Business Equipment Financing In Canada . Cornering That Lease Approval !

Can You Control An Equipment Lease Approval?


OVERVIEW – .Information on business equipment financing in Canada . What conditions are required to get your asset lease approved under rates, terms and structures that work




'What is my rate?' is a question we’re often asked by customers when they work with us with respect to equipment and lease financing .

They are surprised when I tell them that they get to pick their own rate! (All customers want the lowest rate!)
We’re not trying to be facetious when we make that statement. What we are saying is that the over all credit quality of a customer, as perceived by the lender ( that's important!) is in fact set by the customer, thereby driving a final approval on rate, term and structure of the proposed financing request.


The role of the customer, or their trusted advisor is to understand the basic credit information requirements and how the overall risk to the customer and their industry will be perceived by the lender. The irony of a lot of business leasing is that the industry for the most part used historical analysis to project future ability to pay. That is a difficult concept for the customer to handle more often than not - as an example the customer may have lost some money last year, driving a negative cash flow figure. Prospects have improved, new orders are coming in, and yet the business has a problem in getting new financing.
The customer needs to ensure that the information and ' story ' make the transaction become more ' approvable'.




Critical categories in the information submission by the company are as follows:


Length of time in business
Personal credit history of the owners
Relationships with other financial institutions
Quality of the financials (Some customers submit balance sheets that don't balance!)
Additional collateral available if necessary
Summary of key financial info such as depreciation, cash flows
Positive focus on management and its background and experience


If the customer is qualified to make such a submission a solid package as per our list noted above should lend itself towards an approval at current market rates and structures. If the customer feels they are not properly qualified to make such a submission they are strongly encouraged to used a qualified intermediary who knows the industry and, more importantly, knows the specific weighting given by a lender to the above noted submission requirements.


The amount of information required around each component is more often than not determine by the size of the transaction or the lenders total exposure to that customer. In many cases small ticket transactions (those under $ 25,000.00) are adjudicated via a credit application and public reporting sources such as Equifax or Dun and Bradstreet. Typically 60-70% of all small ticket transactions are approved.


In summary, customers who want to get a prompt and of course positive lease approval should focus on providing a clean package of required information that will ensure a prompt approval based on specific industry requirements around the transaction size and asset type.


Knowing that the lender will focus on future potential of the firm, the management experience, and the collateral asset are valuable data points for any business seeking a business equipment financing lease. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your lease 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 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 :


BUSINESS EQUIPMENT FINANCING CANADA – LEASE FINANCING



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

Can A Leasing Company Empower Your Asset Finance Needs ? Understanding A Lease Companies Offerings

Maximizing Benefits of Lease Finance

OVERVIEW – Information on asset finance in Canada . How a leasing company provides lease financing solutions that empower business owners and managers.




Does your ability to deal with a leasing company empower your asset finance needs? We checked out ' empowerment' in the dictionary and its all about giving ' power and authority '. Your ability to master dealing with and recognizing the benefits of the right leasing company and solution clearly put you in empowerment mode.

Let's explain!

At the heart of leasing finance is its ability to be both straightforward, yet creative when it comes to financing assets your business needs, or needs to replace! We constantly hear the term ' win / win ' in business and nothing embodies that more that your ability to properly finance assets.

Lease finance in effect empowers you to have greater control over a number of key aspects of your business - they include cash outflows, balance sheet and income statement consequences, and the ability to profit using assets acquired under the lease. Some of those assets might in fact be needed in the normal course; some allow you gain a competitive edge over the competition.

When Canadian business owners and managers acquire assets from major manufacturers they are often pleasantly surprise to find out that these corporations have independent finance related companies that are incented to move product. That’s to your benefit of course, and taking advantage of their financing options is a clear example of empowerment.

What are some of those finance options? They might include staggered cash flows, low or no down payments. Operating leases with greater flexibility at end of term, etc. And on it goes.

Quite frankly we can’t think of one other form of business financing that allows you to gain a certain level of control over technology, financial statement presentation, cash flow management, as well as the opportunity to match the economic life of certain business assets to your own firms financial condition.

Feeling locked or trapped in, in any form of business is not a great feeling. A leasing company allows you to manage the concept of upgrading, whether that be on the shop floor or in the computer room. We're constantly told we are living in a ' knowledge based ' environment , so just managing tech assets such as computers, telecom assets, and application software all can make or break your business . With what other financing mechanism other than an equipment lease can you in fact transfer the risk of obsolescence to the lessor, your lease company? The answer - basically none!

Owners and managers of corporations of all size are beholden to their shareholders (in some cases themselves!). Leasing companies offer you solutions that allow you to report a higher level of return on assets and equity.

Many managers in medium sized and larger corporations are ' victims 'of 'corporate budgets. At lease it certainly feels that way sometimes. Lease companies allow managers that are constrained by capital budgets to acquire the assets they need to run their division or business. That's empowerment! And again let us make the point that what other finance tool allows you to acquire more expensive and better assets while keeping monthly payments or budgets in line. As we said, we can't think of one.

Want to get a bit more ' empowerment' when it comes to financing business assets? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset finance needs.

