Innovative Financing From Canadian Leasing Companies . Mastering The Lease Versus Buy Decision

Information for Canadian companies seeking financing from leasing companies . Master the lease versus buy decision and reap the financial benefits .



At one point or another Canadian companies of all size realize that financing new or existing assets via leasing companies in Canada works far better than buying those assets; in effect they have mastered and understood the lease versus buy decision.

It's never hurts for us to cover the basics with clients, so we constantly re-enforce the fact that equipment leases and loans allow you to stay ahead of the technology curve in your industry - in effect you have the ' latest and greatest ' with which to compete .

Conservation of capital is also a key point at the top of our list; in effect you don’t have to service a bank term loan for the asset. Bank loans for assets also have related issues that can significantly impact your firm, such as reduction in your overall borrowing arrangement, etc. It's no secret then that 80% of all North American businesses lease some assets they need for their firm.

Your monthly payment of course is dependent on the asset size and the structure of your lease or service agreement with leasing companies in Canada.

Innovation in financing via a lease often comes from the type of lease you enter into. In Canada two primary offerings are on the table - the capital lease, aka ' lease to own ', and the operating lease, which we can effectively call the ' lease to use'.

Innovation abounds in operating lease financing. It’s the ultimate solution for investments you make in areas such as technology, telecom, etc. Most borrowers, (and we definitely don’t agree with their focus) tend to hone in on the monthly payment. In an operating lease the monthly payment is significantly lower, anywhere from 5-20% depending on the asset size and type.

At the end of the term of your operating lease the equipment is not fully paid for. Don’t worry, that’s a good thing, because a properly structured operating lease via Canadian leasing companies allows you to at that point consider purchasing, returning, or continuing the arrangement. Those options are standard in a properly structured operating lease.

While payments on a capital lease are higher don’t forget that you own the equipment at the end of the term. This of course can be a double edged financial sword! , given that the equipment might have either significant value, some value, or no value. On balance we would say that the majority of companies that enter into a capital lease scenario do so mainly because they want to conserve cash flow.

We referenced the ' lease versus buy' decision. That’s the term referred to as the Canadian business owner or financial manager tries to decide whether he should lease or buy an asset.


Is any financial decision always 100% right? Of course not, so when it makes sense buying an asset gives you ownership of the asset, plus your ability to control the ultimate use and residual value. In some cases your accountant might be able to show you buying is less expensive than lease finance.


We tell client that in the financing decision process they should consider things such as the final monthly payment, related services to the asset that are financeable, their purchase options, as well as the cash flow effects of the transaction . Oh and by the way, most busines owners quickly realize that lease financing is easier to obtain and receive approval for. Leasing companies in Canada are thriving and want your business.

Speak to a trusted, credible and experienced Canadian business financing advisor on how innovative financing from Canadian leasing companies might make sense for your firm. You'll have mastered the lease versus buy decision!





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_versus_buy_financing_leasing_companies.html

An Equipment Loan Might Not Be What You Think! Kick Starting Asset Financing Success With Canadian Leasing Companies

You’re One Step Away From The Benefits Of Lease Financing Approval


Information on effective strategies to deal with leasing companies in Canada. Equipment loan and asset finance tips for financing success





Unfortunately a huge number of Canadian business owners devote a huge part of their time in business life to asset finance; in effect trying to find capital for their business. Many times the solution to that challenge is with leasing companies in Canada ready and willing to provide those business people with equipment loan and lease financing.

What then are some of the key issues that get you one step away from business financing success when it comes to acquiring assets for your firm? As a business owner or financial manager you want to get the amount of capital you need with the least amount of risk you are willing to take on via debt.

Leasing companies, via asset finance in Canada are one of essentially five ways to raise capital for assets. (Those other four are of course supplier loans, bank financing, term loans, or equity injections from owners).

Why then do 80% of business owners in North America constantly utilizing lease finance as a business strategy, instead of simply buying the assets? Flexibility is one reason, your assets can be financed on shorter terms , via a ' lease to use ' type strategy, or longer amortizations via a lease to own transaction .Depending on which of the two you choose you again ( and here's our flexibility again ) can either return the asset or take ownership of it .

Canadian accounting practice sets up specific rules that deal with different types of lease strategies , either recording the lease on your ' books ' or in some cases, via an operating lease setting your transaction up as an expense . As boring as it might seem to spend some time on lease accounting implications the right choices in this area can save you a lot of dollars, and grief ! .. when it comes to financial reporting, tax time, etc.

Clients seem to slowly get the point here, in that your lease management becomes part of your overall business strategy, and takes some planning. It’s a good vehicle for getting some communications between the users of assets in your company as well as the finance side of the business!

