6 Reasons To Consider Business Equipment Financing . Asset Finance Is A Powerful Solution

Tweet

Financing Assets For Your Business


Information on asset finance . Why business equipment financing from Canadian leasing companies works for your firm . 6 Reasons for your company to lease!

Business equipment financing continues to be by far the most popular method of asset finance for the Canadian company wishing to make fixed asset acquisitions. Virtually every type of asset class can be financed, and the lease finance industry as a whole is not prejudiced when it comes to industry types - every industry utilizes this financing mechanism.

The ability of Canadian companies to realize the benefits of this key aspect of Canadian business financing makes it more popular everyday. Leases are often confused or lumped in together with equipment loans and it’s at this time you need to know some of the basic aspects of accounting, tax and legal when it comes to differentiating between the two.

Operating leases tend to sometimes bring the most amount of confusion to the table, simply because when they are not structured properly they could be treated as a loan and additional debt on your balance sheet.

Let's examine 6 powerful reasons to use business equipment financing in Canada. Reason # 1 is certainly not our most favorite, but it tends to be the clients, and that’s simply the issue surrounding rates and payments.

Clients like both of those to be... low! While many other aspects of equipment leasing in Canada tend to be as important business owners and financial managers always seem to be looking for the most economical way of acquiring assets. There is an old joke among leasing companies that is unfortunately at the expense of you the lessee. It's simply that any firm can guarantee you the lowest rate, if, and it’s a big if... you sign their lease contract. That of course infers that many other scenarios come into play when it comes to the proverbial monthly payment.

The reality also is that when you focus in on rates only you miss many of the value add dimensions of business lease. some of which are equally as important as we have said. Bottom line, don't always thing asset finance via leasing is a commodity!

Reason # 2 to consider is the whole issue of assets, or fear of assets. Naturally you want to also separate the issue of the price of the asset from the financing - car dealers are masters of that one when it comes to intertwining them as we as consumers know. Leasing allows you to focus on the asset itself and the productivity that comes from it. Leasing provides a great return on investment when you consider the asset in terms of return on investment and cash outflows.

Reason # 3- Managements pay cheque ! What do we mean by that? Simply that many medium size and larger corporations compensate management on finance lingo such as EBITDA. Depending on how your management is measured when it comes to economic performance and ROI the right type of lease strategy can enhance that calculation. Another quick example, operating lease transactions reduce capital outlays.

Reason # 4- It’s all about the money ... or the cash flow conservation. Quite frankly many firms have to lease, they don’t have a choice, because when it comes to working capital you are conserving it via a business equipment financing strategy. Down payments are also eliminated or diminished. 100% financing is very often achievable via lease asset finance.


Reason # 5- Your balance sheet. Properly structured operating leases, aka the ' lease to use ' option can enhance your balance sheet. Even if bankers and other lenders add the assets back in them quite often will not add in the entire original balance. Technology acquisitions in Canada in computing, telecom, etc are perfect for operating leases, as they eliminate technological obsolescence.

Do we have a final reason today? We sure do, and it’s simply the issue of convenience. An asset finance company can approve and structure a proper lease for your firm in a matter of days. Small transactions in the industry are actually often approved and financed within 24-48 hrs! You can easily these days perform a lease vs. buy calculation and also bundle in numerous other services into your transaction.

Consider speaking to a trusted, credible and experienced Canadian business financing advisor to ensure you're focused on our 6 great reasons to consider business equipment financing.








7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.



Stan Prokop

5 Tips For Selecting The Right Leasing Company For Your Equipment Finance Needs

Tweet


Equipment Financing Lease Solutions In Canada - The Not So Radical Way To Finance Asset Needs





Information on equipment finance solutions in Canada . Working with the right leasing company solutions is the best method to address capital equipment needs

Partnering is more often than not the right thing. Bad partnerships don't work and can adversely of course affect your business. That’s why it is so important to select the right firm to originate your equipment finance needs.

The right leasing company on a long term basis will ensure that you are investing properly in the assets you need to run your business for your customer base.