7 PARK AVENUE FINANCIAL
CANADIAN LEASE FINANCING EXPERTISE


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 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-company-asset-finance-lease.html




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

Your Road Map To Success With Leasing Companies . Equipment Finance Rates And Lease Finance Solutions

Looking For A Path To Canadian Equipment Financing Success?


OVERVIEW – Information on working successfully with leasing companies in Canada . Equipment finance rates and asset lease solutions are more readily available for the Canadian business owner.



When it comes to using leasing companies for equipment finance in Canada is there a road map that Canadian business owners and financial managers can use to ensure they are getting the best solutions, rates and structures for acquiring business assets. We think there is a basic road map that can be followed to ensure asset financing success.

So what would the elements of that road map be? We think it comes to the following categories :

Solid structures , rates and terms

Understanding the benefits, and yes the risks of lease finance

Ensuring you have chosen the right lease with a monthly payment and term that supports your financial needs

Understanding the accounting and tax implications of your transaction


Trouble shooting to ensure you're dealing with the right lease company

Utilizing Proper third part assistance when needed

When you have those points covered off we're pretty sure you are very close to having a solid road map in front of you for the lease finance journey.

There really isn't another more popular method of financing your business asset acquisitions in Canada and the U.S. In fact billions of dollars of assets are financed every year, and the ability of your business to acquire assets with financing that comes with other benefits make this business tool extremely popular.

The actual asset that your firm acquires has both a useful life and some economic and hopefully operational value to your business. In many cases these assets will have a residual value. That's where it’s important for you to ensure you're still following some of our road map issues - namely understanding who to deal with and what type of lease you choose. Those two choices boil down to lease to own (capital lease) and lease to use (operating lease).

How you shape and negotiate your payments around that asset is what makes you a winning in dealing with leasing companies. Equipment finance rates themselves are important, but at the essence of this financing tool is the fact that you have access to a lot of structuring tools that come with both risks and opportunities for you and your chosen lease company.

Typical benefits associated with lease finance include the ability to match monthly payments to cash flow streams that make sense for your firm. Despite all the flexibility that is offered with lease structuring more often than not the business owner and manager simply wants to know that a regular fixed monthly payment is a known factor they can readily deal with.

When equipment finance rates and monthly payment values are critical you have access to a number of solid tools -. They include lengthening the lease term, including a residual value in your structure, or negotiating lower down payments.

If you want to maximize the leverage your firm has in acquiring assets through leasing companies spend some time on our key ROAD MAP points and protect your interests and assets.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your lease finance needs.

7 PARK AVENUE FINANCIAL
CANADIAN EQUIPMENT FINANCING EXPERTISE

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 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-companies-equipment-finance-rates-lease.html




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

Customer Finance Programs At Zero Cost ? Lease And Loan Offers Your Clients Want Now . Achieve Leasing Company Benefits For Your Clients

Increasing Sales ? Consider a Customer Finance Program – Here’s how!



OVERVIEW – Information on setting up customer finance programs for your clients . Lease And Loan offers from a Leasing Company increases sales!



Customer finance programs in Canada, via, are you ready : your firm! Is it possible? Absolutely. And the hard core reality - lease and loan offers from your firm substantially increase sales. Just think of our auto mfr's as an example!

But do you have to be, own, or start a leasing company to offer customer financing? The answer is a resounding ' NO ‘!

Let's examine why assisting your clients with customer financing can increase sales, profits and cash flows. Talk about a triple whammy!

When you look at putting together a program for you clients based on your products and services its important to fully realize and focus on a couple key aspects - they include revenue, accounting, and cash flow implications, all of which are generally positive in nature as they affect your firm.

The good news is that once you commit to a program and work a partner firm to put your program in place you're in a position to maximize sales and reduce sales lead times in your firm.

There are of course a lot of ' technical ' aspects to running any firm that offers financing. Most clients we talk to would never want to immerse themselves in issues such as funding, credit risk, legal and documentation issues, as well as asset management.

The good news - all you have to do is find a partner who will do all that for you... the cost... nothing other than a time commitment. That’s the key reason you want to partner with a leasing company who will make that investment in time spent with your firm to set up a proper program.

In general you should want to get into offering customer finance programs for your clients as a means to reduce the sales cycle, sell more, and generate immediate cash flow on sales . Now those are things all business owners and financial managers can aspire to!

Here's an even better reason to partner with a firm who can offer your clients lease and loan offerings - YOUR COMPETITION DOESN'T OFFER THIS! If they do all you are doing is making sure the playing field is level . It's dangerous out there!

Quick example - lets say your firm offers a product/solution in the $100,000.00 range. Your client perceives your product positively when bench marked against your competition. The problem - they can't afford it or it’s not in this years ' budget ‘. (The curse of the budget!)

The solution - working with a partner leasing company you offer the client immediate delivery of your product. Furthermore you indicate they can commence monthly payments in their next budget cycle. Oh and by the way you get paid immediately on shipment and acceptance of the products.

The quick summary - increased sales, faster sales, accelerated cash flow and a happy customer. Isn't that the business nirvana

we always dream about?

At the end of the day you want to be able to offer client financing solutions that help you accelerate growth and have your firm perceived as a value added vendor/supplier - offering your clients not only your product and services but an easy method under which they can acquire them.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in setting up a program that makes sense.

