Equipment Leasing and Lease Finance Loans in Canada

 

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EQUIPMENT LEASING SOLUTIONS IN CANADA

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        Financing & Cash flow are the biggest issues facing business today 

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Leasing Equipment and Lease Finance in Canada: The Key to Unlocking Growth and Profitability

  

 

INTRODUCTION

 

In the world of equipment lease finance and asset loan solutions in Canada, businesses often face a critical question: Should they pay with cash or opt for lease finance?

 

Leasing companies offer a compelling option to finance asset acquisitions, and thousands of firms of all sizes in Canada continue to embrace this method to fuel their growth, boost profits, and stay competitive. In this article, we will explore the reasons behind the popularity of equipment leasing, the different types of leases available, and the advantages that lease finance offers Canadian businesses.

 

 

  

THE CHALLENGES OF ACQUIRING EQUIPMENT AND TECHNOLOGY FOR YOUR  BUSINESS   

 

Acquiring new equipment comes with a significant cost, which can strain a company's cash flow and working capital needs. Regardless of the firm's size, the capital budgets required for purchasing equipment can drain the resources that businesses would instead use to fund daily operations and growth. This challenge has led many companies to consider alternative financing options, and equipment leasing is a viable solution.

 

BENEFITS OF LEASING EQUIPMENT IN CANADA

1. Improved Cash Flow Conservation and Working Capital Management: When a business opts for equipment leasing, the leasing company pays the equipment supplier directly. This eliminates the need for a significant upfront cash outlay, preserving the company's cash flow and working capital for other critical expenses and investments.

2. Simplified Purchasing Process: Leasing streamlines the equipment acquisition process by allowing the leasing company to handle payments directly to the supplier. This reduces administrative burdens for the business and ensures a smooth and efficient transaction.

3. Effortless Budgeting: Lease payments are fixed and predictable, making it easier for companies to budget their finances accurately. This stability helps businesses plan their expenses more effectively, avoiding unforeseen financial challenges.

4. Access to Larger and More Expensive Assets: Lease financing enables businesses to consider acquiring higher-cost assets beyond their immediate purchasing capabilities. This includes advanced technology and software that can significantly enhance the company's operations and competitiveness.

5. Flexibility for Business Growth: Leasing allows companies to upgrade to newer equipment or technology as needed, ensuring they stay up-to-date with industry advancements. This adaptability helps businesses maintain their competitive edge and respond to changing market demands.

6. Preservation of Credit Lines: Leasing finance allows businesses to conserve their credit lines. This is especially beneficial for small and medium-sized enterprises (SMEs) that may need credit facilities for other critical business needs.

7. Tax Benefits: Lease payments may be treated as operating expenses, potentially providing businesses with tax advantages. Consulting with a tax professional can help companies fully understand the tax implications of equipment leasing.

8. Reduced Risk of Equipment Obsolescence: In rapidly evolving industries, technology and equipment can quickly become outdated. Leasing allows businesses to avoid owning obsolete equipment, as they can upgrade or return the leased assets at the end of the term.

9. Enhanced Asset Management: Lease financing often includes options for bundling services such as insurance, maintenance, and training into the lease agreement. This comprehensive package simplifies asset management and maintenance responsibilities.

10. Speed and Convenience: The leasing process is generally faster and more straightforward than securing traditional financing options. Quick credit approvals and minimal documentation requirements enable businesses to acquire the necessary equipment promptly.

 

 

 

  

UNDERSTANDING FINANCE LEASES/CAPITAL LEASES AND OPERATING LEASES   

 

 

In Canada, there are two primary types of equipment leases: operating lease and finance leases (also known as capital leases).

 

Operating leases, often called fair market value leases, offer lessees significant flexibility at the end of the lease term, allowing them to choose whether to buy, upgrade, or extend the lease. On the other hand, finance leases are an attractive option for those who wish to own the asset at the end of the term. The choice between the two types of leases in equipment lease financing in Canada depends on the business owner's specific needs and preferences.