Let’s look at 5 key tips we can provide you to ensure you are putting the right financial strategy in place around asset acquisition. Successfully working and negotiating through these tips with the right leasing partner guarantees you business equipment lease financing success.

Its all about getting approved of course , and getting an approval quite frankly is the biggest decision your lessor has to make around the transaction - that approval can be significantly influenced by yourself - it is important to present both the positives around your firms financials, as well as the challenge you may have, or may be facing,

Chance of getting approved is significantly reduced if negative information about your firm or its financials arises after your submission. Factors that affect your approval are your time in business, your ability to have sourced financing in the past - i.e. other lessors, banks, etc. Other key areas of focus are trade references and the ability of the owners to demonstrate they run their personal lives in a fiscally responsible manner also. This is usually accomplished by the lessor drawing a credit bureau report. On transactions over 50,000.00$, as a general rule financial statements are required, and areas of focus will be your overall balance sheet health and the ability to generate positive cash flow to repay the lease .

Lets move on to rate, we are never under surprised with how much our clients focus solely on rate and their ability to drive down the lessors yield . In Canada leasing equipment is very competitive, and all we can say is that if you have presented your financials properly the market will ensure you have a competitive rate. Naturally you can spend all the time in the world securing a ' better deal ', but consider management time and total savings. A quick example: If you leased a 75k piece of production equipment and were quoted a rate of 10.25% and you spent a lot of time in sourcing another quote, re submitting your financials to a new firm, etc , and got a rate of 10.00% you would be saving twenty dollars a month. We'll let you decide the value of your time.

We have covered off credit approval and rates, Documentation are important also. You should be prepared to provide a proper invoice or quote to the lessor, as well as a certificate of insurance. The equipment lease and your acceptance of delivery are key to the lease commencement. Smaller transaction in Canada has been greatly simplified, so you should typically be provided with a one or two page lease agreement. Larger transactions are of course more complex.

The type of lease you choose and your analysis of the lease versus buy decision is also a key area of focus. Look at your cash flow Vis Vis payments you will make on a lease versus a loan basis. As a general rule leasing tends to be more expensive, but is easier to obtain and is less of a drain on your cash flow.

Two is the magic number. There are two types of leases you should inquire about, a full payout capital lease, as well as an operating lease where use of the asset is more important than owning the asset.

Your overall lease financing decision should be focused on a very simple question - namely:
- is the asset acquisition important to your business profitability and productivity. If new assets and proper financing position your business for competitiveness you have made the right financing decision.

We have covered off 5 key areas in the selection of a leasing company in the equipment finance area. If you find the information and the challenge overwhelming speak to a trusted, credible and experienced business financing advisor who will help you achieve lease financing that meets your goals.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop

Leasing Company - Your Best Choice For Business Equipment Finance: Business Leasing Makes Sense!

Tweet

Information on business equipment finance and business leasing in Canada. How the right choice of a leasing company can provide you with a great number of financial benefits and flexibility

Common sense financing, fast approvals and flexibility that makes perfect sense for your firm - that's why when you want to lease business equipment a leasing company is your best choice for business leasing financing.

If we were to ask you to name ten quick benefits of any type of business financing in Canada we quite frankly cant imagine  you would name any other type of finance other then leasing. Just think about it.

Ten, yes ten solid reasons to consider a leasing company for your right choice of asset finance.

Let's recap them:





technological obsolescence protection, accounting benefits, cash flow management, potential tax savings, the right to own or not own the asset at the end of the lease, convenience, ability to match the asset financing to its useful economic life, quick credit approval ( boy do we like that one!) and finally often a lower cost and cash outflow.

Whew! That was a mouthful of reasons. Let's circle back on one of those benefits, the issue of a prompt credit approval.

Canadian business financing got really challenging in the last couple years. Traditional financial institutions that funded equipment such as banks and insurance companies quite frankly simply stopped funding your business leasing needs. The leasing company you probably worked with also borrows, just in case you didn't realize it.

