find it more difficult to access, or even maintain their bank lines - leasing leaves those lines untouched

6. Budget issues - Leasing eliminates one the of largest obstacles to a customers ability to acquire equipment - the cost of the machine. Many firms have budget issues and the lease strategy allows them to in some ways circumvent that strategy and pay the lease through an operating budget, not a capex budget

7. When a customer is concerned about warranties or maintenance of the equipment he has significant leverage, via payments, to influence a high level of service from the manufacturer or lessor.

8. Use of asset - if a customer over uses an asset he does not necessarily have to reimburse the lessor

9. Down payment - Leasing requires only a small down payment

10. Balance Sheet optics - Properly structured leases can have the effect of enhancing the customer's balance sheet as the liability does not appear on the balance sheet - Customers want to use equipment to generate profits, they don't necessarily want to own it.

In summary, yes the business owner and manager would prefer a hard dollar evaluation of any asset acquisition, but we have shown that there are many intangibles to consider also, many of which could benefit the firm in a number of ways and have a significant impact on their business growth, financing, and profit.



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






















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


Article Source: http://EzineArticles.com/3630883

Critical Factors to Consider when Lease Financing in Canada

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Equipment Leasing Canada & Why Equipment Lease Rates aren’t Important!

Information on equipment leasing and lease rates in Canada. Factors other than interest rates are also critical when financing equipment and technology to run and grow your business

How can equipment lease rates in Canada not be the most important part of your equipment leasing in Canada acquisition strategy? That’s what clients want to know when we advise them the while an overall competitive leasing rate is important they must not miss the several other factors that play a huge part in making the proper lease financing decision.

Leasing in Canada has of course been around for many decades, we venture to say at least back to the 19 50’s, if not older than that. As a Canadian business owner and financial manager you recognize that it is clearly one of the most viable methods of acquiring assets for profit and sales growth – Profit through use is one of the buzzwords of equipment leasing in Canada.

The key thing you quickly realize about lease financing in Canada is that it encompasses all types of assets - from heavy industrial equipment, used equipment of all types, and of course technology such as computers and telecom equipment, etc . The reality is, and this is a surprise to many, that even ‘soft’ items can be financed such as computer software, or installation costs and warranties for shop equipment, etc.

So fine, we recognize that leasing is important, and we recognize it’s available to us as a financing option. So why isn’t rate the most important factor, isn’t it all about cost and payments?

We don’t think so, because the reality is that if you don’t properly address or thing about the other key factors that are involved in the whole ‘should I lease or should I buy?” decision then the last thing you should be worrying about is your rate. Let’s cover off one key point about rate before we move on to some of the other factors you must consider – it is as follows - Business is competitive in Canada – There are a number of lease financing sources.

Customers doesn’t believe us but we actually spend a lot of time talking to them and advising them that they get to pick their own rate! How is that possible they ask? It is simply based on the statement that your overall credit quality determines your rate within a very close band of competitive offerings of lease financing in Canada. So if you can properly demonstrate your own overall credit quality re ability to pay, historical cash flows, future cash flow ability, overall business prospects, etc then categorically will be in essence determine your own interest rate on the transaction. End of story on rate!

So, those critical other factors you need to consider - they are as follows – you should discuss with your accountant or a trusted, credible, and experience lease financing specialize what financial statement implications your lease will have – You want to determine if you choose a lease for ownership of the asset, or a lease for use of the asset, the latter being called technically in the industry an ‘operating lease ‘.

Are there any risk to leasing equipment .There might be. This is where you want to talk to your accountant about what the tax advantages or disadvantages are of the transaction. You mighty want to ask him to run what is known as a lease vs. buy analysis to determine, with your input, what is the best way to acquire the asset in questions.

Despite what leasing companies might tell you in their literature or on their website you might find that a true analysis of the transaction shows that leasing is not necessarily the lease expensive way to acquire assets. If you and the leasing company borrow at the same rate (it could happen – leasing companies borrow also to fund your deal) then clearly lease financing might not be the best option.

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

Equipment Financing For Business Capital Asset Needs

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What Would Happen To Your Company If You Had All The Assets & Equipment Financing You Needed?

Information on equipment financing in Canada. Having access to capital for equipment loans and leases is critical to long term business success

Canadian business owners and financial managers, difficult times notwithstanding, continue to look for financing for Equipment, and have a strong desire to understand their Canadian equipment capital options.

While trying to achieve the best pricing in their negotiations with vendors business owners at the same time want to know they can preserve their capital, cash flow, and operating capital - lease financing does exactly that.

This type of business financing in Canada is an alternative to a cash purchase or a loan from a Canadian chartered bank. Clearly a win / win scenario is achieved when a business owner can acquire the information he needs, while at the same time achieving a solid financing structure around that acquisition.

Business owners can count on a number of sure fire benefits associated with the lease financing of equipment – those benefits may differ for each firm relative to their importance. However, more often than not they include the following:


Canadian firms want to use assets to generate profits and sales – they don’t want to invest hard earned cash into depreciating assets

If there are tax advantages to an equipment finance transaction they want to utilize or benefit from them

If payments can be structured to suit the overall cash flow needs and working capital of the firm that is a beneficial option

Budgets can often complicate equipment acquisition – business owners in Canada want to know them can circumvent a budget timelines or financing amount with an effective acquisition strategy

Applying for a term or bank loan can takes weeks and months, lease equipment financing can often be approved in a matter of days based on the overall credit quality of your firm and the asset type

Lease equipment financing is complimentary to your current secured lenders or bank operating facilities – they round out your ability to get additional assets and capital


The one thing you don’t want your acquisition needs to do is to restrict your overall cash flow and working capital position. That’s why we recommend you sit down with a trusted, credible, and experience advisor in lease equipment financing in order to assess your overall asset acquisition capabilities, as well as the benefits you can derive from utilizing this financing tool.


The reality is that every type of asset in Canada can be financed, so being for armed with that knowledge can greatly enhance your overall competitive financial position.

Clients often ask us at which point in the business cycle is they eligible for lease equipment financing. Some first are start ups, some are early stage, and in many cases they are mature companies with a growth and track record. The reality is that lease financing applies to all these types of firms.

Quite frankly the true challenge in leasing simply knows what cash flow benefits you can derive from the acquisition. It is important to structure a transaction that matches the appropriate rate, term and overall lease type that you are looking for. There are actually two major lease types, lease to own, called capital leases, and lease for use, more commonly called operating leases.

Investigate financing for equipment options. Work with a credible advisor. Decide which benefits works most for your firm, and structure a transaction that makes sense and maximizes your ability to grow revenues and profits.

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