7 PARK AVENUE FINANCIAL
CANADIAN CUSTOMER FINANCE PROGRAM EXPERTISE





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/customer_finance_programs_leasing_company_lease.html

On Top Of Trends In Technology Leasing And Business Equipment Financing ? Smart Choices To Increase Canadian Lease Benefits

Successfully Managing Your Leased Asset Strategies


Information on technology and business equipment leasing in Canada . Benefit from asset acquisition via a capital or operating lease .




The ability to stay ' on top ' of what’s happening in technology leasing or financing your other business equipment needs gives the Canadian business owner two things: Options, and of course benefits!

The concept of ' change ' drives a lot of technology acquisition and finance decisions. Business owners and financial managers don't even seem to think twice these days about whether they need to acquire computers, telecom, software, and other ' tech ' type assets the reality is that those improvements to your competitiveness and infrastructure cost a lot!

And let's not forget to mention that new concepts such as Cloud computing, virtual, and grid computing, etc simply bring new burdens of decision making for the owner, finance manager, and IT manager in any small to medium size corporation in Canada. We're somewhat leaving out the larger corporation given they have the assets and tech savvy to wrestle down these challenges in a much easier fashion.

So how do you fund these acquisitions ... the goal seems pretty simple - buying the best and right products and services and paying or financing them in the best manner possible. Easier said than done.

When you think about it what you want to do is not that complicated conceptually - its simply about picking the right financing option and ensuring that the cash outflows, structures, and tax/accounting type benefits match what works for your firm . Again, we know what you're thinking ... easier said than done, right?

Don't forget also that in a perfect world you want to match benefits of your financed assets with cash outflows. That’s why the majority of tech assets are leased; business doesn't want to pay up front and reap benefits over time down the road.

There is a substantial amount of flexibility in the term, or amortization of tech financed assets. Typical terms available range from 2-5 years ... but we always caution business owners that long terms , while they lower the monthly payments, come with a cost re replacement, functionality, obsolescence, reduction in competitiveness, etc. So bottom line, watch the ' term'!!

While for many assets the business owner/ manager is always focused on the implicit interest rate in the least we caution lessees do not overly focus on the rate as opposed to the term, structure and type of lease, conditions , and the all important end of term decision - namely, return, replace, or upgrade .

And getting back to that ' interest rate ' issue, the reality is that in the current 2012 competitive leasing equipment marketplace clients have access to some of the best terms, rates, and structures within the industry, as the lease finance folks are busier than ever, and very competitive . Lease financing is available from bank subsidiaries, U.S. lessors with Canadian representation, and independently owned Canadian firms that service transactions in the small, mid, and large ticket asset area.

One word of caution though, not all firms are both experienced or even have an appetite for tech type assets such as computers, software, cloud computing, etc . It might be advisable to seek the service of a trusted, credible and experienced Canadian business financing advisor to wade through the lease industry ' jungle' on your behalf .

The bottom line - focus on type of lease, and working with the right party. Your ability to manage and finance tech assets will become much easier and give the business owner and manager the feeling that invested and spent funds for business equipment assets are achieving the benefits your firm deserves.

7 PARK AVENUE FINANCIAL
CANADIAN TECHNOLOGY FINANCING AND LEASING EXPERTISE








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/technology_leasing_business_equipment_lease.html

How to Get Your Canadian Business Equipment Financing Lease Approved

Tips for Asset Financing Success



Information on how equipment financing solutions can be successfully obtained . Asset lease financing for business growth / success






What is my rate?' is a question I am often asked by customers when they work with us with respect to equipment and lease financing. They are surprised when we tell them that they get to pick their own rate! (All customers want the lowest rate!)


We are not trying to be facetious when we make that statement. What we are saying is that the over all credit quality of a customer, as perceived by the lender ( that's important!) is in fact set by the customer, thereby driving a final approval on rate, term and structure of the proposed financing request.


The role of the customer, or their trusted advisor is to understand the basic credit information requirements and how the overall risk to the customer and their industry will be perceived by the lender. The irony of a lot of business leasing is that the industry for the most part used historical analysis to project future ability to pay. That is a difficult concept for the customer to handle more often than not - as an example the customer may have lost some money last year, driving a negative cash flow figure. Prospects have improved, new orders are coming in, and yet the business has a problem in getting new financing.


The customer needs to ensure that the information and ' story ' make the transaction become more ' approvable'.


Critical categories in the information submission by the company are as follows:


Length of time in business

Personal credit history of the owners

Relationships with other financial institutions

Quality of the financials (Some customers submit balance sheets that don't balance!)

Additional collateral available if necessary

Summary of key financial info such as depreciation, cash flows

Positive focus on management and its background and experience



If the customer is qualified to make such a submission a solid package as per our list noted above should lend itself towards an approval at current market rates and structures. If the customer feels they are not properly qualified to make such a submission they are strongly encouraged to used a qualified intermediary who knows the industry and, more importantly, knows the specific weighting given by a lender to the above noted submission requirements.


