Equipment Finance In Canada. What Are Great Lease Financing Companies Worth To Your Business

If Perfect Asset Financing Was Real What Would It Look Like?

OVERVIEW – .Information on equipment finance in Canada . Let lease financing companies bridge the challenge of asset acquisition for the growth of your business




Equipment finance in Canada . Is it possible, clients ask, to achieve asset financing ' nirvana' when it comes to running and growing your business? Lease financing companies just might be the solution to that eternal conundrum of acquiring equipt. you need for your company. Why? Let's dig in.

Leading experts tell us that 80% of North American companies use lease finance when acquiring assets. So when the Canadian business owner / financial manager understands how the leasing marketplace runs they are immediately ahead of the game Just investing some time in the basics we have always maintained can save you thousands of dollars . Simply things like knowing how a lease finance firm generates a ( fair ) profit, how they evaluate your firm and asset finance request, and even simply saving tons of mgmt and ownership time by knowing who the players are .

In Canada today you can pretty well lease any asset, many intangibles included, such as computer software, or service and maintenance contracts related to your acquisitions. The industry thrive on serving all aspects of asset size, from the small ' micro ticket ' transactions right up to and including that personal corporate jet aircraft you've placed an order for !

If your firm has solid credit, typically exhibited by growing revenues, cash flows, and profits that are reflected in your balance sheet you're even in a strong position to negotiate rates that are extremely aggressive these days. Even the banks have fairly strong ventured back into offering equipment finance via separate divisions within the banks. Although credit criteria are high interest rates and structure flexibility are extremely attractive.

Medium sized and larger corporations and governments commonly even find themselves in the enviable position of tendering out their lease finance business - thereby acquiring finance rates and terms that are the best within the industry.

It always helps to have some expertise backing you when you venture into the lease finance world as a ' NEWBIE '! That might include advice from a seasoned business advisor, accountant, or lawyer on financial statement issues related to your lease request, the type of lease you are choosing, how to protect yourself in the documentation process, etc .

If you know your business you should clearly know your firms assets and their values. A large part of the ' profit strategy ' of lease financing companies in Canada revolves around the bet that you'll return the equipment. So low monthly payments sometimes come at the risk of having to return the asset at the end of term, allowing the lessor to capture that ' reasonable ' profit we alluded to earlier.

We find many of our clients don't fully understand operating leases, as such they are seduced by low payments, and even what can seem like negative interest rates, not fully understanding their obligations at the end of the lease term.

Don't forget also that you can often increase your own firms sales by lowering the sales cycle time by implementing a customer finance program for your own customers if your product allows you to do that . You an easily align yourself with a finance partner that will work with you and clients to maximize revenues, eliminate client budget challenges, and simply make the adoption of your products ' hassle free '.

Business owners and managers never want to lull themselves into complacency when it comes to staying competitive. However, as we have shown a strong grasp of asset financing via Canadian equipment finance companies saves you money, time, and prolongs your competitive edge. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset finance needs.


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 10 years - has completed in excess of 85 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 :


7 Park Avenue Financial = Canadian Equipment Finance Solutions




7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
















Stan Prokop

7 Reasons Why Lease Financing Companies Offer Advantages Of Leasing Equipment In Canada

It isn't enough to be only a ' little' in the know when it comes to business financing and your Canadian firms overall growth and success. Let's examine 7 solid and beneficial reasons how lease financing companies can demonstrate the advantages of leasing equipment for your company.

Its a simple question really. ‘Why Do Lessees Lease'? There are a variety of solid reasons and advantages and benefits to equpment financing in Canada.

We're isolated 7 of those reasons (lucky # 7?) to demonstrate the general financing power of this Canadian business financing strategy.

Reason #1 - 80% of all companies in North America lease equipment at one time or another. Not a great reason you say? We at least hope that you'll agree that if your competition is doing something you should at least be aware or analyze why that the case. As you will see your competition has focused on issues such as working capital preservation, accounting benefits, and plain old convenience.

Reason #2 - Tax benefits. The last thing we want clients to do is get caught up in the whole issue of tax treatment of leases, let’s leave that to your accountants and business advisors. But the reality is that there are significant benefits that are tax oriented when it comes to the product offering of lease financing companies in Canada. They include such critical factors as depreciation, off balance sheet financing, etc. Again, leave it to the experts, but it’s a solid aspect of equipment finance in Canada.

Reason # 3 - Matching financing to useful economic life. What are we talking about? Just common sense really, which is simply the fact that one of the advantages of leasing equpment in Canada is that you can match the estimated useful economic life of any asset you purchase (from a photocopier to an airplane!) to your lease term. Technology is a great example of this, in that it depreciates quickly, has a huge obsolescence issue attached to it, and your ability to craft lease financing that matches the tech asset is huge. At the other ends of the spectrum, lease that corporate jet for 10, 15 or 20 years, there's an asset that hangs around for a long time!

Reason #4 - Solid lease rates. The great news is that Canadian equpment leasing and financing is on a total upswing as we head thru 2011. The industry has revitalized, recapitalized, and is very competitive. A lot of the lease finance pricing you obtain will be competitive to bank rates and other forms of finance such as term loans for assets.

Unfortunately many clients we speak to for the first time on asset finance are overly focused on rate. Our point is that it’s a competitive environment, and your current credit quality will get you a good rate in the current finance environment, so you'd do a lot better, we feel, if you focused on some of those other advantages we're talking about.

Reason #5 - Assets. They come in all shapes and sizes for your firm and industry. Tech assets, production assets, etc. The only bottom line... simple... any asset can be financed using a lease strategy. So if the cost and turnover of assets is a constant consideration utilize lease financing as a regular ' refresh ' strategy.

Reason # 6- Measurements. Measurements? What we're talking about is simply that how your business owners, investors, or shareholders are measure can sometimes be significantly impacted by the assets you acquire. Return on assets, return on equity, ebitda, are key ways to measure whether your company is winning and losing. Lease financing can often impact all of these measurements, and depending on what your ' business scorecard ' is, can help you manage capital and assets.

Reason # 7- Last, but not least, isn’t it always about Cash flow. It sure is, and if your company is either as start up or a Canadian Financial Post 100 firm you have cash flow challenges, issues, and measurements around that term. Lease financing allows you to eliminate a lot of those working capital worries, it minimizes or gets rid of down payment issues, pays the supplier and vendor promptly, and can provide 100% financing for your asset. Very simply, it conserves cash.


Well, that’s it. Are the advantages of leasing equipment better than other capital asset strategies? We think so, but that’s for you to decide. And getting back to the competition, they're doing it, so why not speak to a trusted, credible and experienced Canadian business financing and leasing advisor who can assist you to maximize these benefits.



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 .Info re: Canadian business financing & contact details :

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