In that manner we ' preach' to clients that lease arrangements are driven from several areas of management thinking:

The ability to borrow

The convenience provided by leasing companies

Risk avoidance in asset ownership via an equipment loan

Tax and accounting implications/benefits


One of the most powerful examples of risk avoidance in asset ownership via assistance from Canadian lease companies is the area of technology and computer financing. Who in their right mind, asks the business owner, wants to take on the risk of technology obsolescence in the area of computing, which seems to change every 5 minutes, including the newest grey area of computing, ' THE CLOUD '.

Does an equipment loan or lease have a lower or higher cost? That’s a typical question from many clients who are at the crossroads of the lease vs. buy decision. This is where your finance folks or accountants take variables into effect such as your firms cost of borrowing, the rate in the lease , and hopefully always making every aspect of their comparison an ' apples to apples ' assessment .

Other factors in the lease vs. buy decision might include down payment scenarios, credit covenants with current lenders, depreciation policies, residual value of the asset at the end of the lease or loan, etc!

As we have shown, an equipment loan or lease might not always be as simple a consideration as you might think. But it continues to be the financing of choice, everyday, for thousands of Canadian businesses. Speak to a trusted, credible and experienced Canadian business financing advisor today about getting on track with Canadian leasing companies for asset finance.





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_companies_equipment_loan_asset_finance.html

Having Difficulty Choosing The Right Equipment Loan For Asset Financing Needs in Canada ? 4 Leasing Company Choices

Business Lease Finance Options That Work

Information On 4 equipment loan Sources in Canadian Asset Financing . Do you know which leasing companies You Should Be Dealing With



Canadian business owners and financial managers are often faced with the decision of who to turn to when making decisions on equipment loan and asset financing. You have essentially 3 difficult decisions and one easy one which we'll share with you.

The reality is that if you're not a business equipment financing expert there are a large number of equipment lessors out there - the challenge is pretty simple - ‘which one is right for your firm?'. For those that aren’t fully aware of how the equipment financing market is structured in Canada it’s a case of really determining which lessor business model, and credit box (credit box?) fits your needs.

Let's examine the things you need to know to get a ‘perfect fit' in equipment loan and asset financing needs.

Potential partner # 1 -not who you might think it is. Canadian chartered banks. In recent years banks have invigorated their interest in equipment financing, and they compete strongly with independent commercial financing companies through leasing subsidiaries or divisions. Banks themselves can only write loans, so they use their lease subsidiaries to write real leases. The challenge to obtaining some of the best rates in equipment finance via a bank is your ability to meet credit criteria. In addition to the asset collateral banks will demand strong balance sheets and positive and sustainable cash flows. Note also that typically banks only write capital l eases, or lease to own transactions - operating leases generally not available.

Potential partner # 2- The main competition to the banks in Canada are independent commercial leasing companies. These may be small, large, Canadian, or U.S. owned. This is most likely where you will get the most creative structures and market pricing that fits your overall credit quality. Almost any asset can be leased in Canada, including technology and software. Unlike the banks operating leases are potentially available also.

Because these firms borrow from insurance companies or banks to fund your transaction the overall cost of financing is pretty well always going to be a bit higher. In Canada the equipment financing market is broken down into small ticket, mid ticket and large ticket transactions. We speak to a lot of clients who have wasted time by either choosing the wrong type of leasing companies, or who don’t understand the approval criteria of any given firm.

Potential partner # 3 - You're being held captive here. Captive? Captive finance firms are divisions or entities of large vendors who sell to you. They have formed their own leasing division and asset financing vehicles to offer capital leases, operating leases, and in some case even rentals. Rates are generally quite competitive and the added advantage here is that they are incented to sell you their product also, not only finance it, so credit criteria is often relaxed a bit. These firms make acquiring their products simple, which is a benefit to the Canadian business owner.

Knowing which potential partner to utilize for your equpment financing needs is critical. But how do you not waste time in talking to, investigating, and sharing your firms confidential financial information with tens or hundreds of firms. That’s solution # 4- utilizing as a partner an independent Canadian business financing advisor who knows the entire market and can save you time and significant dollars in sourcing the right funding that matches y our needs.

Their services tend to be no charge to your firm and solid equpment financing advisors are well known and respected by the industry itself - therefore your transaction is a valued one. In searching for a great advisor spend time testing their market knowledge, contacts, and references.




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_loan_asset_financing_leasing_companies.html

A Common Sense Way To Choose Canadian Business Leasing Companies For Equipment Loans – A Lease & Loan Alternative

Make the Right Choice for Lease Finance in Canada



Information for Canadian business on choosing the best method to select leasing companies for equipment loans – A lease and loan alternative selection process .




Rest assured you're in the same boat as thousands of your competitors - and whats that boat about? Simply not knowing who or what to turn to when selecting business leasing companies for an equipment loan for your business. More importantly, leases and loans that makes sense, not the kind where you wonder if your firm got a transaction at market rates, terms, and structures.