 

UNLOCKING BUSINESS CAPITAL FOR ASSET ACQUISITIONS

 

Different industries have varying levels of capital intensity, and businesses with high capital needs may constantly struggle to raise additional equity. Equipment leases and lease finance provide a solution by enabling companies to conserve cash and equity. In a competitive environment, staying up to date with equipment, software, and other assets becomes crucial, and leasing offers an effective way to achieve this without exhausting financial resources.

 

  

LEASE FINANCING IS VERSATILE - HERE'S WHY!  

 

Lease financing extends beyond traditional equipment purchases. Including the absence of a small or no down payment, this business financing solution also covers miscellaneous costs, such as insurance, maintenance, services, and training, which can be easily bundled into the lease transaction. This flexibility makes lease financing appealing for businesses seeking a comprehensive solution to their asset acquisition challenges.

 

  

LEASE FINANCE VERSUS OTHER OPTIONS   

 

Canadian business owners and financial managers have several options when acquiring equipment. They can pay with cash, draw down on the company's line of credit, explore equipment loan solutions from Canadian chartered banks, or lease the equipment. While traditional financing options may have their merits, lease financing for the business owner often emerges as the most favourable choice due to its speed, simplicity, and competitive interest rates on monthly payments structured to cash flow.

 

  

  

KEY ADVANTAGES OF LEASE FINANCE    

 

Interest rates in the leasing industry in Canada are currently at all-time lows, making lease capital accessible to businesses with varying credit qualities for lease equipment needs.

Lease rates may vary based on credit quality, transaction size, and asset quality. Additionally, the ease of application and simple documentation in the leasing industry ensures quick funding, with some transactions even being processed without financial statements. This speed and efficiency in lease finance approval provide a significant advantage over traditional financing methods.

Leased equipment that is now owned by the company can also be refinanced.

 

  

  

 7 PARK AVENUE FINANCIAL LEASE SOLUTIONS    

 

For every small business in Canada facing asset acquisition challenges, equipment financing can play a crucial role in unlocking growth and success. Companies can benefit from partnering with a reliable, experienced lease financing advisor like 7 Park Avenue Financial. We can offer customized financing options that align with the unique needs of each business, providing a valuable proposition that fosters growth and profitability.

 

 

CONCLUSION

 

In conclusion, leasing equipment and utilizing lease finance in Canada present a compelling approach to address the challenges of equipment acquisition and capital management.

 

By opting for lease financing, businesses can conserve cash, access the latest technology, and stay competitive in their respective industries. The versatility, simplicity, and efficiency of equipment leasing agreements make it an attractive choice for businesses of all sizes seeking sustainable growth and long-term success.

 

If your business needs equipment financing, consider the benefits of lease finance and explore the expertise of  7 Park Avenue Financial,  a trusted, reputable lease financing advisor and business funding provider,  helping your company make the most informed decision on business financing needs.

 

    

FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION    

 

1. Q: What is equipment leasing, and how does it differ from traditional equipment purchasing?  Equipment leasing from lease providers involves renting/using equipment for a specific period, while traditional purchasing entails buying the equipment outright. Leasing offers more flexibility and cost-saving benefits.

2. Q: Why do Canadian businesses prefer equipment leasing over other financing options? Leasing conserves cash flow, enhances working capital management when companies consider an equipment purchase and allow for easier budgeting. It also provides access to the latest technology and helps businesses stay competitive.

3. Q: What are the two kinds of equipment leases available in Canada? A: The two types are operating and finance (capital leases). Operating leases offer flexibility at the end of the term, while finance leases provide an option to own the asset after the final lease payment is made.

4. Q: How does lease financing speed up the acquisition process compared to traditional bank loans?  Lease financing via a lease broker offers quicker approval times and simplified documentation, and, in some cases, it does not require financial statements, making it a faster and more efficient option.

5. Q: How can a lease financing advisor assist my business in making equipment acquisition decisions?  A lease financing advisor can offer tailored financing options for purchasing the equipment a company requires based on the business's needs, credit quality, and asset requirements, ensuring the most suitable solution for your growth and profitability.

 

Click here for the business finance track record of 7 Park Avenue Financial

4 Most Overlooked Benefits of leasing of equipment as a Business Finance Strategy

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Make lease financing work for your firm !

