WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Showing posts with label leases. Show all posts
Showing posts with label leases. Show all posts

Monday, July 2, 2012

Capital Or Operating Lease . Your Choice ! The Why And When Of Leasing Finance When Your Company Leases Assets



Canadian Lease Finance Solutions – Why Not Now?

Information on capital and operating lease solutions . Canadian leasing finance choices when it comes to your asset leases .



Leasing finance in Canada. Canadian business owners who are seeking rates, terms and structures for asses that generate (hopefully) revenues have a number of choices, one of which is the type of leases they enter into. The Operating and Capital lease is in fact the main choice or decision point.

The ability to free working capital and not deploy it into the purchase of fixed assets is in fact a key benefit of leasing in Canada. And as most business owners hopefully know, you also have the ability to finance used equipment when it makes sense.

The concept of matching is very important when it comes to leasing finance in Canada. Your firm has the ability to use the asset to operate as well as generate profits, but cash outflows, i.e. the monthly payment are made over a pre-determined amount of time.

Getting back to leasing finance choices your ability to return, upgrade, or extend a lease is in fact the reason why most business owners choose an OPERATING LEASE scenario.

Does every business owner / financial manager know the benefits of leases? We're never 100% sure when we talk to clients, but the main benefits are 100% financing of the asset, although some firms we point out may be required on occasion to make a down payment of security deposit. Your overall credit quality will determine advance payment requirements, as well as your rate.

Most clients who are concerned about the ' rate ' in the transaction are in fact surprised when we tell them the actual rate or pricing is in fact much more in control of the lessee - Thats you !.. when you understand your firm’s credit strength and can demonstrate it .That's because leasing in the current 2012 Canadian business environment is in fact highly competitive.

Using the services, as an example, of an advisor you have the ability to access the right type of leases when it comes to price, term, etc.

Cash flow management is critical today to day business in Canada. Knowing your payments are fixed allows you to manage cash flow and be proactive when it comes to sourcing assets that make sense for your firm.

The world of tax, accounting and balance sheet implications can be somewhat ' murky ' when it comes to an operating or capital lease solution. Again, that advisor, or even your external accountant can in fact help you in that regard, and that advice is usually free.

Technology, as no other asset class is, makes a great case for leasing. Specific needs, obsolescence, off balance sheet financing, and reduced leasing costs play a key role in any aspect of tech finance.

Speak to a trusted, credible and experienced Canadian business financing advisor when it comes to choosing an asset finance strategy that makes sense for your firm.






7 PARK AVENUE FINANCIAL
CANADIAN LEASE FINANCE 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/operating_capital_lease_leasing_finance_leases.html

Sunday, January 8, 2012

Equipment Loans And Leases In Canada ! Which One Of Three Options in Business Leasing And Financing Works For Your Firm?



Leasing Business Assets Makes Sense - 80% Of Canadian Firms Utilize This Financing Strategy



Information on equipment loans and leases in Canadian business asset financing . Which leasing options works for your firm?




The need is often there, but the solution might not be always as obvious as it seems. We're talking about equipment loans and leases in Canada - those unique structures that allow business leasing strategies used by your firm to acquire financing for the assets it needs... to operate, survive, and grow!




When Canadian business owners and financial managers are faced with the challenge of fixed asset finance their oft immediate option is the traditional business loan. This might be a bank term loan for example. The criteria, we in the industry call it ' the credit bar ' might often be fairly high to achieve the types of term financing you need on structures that make sense for your firm.




So, if that was Plan A, and Plan A doesn’t work, whats left? The answer, quite simply is equipment leases for business financing. Rates and terms are quite competitive to the bank, and Canadian business, in general we feel, seems to think that lease financing proceeds with less of a ' hassle '.




Your equipment needs might be from several aspects of your business, computing, machinery, office equipment, etc. All of those assets of course run your company; they're important.




We spoke of the bank term loan as an option, the other more obvious one might have been a cash purchase , using the funds ( if they are there !) to acquire the equipment outright . However, using that capital in this manner if often a classic ' mismatch ' of funds; your firm, incorrectly so, is using short term cash for long term asset acquisition. Bottom line, not a good thing. The reality is you want to use those funds for operating and revenue growth.

That then brings us to what we feel what might be the optimal solution in business financing for assets, ' leasing '. Your new found ability to acquire assets with little or no down payment, bundle in other costs such as shipping, installation, warranty, etc becomes a solid new strategy for asset finance for Canadian business owners.

When utilizing lease finance you are in effect leveraging your cash flow, getting the most out of it, all the same time matching outflows of cash with future inflows of sales and profits arising out of the use of those operating fixed assets you are financing. Our strategy clearly works best for companies who find they need to constantly refresh assets such as computing, or shop floor equipment.



Oh, and by the way, thousands of businesses that don't qualify for bank term loans for assets do in fact always qualify for lease financing. Transactions are structured on a combination focus on the value and use of the asset, your current and future cash flows, etc .Oh, and by the way, your lease payments can generally be expenses and set off against tax obligations.



We spoke of three options in Canada under equipment loans and leases financing scenarios. Those three options are capital leases, operating leases and sale leaseback of assets you own already. Each of these options has different benefits, and gives your firm different rights and obligations. Speak to a trusted, credible and experienced Canadian business financing advisor to identify which of these 3 options make sense for your firm.




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_loans_leases_business_financing_leasing.html