So is there a fast track to selecting the right lease finance company for asset financing that works, and makes sense? There are a couple of challenges we try and help clients overcome, not the least of which is the fact that there are tens and literally hundreds of firms all across Canada that ' seemingly ' fit your needs. And, and it’s a big and... if you have all the time in the world to develop relationships with these hundreds of firms, well then... let’s just say we're jealous!

But not knowing who to turn to can in fact, as many clients have experienced, cost you tens and thousands of dollars, depending on your past experience with leasing companies in Canada. One alternative is of course to send a lease bid document out to a large number or select number of parties. That makes sense for government agencies and large corporations probably, but not for small and medium sized businesses in Canada.

The reality is that all those lessors out there have their own unique business models, and are you ready... because this could be painful... they are going to try and fit your firm in a box . In a box? We're talking about the ' credit box ‘... that elusive credit policy that seems to be understood, by the lessor, but not perhaps yourself. You see each firm (who by that way had to go out and borrow money to lend it to you) has a credit box. In that box is a set of criteria around asset types, deal sizes, ratios, covenants, personal guarantees, outside collateral, years in business... well we think you get the drill

And oh yes, if there were one type of business equipment leasing company in Canada the search for asset financing might not be so daunting. In reality those hundreds of different firms are actually in 4 sub categories.

Those sub categories are bank lessors, independent leasing companies, captives (ouch! that even sounds painful - do they have a box also?) , and insurance companies.

So do we have a favorite and a recommended solution for each and every business owner and financial manager in Canada? Actually we do its number 5 in our list of 4! We're talking about an independent, experienced, trusted, and credible Canadian business financing advisor... one who should be an expert in lease financing. Utilize their experience for market knowledge, eliminating financing sourcing time, and ensuring you are getting market rates in the current low interest rate environment of 2011 where in fact lease financing is very competitive and wants your business. Adding value and saving your firm money is a powerful double punch in Canadian asset financing.




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_companies_equipment_loan_loans_business.html

How To Work With The Best Canadian Leasing Companies In Business Financing and Financial Services ?

As a business owner you love informed choices. When you are looking for asset acquisition via equipment financing you need leasing companies and business financial services advice on the best way to achieve finance success - and that requires being informed on equipment leasing.

So whats the scoop on the current equipment finance situation in Canada? Most business owners know that the ability to achieve the business financing you need became extremely difficult over the last couple years. Leasing companies were affected just like others - in fact many companies disappeared, were bought up, and most importantly, lost critical sources of their own funding - the bottom line..? They were looking for financing just like you!

The good news. You may have even seen the commercials ' Leasing is back!’. Those commercial refer to auto leasing, we're talking today about fixed asset financing for your Canadian company - and that includes everything from machinery to technology to heavy equipment, software, office equipment, you name it .. Our last transaction was for school buses..!

So, if leasing companies are back, let's just ensure you have a solid understanding of the benefits of lease business financing and, more importantly, who you should be working with.

Asset Financial services via leasing is simple - its a ' loan ' in which your leasing company purchases the equipment for you ( or from you.. via n equipment lease back ) and then of course leases it back to you at a monthly rate for a specific period .

Is it appropriate for your firm? Thousands of companies utilize this form of business financing everyday, in fact stats show over 80%! Another great thing about the best leasing companies in Canada is simply their ability to finance any asset for firms of any size, including start up.

The best Canadian leasing companies tend to differentiate themselves by the customer market they tend to specialize in - In Canada the industry is dominated by captive finance companies ( firms which lease only their parent company products and services ) as well as segments devoted to small ticket, mid ticket and large ticket asset financing.

We have always felt that the best firms provide quick turnaround on approval that seems to be a key focus for many clients looking for quick approvals for their asset finance needs. So ensure you understand the approval process, which typically is just an application, and, if the size of the transaction requires, your firm’s financial statements which are revived for only purpose - ensuring you have the ability to pay back the lease!

Your best leasing companies in Canada will ensure you understand the cost of financing. That cost is a mystery to many business owners and a frustration to even more. Buts it's really quite simple, it’s the interest rate inherent in the lease, as well as any purchase options or obligations at the end of the lease, and finally, any misc costs or admin costs identified in your transaction.

So how do you find the best leasing companies in financial services in Canada? We recommend that you seek the help of at trusted, credible and experience Canadian business financing advisor in business financial services. That will allow you to get a competitive quote, as well as achieving the best structure to your deal . He or she has solid intimate knowledge of the equipment lease industry in Canada and therefore has the ability to generate savings based on overall rate, term and structure of your transaction.



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/leasing_companies_business_financial_services.html

How To Get The Best Finance Deal When You Lease Equipment from Commercial Leasing Companies

Isn't it true that everyone knows ' a guy ‘. in business .. Today we'd like to be ' your guy ‘when it comes to best deal / best pricing when you lease equipment via commercial financing leasing companies. Let’s get some major benefits around equipment financing, pricing, and structures.