We keep coming back to flexibility when clients ask us about what the best choice options are in business leasing. Always remember that when you choose to finance an asset you can enter into a lease to own scenario, aka a 'capital lease ', or, continuing on our theme of flexibility, you can opt for an operating lease - which simply states your desire to use an asset, not own it. Equipment that depreciates quickly, needs to be replaced due to technology, etc, is the perfect choice for an operating lease option.

Asset financing from your business comes out of very different needs - it might be a photocopier for the office, (or computers), equipment for your shop floor, and, even a commercial jet for your corporate meetings!

(Well, we can dream, cant we?!). Our point is simply that any type of asset can be leased, and often bundled in with other ancillary services such as installation, maintenance, warranty, etc. Again, there's our flexibility again.

Do you have a personal business relationship with the hundreds of lease companies in Canada? If you do we're jealous, and you obviously have a lot of time on your hands. If you don't, speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can ensure those many benefits of business leasing can be matched with the leasing company that suits your 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 - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.


7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Direct Line = 416 319 5769


Office = 905 829 2653

Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.




Stan Prokop


Article Source: http://EzineArticles.com/5623082

Finance Lease Companies In Canada : Experience The Benefits Of Leasing Company Offerings

Let Business Equipment Leases Be Your Success Story In Asset Acquisition Needs

OVERVIEW – Information on finance lease companies in Canada . How does the leasing company offering give your firm the asset acquisition edge

Leasing company solutions can be the true ' success story ' of any business that requires assets and technology. But does the business owner/financial manager really understand how to maximize benefits achieved from this method of asset financing? Let's dig in.

Over the years the lease finance industry has gravitated to financing every type of asset - they call that from ' micro ticket ' to ' large ticket ' which can be an office photo copy machine for 2k or a corporate aircraft for 20M$.

The borrower, aka ' the lessee ' must know the differences of applying for and getting approved for different asset categories. Owners/managers can also waste a lot of shoe tread in dealing with the wrong firm when it comes to your company's credit quality, geographical location, etc.

When it comes to the small ticket market (people disagree on the exact maximum deal size within this market segment) a large part of the financial approval is often based on the personal credit history and guarantees of owners. If your company doesn't have a truly very strong profile (strong = growing sales, growing profits, growing cash flow, acceptable debt levels) it can almost be 'guaranteed' that personal guarantees will be requested.

The one thing we want to mention about guarantees is that owners/managers who can present their company financials properly can often have some 'wiggle room ' in the personal guarantee conundrum. That might mean a ' partial guarantee ' or a ' declining balance' guarantee. In some cases it might make sense to negotiate the type of ' covenants ' that are often related to bank loans - i.e. debt to equity / working capital ratios.

Old school

credit granting is not quite dead yet also, so traditional criteria such as years in business, usefulness of the asset being financing relative to revenue / profit generation, and commercial credit references also can play a large part in the overall approval process. If there is one good thing happening in financing approvals is that timelines these days are close to instantaneous in the small / mid market - typically same day or 48 hrs max.

We've always maintained that clients focus far too much on rate, if only for the reason that that finance lease companies are in a highly competitive environment - ultimately your firm’s credit quality will always drive the lowest rate in a competitive environment. Owners/managers would be cautioned to spend more time on areas such as terms of the lease, renewals, buyout options, and down payments or security deposits that might on occasion be required.

While we're talking in the main about ' lease financing ' remember also that term loans for equipment might ultimately make as much sense for your financing needs - Also assets already owned can be refinancing under creative sale leaseback or bridge loan scenarios.

Larger transactions for any leasing company will receive a lot more credit diligence when it comes to financial statement analysis, cash flow reviews, and consideration for nuances in the particular industry your firm might be in. Unfortunately some industries temporarily find themselves ' out of favor '.

We can't over emphasize the need for time spent on documents - that might be a ' Master lease ' scenario, or the rights and obligations you have under and operating lease. The ability to ' add on' to any current lease transaction is typically always available.