The amount of information required around each component is more often than not determine by the size of the transaction or the lenders total exposure to that customer. In many cases small ticket transactions (those under $ 25,000.00) are adjudicated via a credit application and public reporting sources such as Equifax or Dun and Bradstreet. Typically 60-70% of all small ticket transactions are approved.


In summary, customers who want to get a prompt and of course positive lease approval should focus on providing a clean package of required information that will ensure a prompt approval based on specific industry requirements around the transaction size and asset type.

Knowing that the lender will focus on future potential of the firm, the management experience, and the collateral asset are valuable data points for any business seeking a business equipment financing lease.
Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your equipment leasing needs when it comes to solid, ( and quick ) approvals .

7 PARK AVENUE FINANCIAL
CANADIAN EQUIPMENT LEASING EXPERTISE



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/equipment_financing_lease.html

Is Your Company Properly Exploiting Equipment Lease Financing In Canada ?

Equipment Finance In Canada is NOT an ultra secret project!


Information on equipment lease financing in Canada . Use these tips to exploit asset finance.




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

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


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

- Utilizing higher rates to compensate for risk

- Use of Security Deposits

- Use of advance payments

- Structuring higher payments in the earlier years of the lease

- Shortening the lease term to offset long term risk

Business owners should be aware of some additional enhancements that can further a financing approval when your firm might not fully qualify for your desired amount of financing and overall structure.

Let's looks at some of those additional enhancements that compliment the 5 areas we have noted above.
Business owners who are not familiar with some of these financial nuances should employ the use of a trusted leasing advisor with credible experience, thereby significantly increasing their chances of getting a lease financing approved.

Business owners might not always be comfortable with providing a Personal Guarantee on the transaction; however personal guarantees are a clear fact of life in the Canadian business financing environment. The logic of the lender, in this case your equipment lessor, is that you are more motivated to make those payments if you are personally obligated in the matter also. Naturally companies incorporate to avoid personal liability but business owners are often called upon by lenders, lessor, etc to provide a guarantee. It goes without saying that the lender will also want to validate the quality of your personal guarantee.

In many cases you as a borrower, or the lender might request, additional collateral on the transaction. This would be collateral that is currently unencumbered, but in effect shores up the lessors overall position, allowing your transaction to be approved. In many cases you will be required to provide some form of documentation (usually an appraisal) of the additional asst.
In some circumstances an effective additional collateral might be credit life insurance on the transaction - in a smaller of mediums sized Canadian firm the lender / lessor may rely on that insurance in the event something happens to the owner, that something being ' death ' of course!

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

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







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_equipment_financing_canada.html

Making Sound Choices With Your Leasing Finance Company? Canadian Operating And Capital Lease Solutions

Cover Your Assets With The Right Lease Finance Strategy!


Information on choosing the right leasing finance company for your capital and operating lease solutions . Know Your Common Types of Choices!




The right leasing finance company. Sounds like a simple choice, right? But the reality is that when it comes to selecting the right capital and operating lease solutions for your firm can you really say you feel 100% prepared.

Abe Maslow was a famous U.S. professor, widely published and studied. He once wrote ' when the only tool you have is a hammer every problem resembles a nail'! No pun intended, but talk about hitting it on the head ! Most Canadian business owners and financial managers know they need a finance solution ; they know lease finance works, but quite often are very unclear on some basic selection criteria you need to have under your business belt when it comes to signing on the dotted line.

There are several major categories of leases and one, probably not all, is the right one for any particular equipment financing you enters into. When you win at the asset finance game you no doubt have one step on your competition. So it’s a question of knowing which benefits might accrue most logically to your firm.

Unlike the U.S. where things are a bit more complex, the leasing finance company in Canada has two major products, the lease to own solution, aka ' capital ', and the lease to use option, aka ' operating '. The operating lease is also often referred to as a fair market value lease or ‘true lease' , and we hasten to add the capital lease is also known as a finance lease .

Each of these two products exists to serve some basic needs of your company. A key point that is often overlooked by the lessee is the fact that either of these two leases can in effect be ' bundled ' to include other of your supplier’s deliverables, including shipping, installation, warranty, maintenance, etc.

Although an operating lease could in fact include a bundled component more logically that is undertaken for clients who wish the lease to use, or capital lease option. In an operating lease these items would be fully priced out, and would probably increase the total ' all in ' rate you are paying.

The world of operating leases is diminishing a bit with the inception of new standardized accounting rules that are coming into effect on a global basis. Although many of the benefits of leasing in general come together in both capital and operating leases the whole operating lease scenario becomes a bit more of an accounting exercise .

In an operating lease there is no interest per se - that might seem confusing to many. But the lease is structured as a payment only scenario, with your choices, or obligations being the ability to return, upgrde, or purchase at the end of term fair market value.

You will not always see, or get clear explanations from a leasing finance company on the type of lease, capital or operating, that you are entering into .That because the Canadian marketplace has lessors with either small, mid, or large ticket focuses. It's up to you to know who is offering what, what they are calling it, and if things are as they appear and promised.

Speak to a trusted, credible and experienced Canadian equipment financing advisor who can assist you in separating the promise and the deliverable for your firms benefit.








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_company_lease_operating_capital.html

Business Equipment Leasing And Financing In Canada . When And With Whom To Lease

Carefully pick your partner and pick your solution in Canadian business lease financing .