Information on the benefits of equipment financing and lease options for acquiring assets for your business. Any asset, including software, can be financed

Most Canadian owners and business managers wouldn’t think of always paying cash for equipment and other capital acquisition needs. They also can’t imagine, in the current economic climate, paying cash for everything. Whether you are in an industry that is highly capital intensive, or if you simply on occasion need to upgrade or purchase new equipment the leasing of equipment should be considered as an effective overall financing strategy for your company

Naturally no form of business financing in Canada could be considered perfect and met absolutely every one of your needs, but let’s examine what are considered to be normally the top four benefits of equipment leasing. Naturally you want to ensure you are dealing with the right type of lease firm and you have also carefully examined your rights and obligations under the business lease.

Anyway, benefit 1. Flexibility. The reality is that working with the right lease partner firm should provide you with the flexibility you want in your transaction. Flexibility is of course a broad term, but we are basically referring to the type of lease that works best - for your firm! Not everyone else’s. That flexibility comes in the form of low or no down payment, monthly payment structuring options ( here are possibilities abound!) , balance sheet optics around the amount of debt you can carry without getting your bank offside . Flexibility also comes in the form of the ability to return the equipment or extend the lease for a pre agreed period of time.

Benefit # 2 might well be called Cost efficient. The last thing you want to be doing is getting your firm locked into a long term lease on a depreciating asset - and the reason you lease financed the equipment in the first place is that you as a Canadian business owner and financial manager recognize that the equipment ultimately will probably have no value after its economic life is completed.

If the business world was slow moving and predicable you would never have to worry about competition, changing technology, etc- however things don’t work that way and as your needs change over time you can using equipment financing as the tool to address those needs .

Benefit 3- Tax benefits! We hate getting into long accounting and financial statement dissertations when we are lease financing info with clients, but the reality is that leasing of equipment as a business finance strategy has accounting and tax benefits re write off strategies around your payments .

Our final focused major benefit is simply Cash flow conservation. It's tough enough in today’s business environment to achieve positive working capital and cash flow for daily and long term needs. Utilizing lease financing as a tool to minimize cash outlay and reduced down payment requirements makes total sense. Choosing an off balance sheet operating lease strategy will also ensure your ratios and debt covenants stay intact.

In summary, as we stated, no overall business financing strategy works perfectly for all companies in all industries. But leasing of equipment has significant benefits that clearly outweigh other options such as purchasing for cash, entering into long term loans, etc.

Speak to a trusted, credible and experienced lease financing advisor to ensure you can take advantages of the 4 key benefits we outlined.







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

Top 4 Most Overlooked Benefits of Leasing of Equipment As a Business Finance Strategy

Information on four key benefits with respect to leasing of equipment as part of your overall business finance strategy in Canada. How lease financing benefits can help you reduce and overcome capital acquisition risk and challenges. Make lease financing work for your firm!

Most Canadian owners and business managers wouldn't think of always paying cash for equipment and other capital acquisition needs. They also can't imagine, in the current economic climate, paying cash for everything. Whether you are in an industry that is highly capital intensive, or if you simply on occasion need to upgrade or purchase new equipment the leasing of equipment should be considered as an effective overall financing strategy for your company

Naturally no form of business financing in Canada could be considered perfect and met absolutely every one of your needs, but let's examine what are considered to be normally the top four benefits of equipment leasing. Naturally you want to ensure you are dealing with the right type of lease firm and you have also carefully examined your rights and obligations under the business lease.

Anyway, benefit #1- Flexibility. The reality is that working with the right lease partner firm should provide you with the flexibility you want in your transaction. Flexibility is of course a broad term, but we are basically referring to the type of lease that works best - for your firm! Not everyone else's. That flexibility comes in the form of low or no down payment, monthly payment structuring options ( here are possibilities abound!), balance sheet optics around the amount of debt you can carry without getting your bank offside. Flexibility also comes in the form of the ability to return the equipment or extend the lease for a pre agreed period of time.