Amortization terms for finance lease companies tend to range from 2-7 years, in truth the majority of transactions are on a 3-5 year term which makes sense for a large category of different asset types.

What then are the most touted, and real... benefits of equipment finance – they include :

Ability to access other credit facilities other than current borrowings

Rates

Ability to finance 100% of any asset acquisition


If you're looking to maximize on the benefits of a leasing company solution seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your asset finance needs.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT LEASE FINANCING EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Why The Equipment Lease Bravely Steps Up : Leasing Company Solutions Help Acquire Assets

Getting It Wrong Is Not An Option When It Comes To Asset Lease Finance

OVERVIEW – Information on what key concepts business owners and financial managers must address when constructing the right equipment lease with their chosen leasing company solution provider

Equipment lease solutions aid in acquiring assets. Simple as that. It's a solution that's used by a majority of businesses in Canada and the U.S. alike. But can you ' get it wrong ' when it comes to a leasing company choice. In some cases any mistake in financing an asset properly costs your firm time and money. Let's dig in.

Whether you're a public company, a government entity, or even a start up it's still important to give serious attention to how you're leasing and asset, who you are dealing with, and the rights and obligations you have in leasing equipt. in Canada.

Leasing is all about cash flow conservation, so some solid cash flow planning around projected monthly payments relative to the useful life of the asset.

Naturally no form of Canadian business financing is ' all inclusive ' and works all the time - so yes, alternative options do exist. They include loans or rentals, although rentals are in effect a form of the ' operating lease ' solution.

Picking the right term is critical as it relates to our cash flow mention, as well as being able to accurately determine the life of the asset. While longer term/amortizations are available typical lease terms are 2-5 years in Canada. Certain heavy equipment/aircraft/production equipment etc lends itself to much longer terms potentially.

It seems our clients always only want to talk about ' rate' ' interest rate' considerations on any transaction. That's all well and fine but the actual terms of the lease as well as type and structure are considered much more important by experienced lessors. At the end of the day your overall business credit quality (or lack thereof) will take care of the interest rate question, if only for the reason that the industry itself is very competitive these days!

It's that competitiveness that will allow you potentially negotiate critical customer concerns such as down payments that might be required, the dreaded ' personal guarantee', or end of term options such as upgrading, returning, extending the lease .

Many of our clients we initially talk to don't fully understand that ' capital lease' (i.e. lease to own) solutions are known as ' hell or high water ' contract, requiring you to make all the payments under the lease - i.e. no early terminations, etc.

Who in fact offers lease finance solutions in Canada. You'd be surprised at the number of players; they include some of our Canadian chartered banks, independent commercial lease firms, captive organizations within certain large manufacturers, and niche players. In some cases your lessor might be 100% Canadian, in other time it might well be a subsidiary or division of a U.S. organization. (Not that there's anything wrong with that!)

So is there any one way to guarantee you are aware of and selected the right lease structure and lessor? One possible solution is to seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure ' getting it wrong ' is not the option.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT LEASE FINANCING EXPERTISE






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Lease Financing In Canada : Your Leasing Company Stacks Up As A Great Business Asset Finance Solution

You Don’t Need A Drone To Deliver On Asset Financing Needs


OVERVIEW – Information on lease financing options in Canada . When asset finance is needed a leasing company delivers on benefits and solutions your company needs for growth and profits








Asset finance for equipment requires that business owners and financial managers look down the road at both the use of the asset or assets in question and the cash flow pressures that the need for new assets demands.
It seems only common sense for owners and managers to take a strong look at why 80% of Canadian business utilizes lease financing at one time or another, or ... in some cases all the time! But hand in hand with that task requires looking at a number of issues, any of which could dramatically impact the true benefits of equipment finance.

Those issues? They include cash flow, impact on current credit lines and other lending agreements you have in place, depreciation, taxes, and the timing and ultimate disposition of the asset .

True power of leasing emerges when owners/managers acquire assets to produce revenues and profits. On the other hand these days such key assets such as technology are a must to stay competitive. The good news? Technology is made for financing these days, for everything up to and including software.