Information on equipment leasing in Canada . When business lease financing makes sense, and what companies you should be dealing with .



As always, it's a question of the right time and right place. We're discussing business equipment leasing in Canada. When should Canadian business owners and financial managers consider lease financing for asset acquisition and use. We've got some basic checklists on what works when, and, as importantly, with whom!

We're forgiving you if you feel that the many advantages of equipment finance in Canada are sometimes overdone, or overstated. There is of course things such as ' pride of ownership ‘. Furthermore, some, certainly not all assets appreciate over time, or at least hold their value, so there are certain times when 100% purchase for cash / outright ownership seems to make sense.

Additionally, if you enter into an operating lease scenario you have certain obligations to purchase or give back the equipment at the end of the lease. What then, especially if a suitable alternative or upgrade isn't available?

It's just that we think we can count on one hand the amount of assets that appreciate over time these days, and items such as computers certainly aren’t one of them.

So when exactly should the business owner or financial management of a firm consider leasing? One of those cases might be when it's simply cost prohibitive to purchase an asset outright, or if the rates to finance that purchase via a loan seem too high.

Most businesses in Canada don't fully investigate the accounting and tax implications of a lease vs. buy scenario. If they did they might find that those benefits, coupled with a reasonable and affordable monthly payment make business equipment leasing an obvious choice.

Additional guidelines that might make you consider lease financing are areas such as equipment obsolescence, usage that is only temporary in nature, etc.

So now that you've determined when to lease the question becomes ' with whom ‘?! As you consider a lease firm you should, at the same time have a reasonable working knowledge of what type of lease you want. That translates into 3 basic choices in Canada, the lease to own, the lease to use, and the leasing back of your assets. Respectively these choices are known as capital leases, operating leases, and a sale leaseback.

We can imagine the inexperienced business owners or financials manager’s quandary, or indecision on who to deal with. In Canada you have 4 choices, and it makes sense to know the benefits and basics of each of these.

Your four choices are commercial finance leasing companies that are most often private firms specializing in leased assets. Choice # 2 bank leasing companies in Canada; these are closely tied to their parent companies, Canadian chartered banks. Choice 3 is often a fabulous choice, these are the prisoners! Prisoners? Well actually we mean captives, they are finance firms related directly to the manufacturer of the business equipment you wish to lease.

Choice # 4 is often the safest bet. It's a Canadian business financing advisor who has knowledge and relationships with all of the above firms .These players, with the right credentials and reputation can bring true value and save you thousands of dollars on any single transaction. Look for past experience, credentials, etc.

Knowing when and with whom to finance your assets can put your firm on the track business financing success.






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/business_equipment_leasing_financing_lease.html

DIY Equipment Finance & Leasing Canada ? Best Companies for Asset & Lease Equipment Needs

When the Canadian business owner or financial manager looks to the leasing of an asset, as opposed to a purchase it’s a great time to invest in some knowledge around which companies to approach for equipment finance needs.

But can you be expected to be a ' DIY ' expert in this broad area of Canadian business financing. What we are saying is that it will pay you handsomely to either invest some time in understanding some key fundamentals of equipment finance, or, alternatively work with an expert who can assist you.

Why invest some time in this type of business acquisition? Simply because the Canadian lease landscape has evolved significantly over the last couple years. A combination of the economy in Canada, the lease industry players, new accounting rules and a myriad of product offerings can make it seem daunting.

By the way we're quite sure any business owner can work with lease companies and enter somewhat quickly into a lease for an asset, but is it the right lease and what are the financial implications and benefits or lack of benefits around that transaction. That’s the $ 50,000 dollar question!

Because almost 80% of all business utilize leasing Canada - that’s why it sometimes is both easy and mis- understood. Many business owners simply don't either under the lease product/service offering, or, alternatively fail to recognize the benefits. Yes, its only one method of financing an asset (you can consider a term loan)... but when a lessor / lease company’s recognize you know what you're talking about you have simply increased your chances for success.

Lease and equipment finance doesn’t bring cash flow and working capital into your company, but boy does it reduce the amount of funds that go out of your firm! The ownership of the equipment from by the lessor, for the term of the lease allows you to structure payments, write off payments as an operating expense, and more importantly keep you ' nimble' when it comes to assets and technologies that you finance over short or long terms. (Typical lease terms in Canada range from 3-5 years).

Business owners might want to do the math but we're quite sure that if you work the numbers it makes sense to enter into a couple of short term equipment finance transaction rather than purchase/buy outright the same assets over a number of years.

If you do invest time in understanding some lease finance basics, or alternatively work with an expert you'll see that you can actually determine when it makes sense to either upgrade, return, or renew any lease finance transaction.

Can our DIY lease financing business owner affect the final credit and structure approval of his or her transaction? The reality is that tougher credit standards are in place since the 2008-2009 global recessions. Therefore the industry focuses on creditworthy lessees- but the good news is that some basic structuring around any transaction can still make your deal happen. Issues such as term, pricing and down payment can be negotiated to the point where it makes sense for the lessor and your firm.

Working an experienced Canadian business lease financing advisor can ensure you get the best pricing, structure, and achieve the benefits you're looking for.