As a Canadian business owner and financial manager you just might be overlooking one of the best forms on long term ' asset finance ' capital in Canada. And getting a solid deal on rates, terms, structure and prompt approval is why commercial leasing companies are often massively under utilized when it comes to providing your company with an alternate form of financing.

As we said, we promised to be ' your guy ‘... so here it goes. You can immediately go to the head of the class by showing that you are aware of a major choice you need to make when you start the lease vs. buy equipment decision. There are two types of leases, capital and operating. Think of them as basically owning or using, in that respective order.

Have you been read your rights? No, we're not arresting you... just letting you knows that as ' your guy ‘you have all sorts of rights when you entire into an operating lease. Payments are cancelable at end of term and you have no ownership or acquisition rights. However, the good news is that if you choose to, you have the rights to purchase the equipment; upgrade it and re finance, or return or extend the transaction. How is that for flexibility -- and you make those choices not the lessor.

Naturally when you opt to own equipment, as many assets to maintain their value (dont think computing in this case!) you now have a non cancelable commitment but payments are fixed and if you're smart you will match the term of the lease to the expected useful life of the equipment .

Don't forget also that we can divide the area of capital leasing into two subsets - a direct acquisition of an asset, or a sale leaseback on assets you already own. Sale leasebacks were somewhat out of vogue during the 2008 -2009 global recession, but they seem to be coming back, and as an alternative many of our clients have benefited from a simple short term bridge loan (i.e. not a lease) on certain unencumbered assets. At the end of the day it’s purely a financial move on your part - generate working capital from assets you already own.

Again, we're ' your guy ' right. So we have an obligation to remind you of 6 other key benefits of lease equipment strategies in Canada. Working with commercial leasing companies on these strategies will save you thousands of dollars.

The strategies are: the freeing up of working capital in your operating lines. In business you want to match the right debt with the right assets, and lease finance perfectly handles long term asst financing. The other 5 benefits are 100% financing, no additional outside collateral requirements, tax write off of assets that normally might not be expensed, simplified record keeping and approval processes .

Have we done an ' ok ' job as ' your guy ' in equipment leasing? We hope so. Are there potential disadvantages or other solutions to lease equipment or acquire assets? Yes there are. So speak to a trusted, credible, and experienced Canadian business financing advisor on commercial leasing strategies that will work for you, not against you. That’s business 101!

-

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_equipment_leasing_companies_commercial.html

Considering Canadian equipment leasing ? What Leasing Companies Offer The Best Equipment financing

We know you're only mildly interested in the technical aspects of equipment leasing in Canada. The reality is that your best rates, terms and structures in equipment financing are going to come from leasing companies that are your best choices for financing your assets.

Let’s examine some of the key issues you need to look at to obtain the things that are important to you when you are financing assets, and that includes best rates also!

The trick isn't knowing about all the benefits of equipment leasing from a technical perspective, your accountant or lawyer could do that for you - whats important is your ability to figure out which benefits makes the most sense for your firm, as they rarely all pertain to just one transaction .

It always comes down to flexibility in your equipment financing needs. That’s what Canadian leasing companies are about. However, the good and bad news is that there are hundreds of firms that offer equipment financing options. Which one is good for you? The reality is that is a needs versus offering scenario. Simply speaking what you are looking for in asset financing is not offered by all firms - you need to know that. Why? Simply because each firm specializes in a few key areas.

A leasing company is all about several things - they include - their geographical location , the size of transaction they are permitted to do, the type of lease they offer ( there are two in case you didn’t know ) and the credit quality they are prepared to accept to approve your acquisition of business equipment .

So, how do you address the issue of which leasing companies would work best for yourself, either in a one of transaction, or on an ongoing basis? All you have to do is to examine their product and service offering, understand which of the two lease types they offer, and determine if your firm satisfies their credit criteria. Would that take time? We can safely say it would take you many hours of your time, a lot of it easily wasted if you are talking to the wrong firms.

So, whats the solution. We recommend you speak to a Canadian business financing advisor who is trusted, credible an experienced. Their knowledge of the market and the participants is going to fast track you to equipment financing success.

And never lose sight of those benefits and flexibility we spoke of - they include payment flexibility and structures that meet your business cash flow needs. Also, be aware that almost any asset can be financed based on your business needs. You shouldn’t use you lawyer or accountant to find you that lease partner, but they can sure help on documentation and tax issues on the transaction that will prove beneficial to your firm.


In summary, you need to consider what lease benefits makes sense to your company, and who can offer them to you. Maximize your management time and work with a trusted expert and advisor who can assist you in comparing solutions you can commit to and benefit from. That’s what Canadian equipment leasing is all about!
--

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_equipment_financing_companies.html