The term or ' amortization' of the lease is an important consideration. Typical lease terms tend to be in the 2-5 year range - anything less than 2 years is quite frankly considered a ' rental '. By the way, while we are focusing on leasing assets can of course be acquired via term loans also. In some cases short term bridge loans of a year or so can aid a company when they are refinancing assets.

Some accountants and financial analysts argue on occasion that leasing is more expensive than term loans. While that might be the case based on factors such as rate, term, down payment etc the reality is that leasing assets becomes a much more simple process - and certainly credit approvals are typically 1-2 business days - often same day for smaller transactions.

Operating leases are less commonly used but provide tremendous benefits when you are considering financing tech assets. Changes, i.e. ' upgrades' can very easily be made mid term, and options at the end of these transactions include return, extend, upgrade, purchase . That is flexibility.

Many assets that your business acquires include miscellaneous costs such as delivery, taxes, warranty, maintenance, install, etc. Those can almost always be included in your transaction. Remember also that if cash can not be expensed in your business (with leasing it does) it negatively impacts your owner equity.

In Canada the true popularity of leasing actual creates a problem. Who to deal with. Lessors are U.S. based, Canadian, divisions of banks, small tick oriented, or in some cases requires minimum deal size in the millions!

Additional lessors tend to be asset or industry focused, and even geographically challenged vis a vis where they can do business. A solution to that? Seek out and speak to a trusted, credible and experienced Canadian business financing manager who can assist you with your asset finance needs.


Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN LEASE FINANCING EXPERTISE






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '
























Stan Prokop

Equipment Finance Canada. Finance Success Via A Leasing Company . Up Up And Away With Asset Finance Smarts

There’s No Real Dark Side When It Comes To Asset Finance !


OVERVIEW – Information on equipment finance solutions in Canada . What does the business manager need to know and look out for when selecting the right leasing company for asset finance needs

Equipment finance in Canada . It's probably just us but there is no real ' dark side ' when it comes to using this method of financing assets. So what do you need to know about the ' right ' leasing company, along with other key aspects of lease finance? Let's dig in.

There are of course a couple of methods to utilize when financing business assets. They might include a bank term loan, a bridge loan of a temporary nature, and even a spin on currently owned assets, i.e. the ‘sale leaseback '.

Every method works, but there are a number of reasons that top experts tell us that 80% of all North American firms (hey isn’t that Canada also?!) utilize lease finance.

Can the business owner and financial manager fast track equipment financing success? We think so, and it comes down to understanding who the players are, what the offering is, and what the upside and downside benefits and risks are.

Risks? While we can say that the downside risk of lease financing is small, it becomes only apparent due to a lack of misinformation by your firm, the lessee. If you enter into the wrong type of lease (there are only two choices - capital and operating) you run the risk of losing money on the final residual value of the asset. Also, if you weren't ' tending your store ‘properly and didn’t attend to the maintenance and insurance issues that come with any lease obligation that could also pose a problem.

Other risks? Well they might include improper tax and accounting treatment on your financials, or worse, losing out on the benefits that do in fact come with accounting and taxation issues as they relate to lease finance. One final point - non payment results in asset repossession - surely that one was obvious!

So, while some of those above referenced issues could be deemed ' the dark side ' the reality is that it should be obvious to Canadian business that a leasing company can provide a strong springboard to business success - i.e. it’s our ‘up up and away '!

You need to know how leasing works and that essentially comes down to understanding common lease structures and ensuring they make economical sense to you , in terms of both cash flow and the life and usefulness of the asset . To us it’s a bit unfortunate that owners/managers continually focus on interest rates only when they are searching for lease solutions. While that is an important part of the equation they forget that the documentation, their obligations, who they are dealing with, and end of term flexibility is key to asset finance success.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in meeting equipment finance needs via expertise that makes this method of financing a winning solution.


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 :

7 PARK AVENUE FINANCIAL = EQUIPMENT FINANCE
















Stan Prokop