So, everyone’s talking about ' DIY ' these days. Why not invest some time in developing a solid relationship with a lease advisor? Success in asset leasing allows you to grow your company with the assets you require... 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 .Info re: Canadian business financing & contact details :


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

Guess What Canadian Business Financing Equipment Company Has The Best Finance Lease For You ?

Think about it... Should you really have to be ' 'guessing ‘which business financing equipment company has the right finance lease for you? We don't think so, that’s for sure, so let's give you solid info on how to select and work with a great financing partner.

Many business owners and financial managers in Canada simply don't realize there are well over a 100, if not more finance lease firms in Canada. If you have all the time in world (you don't - we're sure of that) you could start at 'A' in the yellow pages. Want a better way? First determine why you lease equipment.

Why you lease equpment invariably revolves around the asset type that your firm finances. The equipment finance company you work with, more often than not, specializes in certain asset categories. Also, Canadian business often does not realize that the size of a transaction determines who you work with - simply because your new business financing partner also has its own restrictions on how much it can lease, and to whom.

‘Size counts ‘... or ' Size doesn't count ‘are expressions we hear a lot these days. In Canadian equpment financing when it comes to a finance lease size does count. But it's not your problem; it’s your equipment company that has that challenge. In Canada the entire leasing industry is broken down into 3 tiers. Those three tiers are small ticket, mid ticket, and... you guessed it ' large ticket '.

So a bottom line great piece of advice we can give you is simply to ensure that whether you are financing a 2,000$ photocopier or a 20 Million dollar corporate jet you need to focus in on selecting the equipment finance company that specializes in your asset and size category . Right away we've saved you tons of time, right?

Do you change your key suppliers every time you purchase something for your business? We certainly don't think you do that, so surely you can see the benefits of working with a lessor on a long term relationship basis. But getting back to our time management issue how does one do that?

You need to focus in on a partner firm that specializes in the asset sizes and asset types of equipment that you finance. Don't have time to do this? Your decision just got a lot easier - simply seek out the service of a trusted Canadian business financing advisor who specializes and has experience in equipment company finance lease transactions. That resource can save you time, and even money, as many small nuances in lessor pricing strategies can cost you thousands of dollars if you don’t have the right advice behind you ,

Key attributes of a long term business financing partner are of course listening to you needs, and flexibility in structuring transactions that make sense for you firm. You also have to be flexible of course, as a key part of the lease finance decision revolves around your firm’s credit quality - which determines the pricing and structure of all your equipment financing needs.

In summary, simply focusing on working with an expert in lease finance can save you time and dollars in a large manner - and as we have shown, taking the time to understand how the market is segmented in Canada will also benefit your long term finance strategy when it comes to leasing.
And help is on the way by simply called a trusted, credible and experienced Canadian business financing advisor with a background in what you need to accomplish. That removes your guesswork, don't you think?


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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/business_financing_equipment_company_finance_lease.html

The One Thing You Need To Know About Canadian Machinery Finance Equipment Lending To Make Your Lease Or Loan Work !

We're going to turn that one thing you need to know about equipment lending for your machinery finance and other lease and loan needs into a multitude of good news benefits !

Let's share and explore some tricks of the trade to make your equipment financing loan or lease strategy more profitable than you ever thought it could be, with options we are pretty sure you have never even heard of that have the potential to turn your lease financing of your assets into a profit center under the right circumstances.

Today we are focusing on the type of decision you make at the start of your machinery finance lease decision. We refer to machinery but of course we're referral to all tangible assets you choose to finance.

When Canadian business owners and financial managers commence the equipment lending process for their financing needs they often, unfortunately do a poor job of determining how they will handle the end of the lease option. This option can make or break the overall cost and profitability around your lease finance decision.

Let's use one practical example and demonstrate our point. Let's say you are following our advice and make a conscious decision that the asset will last you 5 years. (We are sure not talking about computing technology of course! - No 5 year terms recommended on technology!)

What you need to do now is ensure that any analysis you make around the cost of ownership to the same term as you have picked for your lease. Mismatching those costs and benefits is highly inappropriate.

So, back to the core of our subject, which is the one thing you need to know - and that is that you have numerous profit and cut your loss type strategies at the end of your lease. Some of this is determined by what you sign up front, further enforcing our point that you need to view the whole equipment lending cycle in your mind at the start of your transaction.

Ok, let’s make some money, or cut our losses. How do we do that ? First of all , if you know for sure that you have a good handle on the assets useful life based on your experience enter into an operating lease , not a capital lease to own, thereby giving yourself the flexibility to return the equipment to the lessor at the end of term . Let the lessor take the risk on the asset and its disposition.

That same operating lease strategy has a dual benefit, if you are at the end of the term, and you think the asset is performing well and generating revenues and profits then agree to purchase the equipment from the lessor at the end of term. Don't forget that you and the lessor need to agree on what its true fair market value is.

Want to renew the lease at the end of our 5 year term - with a view towards still owning the asset. Then negotiate forcefully with the lessor for a reduction in your monthly lease payment. Can you do this? You sure can, because the lessor has already extracted all their profit on the original deal, having assumed you would terminate the transaction.

Here a true secret profit strategy. If you feel there is significant useful life in the asset consider purchasing it from the lessor at its fair market value and then sell or rent it to another firm who might need it. You just turned a former equipment lease liability into a profit center!

One final strategy is to purchase the equipment based on your knowledge of its value, use it for a specified period, and then trade it in for a new upgraded asset - thereby lowering your lease cost on the newer asset!

So, whets our bottom line. It’s simple. You need to be informed about the lease life cycle, understand what the equipment lending cycle is all about when it comes to your options and flexibility. Whether it’s a machinery finance loan, computing technology, or an aircraft, the ability to see your end of term options at the start of your equipment lending decision will make or save you thousands of dollars.

Speak to a trusted, credible and experienced Canadian business financing and leasing advisor to reduce your costs and improve your profits by sound lease finance knowledge.

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Stan Prokop is founder 7 Park Avenue Financial ;

see http://www.7parkavenuefinancial.com
Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:

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

Not Getting All The Lease Equipment Financing For Business You Need ? Financing Loans Made Simple !

Rumour has it you aren't getting your share... of the amount of equipment business financing enjoyed by your competitors and others. Let’s demonstrate how finance loans can be addressed in a timeline that makes sense for your firm, with the rates, structures and terms that your competitors already enjoy.

We don't think we have met any business owner recently who doesn’t feel that the traditional route or bank borrowing no longer makes sense for their asset acquisition needs. We don’t have to explain the benefits of dealing with a specialist in any industry, so the firms that offer lease financing in Canada is where you will find financing products that work for you.

We also don’t need to mention of course that if your firm is a start up, smaller in size, or perhaps going through some challenges... well... guess what - you are still a 100% candidate for lease and financing loans .

Many owners and managers searching for equpment financing for their business needs are under the pre conception that certain assets can't be financed. That’s where you ability to quickly focus in on a specialized firm that provides business lease solutions for your acquisition - and that includes computers, office equipment, plant and machinery assets, vehicles, and even intangibles such as software !

We are always intrigued by the reasons business owners offer up for leasing consideration - however when you think about it all those reasons come down to several key points - cash flow and working capital management, tax and accounting issues, matching the use of the asset to its estimated life . While every Canadian business owner likes to feel their needs are unique we are pretty sure that if you walk through those 3 key areas we noted above you will be able to significantly simplify your business equipment financing.

Is there a way to simplify the entire process? There sure is. Simply view what we will call ' the big picture ' around your transaction. Envision it as follows - your application and exchange of financial info with your lessor, discussion or correspondence leading to approval, documentation, and then finally funding and payment... which is often simply the payment made to your supplier , allowing you to receive the asset and put it to work for cash flow and profit generation .

There are hundreds of equipment financing and lease financing firms in Canada. We are quite sure you do want to ' simplify ' your business financing so speak to a trusted, credible and experienced Canadian business financing advisor who can ensure your business lease is positioned properly, approved, and funded . Now you are getting your share!
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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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Don't Let ' Good Enough' Be Acceptable In Canadian Equipment Leasing When Structuring A Business Equipment Loan or Lease

Is ' good enough ' acceptable to your firm when you are looking at equipment leasing and arranging a business equipment loan or lease in Canada. We don’t think so and we'll share some fundamental info and strategies that take your business financing to the next level when it comes to benefits.

You have arrived at the lease or buy decision base on your need for new fixed assets for your business. Financing those assets out of regular cash flow, or entering into cumbersome bank loan arrangements isn’t an option.

The use of the asset over the long term should be what drives your financing decisions. Longer term assets require long term financing, and that's what equipment leasing is all about - matching the useful economic life of your asset to your cash flow and financing structure.

We encourage clients to take a hard look at lease term. Don’t let our ' good enough ' statement overtake your decision to properly match he asset term. Many lease firms that are focused on offering one type of term, or one type of lease (there are two types) are going to try and sway you towards their product or service offering. If there were only one lease company in Canada that would be problematic - fortunately there are hundreds!

Business owners and financial managers need to separate. What do we mean by that ?W mean that you must separate the manufacturer and the price of the equipment from the financing . If you are dealing with a mfr that is also the financier of your asset make sure you maximize the benefits of that type of financing, known as ' captive financing ' as its often the best available in terms of rate term , an structure .

The lease financing industry preaches ' 100% ' financing for your business equipment lease and loan needs. The reality is though that often times a down payment of security deposit is required. Make sure that request is reasonable, and competitive, don’t fall into our ' good enough ' scenario of having to accept every term or down payment that is specified in your finance offer.

Structuring is what lease financing is all about. Be armed with a cash flow analysis that makes sense for the type of asset you are acquiring. Remember, if you don’t ask or request a ' vanilla ' or typical lease solution will be offered up - you don’t have to accept that if your cash flow needs, business seasonality, or term of the lease are particular to how you want to benefit from lease financing.

Let's take a quick example - let’s say you are leasing a 100k computer system. The lessor offers you a 5 year lease based on your firms overall credit quality, and requests a 20% down payment. and specifies payments of 1685/mo . Did you know that in many cases you could get the same lease payment for a 3 year term, saving you two years in payments? That’s by utilizing an operating lease and shortening the term. Again, back to our point, don’t let ' good enough ' be your only choice in asset financing.

In summary, every firm in Canada has unique financial needs, and you need lease financing payments, terms, and structures that work for you. Don’t accept ' good enough ' in business financing. Speak to a trusted, credible and experienced Canadian business financing advisor on how you can truly maximize financial benefits of a business equipment loan or lease.

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

How To Get Best Lease Rate On Equipment Financing And How Approvals With Leasing Rates Are Calculated In Canada

‘What’s my lease rate? ‘is a question I am often asked by customers when they work with us with respect to equipment financing approvals

They are surprised when I tell them that they get to pick their own rate! (All customers want the lowest rate!)
I am not trying to be facetious when we make that statement. What we are saying is that the over all credit quality of a customer, as perceived by the lender (that’s important!) is in fact set by the customer, thereby driving a final approval on rate, term and structure of the proposed financing request.

The role of the customer or their trusted advisor acquiring lease rates for asset acquisition is to understand the basic credit information requirements and how the overall risk to the customer and their industry will be perceived by the lender. The irony of a lot of leasing rates in the business of leasing is that the industry for the most part used historical analysis to project future ability to pay. That is a difficult concept for the customer to handle more often than not - as an example the customer may have lost some money last year, driving a negative cash flow figure. Prospects have improved, new orders are coming in, and yet the business has a problem in getting new financing.

The customer needs to ensure that the information and ' story ' make the equipment financing transaction become more ' approvable'.

Critical categories in the information submission by the company are as follows:

Length of time in business
Personal credit history of the owners
Relationships with other financial institutions
Quality of the financials (Some customers submit balance sheets that don’t balance!)
Additional collateral available if necessary
Summary of key financial info such as depreciation, cash flows
Positive focus on management and its background and experience

It's these factors that affect lease rates in Canada.

If the customer is qualified to make such a submission a solid package as per our list noted above should lend itself towards an approval at current market rates and structures . If the customer feels they are not properly qualified to make such a submission they are strongly encouraged to use a qualified intermediary who knows the industry and, more importantly, knows the specific weighting given by a lender to the above noted submission requirements.

The amount of information required around each component is more often than not determined by the size of the transaction or the lenders total exposure to that customer. In many cases small ticket transactions (those under $ 25,000.00) are adjudicated via a credit application and public reporting sources such as Equifax or Dun and Bradstreet. Typically 60-70% of all small ticket transactions are approved.

In summary, customers who want to get a prompt and of course positive lease approval should focus on providing a clean package of required information that will ensure a prompt approval based on specific industry requirements around the transaction size and asset type.

Knowing that the lender will focus on future potential of the firm, the management experience, and the collateral asset are the valuable data points regarding lease rate approvals for any business seeking a business equipment financing lease. Speak to a trusted, credible an experienced Canadian business financing advisor for the help you need for great lease finance rates and prompt approvals .


--

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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

How Financing Options In The Canadian Equipment Leasing Industry Can Benefit or Harm Your Overall Profitability When You Lease Equipment !

As a Canadian business owner and financial manager you need to investigate your financing options when you lease equipment. Equipment leasing provides you with a combination of rights and obligations.

One critical area is the type of lease you choose and any residual values associated when you lease equipment .These residual values may represent an additional significant profit to the lease company in the transaction. Are there ways you can actually profit from the type of lease you choose? We think there are, and we will demonstrate how

The residual value is a solid portion of the lenders over all ' return ' on the transaction. Again, lessor return often equates to lessee shortfall, and you are the lessee!

So what is that residual value? At the end of the term of any lease there are options that any savvy borrower should both negotiate and understand. If You enter into a ' true operating lease ' then you have the option to return the equipment to the lessor (or maybe it is the manufacturer itself) when the lease transaction has terminated. Many major manufacturers of equpment, computers, etc have large in house leasing divisions which are profit centers for their financing options they provide customers.

When the equipment is returned the lessor re-sells the equipment, or in some cases actually rents or leases out the equipment again, obviously on a ' previously used ' basis. In the construction or aircraft industry assets can be used as long as 10- 20 years!

Borrowers need to understand that the potential profit the lender/lessor realizes on a transaction hinges significantly on the final value of the asset at the end of the term.

Let's use a simple example. If a customer purchases something for a value of 100.00 and wants to lease it the lessor will perhaps estimate that the equipment will be worth 10% of its original value, or in our case, $ 10.00 at the end of the term of the lease. He will often base his rate on the expected recovery. Naturally the lender could receive more or less at the end of the lease term - he bases his price and interest rate accordingly.

Borrowers therefore might want to significantly investigate the residual value being contemplated in this type of operating lease transactions, and, in some cases, invoke their right to buy the equipment at the end of the lease. It could in fact be resold for a profit if the company has a strong sense the asset will maintain its value. Again, think aircraft and construction equipment in the equipment leasing example we used.

Naturally lease companies want to earn a profit - the question becomes what a reasonable profit is and is at your firms expense.
Speak to a trusted, credible and experienced Canadian equipment leasing advisor who can provide you with real financing options when you lease equipment that make sense from your perspective, the borrower!
--
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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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