Benefit # 2 might well be called Cost efficient. The last thing you want to be doing is getting your firm locked into a long term lease on a depreciating asset - and the reason you lease financed the equipment in the first place is that you as a Canadian business owner and financial manager recognize that the equipment ultimately will probably have no value after its economic life is completed.

If the business world was slow moving and predicable you would never have to worry about competition, changing technology, etc- however things don't work that way and as your needs change over time you can using equipment financing as the tool to address those needs.

Benefit 3- Tax benefits! We hate getting into long accounting and financial statement dissertations when we are lease financing info with clients, but the reality is that leasing of equipment as a business finance strategy has accounting and tax benefits re write off strategies around your payments.

Our final focused major benefit is simply Cash flow

conservation. It's tough enough in today's business environment to achieve positive working capital and cash flow for daily and long term needs. Utilizing lease financing as a tool to minimize cash outlay and reduced down payment requirements makes total sense. Choosing an off balance sheet operating lease strategy will also ensure your ratios and debt covenants stay intact.

In summary, as we stated, no overall business financing strategy works perfectly for all companies in all industries. But leasing of equipment has significant benefits that clearly outweigh other options such as purchasing for cash, entering into long term loans, etc.

Speak to a trusted, credible and experienced lease financing advisor to ensure you can take advantages of the 4 key benefits we outlined.

Stan Prokop is founder of 7 Park Avenue Financial -

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 100 Million $ of financing for Canadian corporations





Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/5189939

Business Lease Finance Options In Canada : Know Your Asset Needs & Understand Leasing Equipment Finance Strategies

What Mom Never Told You About The ‘ Credit Box ‘ & Acquiring The Business Assets You Need

OVERVIEW – Information on leasing equipment in Canada. Knowing your business lease finance options allows you to acquire the assets you need to run, and yes grow your business

Business lease finance options aren't necessarily always a straightforward process when it comes to acquiring assets. Equipment leasing might also find your company ' outside the credit box ' - in otherwards potentially not qualifying for the asset financing you require.

The real world reality? Your lease options and who you deal with in this area can make or break good or bad financing decisions. Mom never told us that one! Let's dig in.

We're arming you with some lease basics, and we'll let you in on some inside secrets to the trade. We have often told our clients we're not impressed by the ways in which some industry participants create a smoke and mirrors scenario around some of your most important lease financing acquisitions.

You're wrong if you think that it's all about interest rates also. Unfortunately most of the time new clients we meet are only focused on rate. In reality pure math analysis will more often than not show that leasing is a bit more expensive option. The actual reasons you chose to lease probably should be more focused around the two types of leases available, and which one is right for your firm. And as mentioned, leasing strategies properly structured will also put you inside that ' credit box ' - in other wards: You're approved!

Alternate decisions to lease are driven by, guess what...? Credit approval (leasing approval is easier to obtain) and the managing of your payments in a predictable fashion related to your cash flow. An if you are in a technology business you're most concerned with the fact that you have 3 or 5 years to go on payments and your asset is depreciating, or become obsolete a lot faster.

Don't forget also that many small, what we can call ' service features ' come with the lease facility. They include the ability to include taxes on your payments, bundle in warranty and maintenance, etc. Not everyone knows also that used equipment can be lease financed - provided the asset is purchased from a legitimate vendor either here in Canada or in the U.S.

Is it possible to figure out the exact rate you are being charged in a lease? As we said, it shouldn't always be about rate, but the answer is ' yes'... you can figure out what the interest rate is.

How do we do that then? Relatively simple, if you have the tool. The parts of any lease calculation are term of lease, amount financed, the final obligation or future value, the interest rate, and the payment. If you know any four of those you can use a financial calculator to calculate the 'real' rate the lessor is using.

Example: Your business is leasing 50,000$ of assets/ asset for 3 years and you own the equipment at month 36 you are told, and the monthly payment is 1600.00$. By entering those 4 into a financial calculator (a real financial calculator) you can see that the rate is 10%.

Let's stay with our client's fixation on rate. Is that 10% high, low, acceptable, competitive? More often than not it's a competitive number because the entire industry has to stay competitive to be in business.

A better question you never asked is what rate your lease company borrows at in order to allow leasing equipment for business such as yours. If they can borrow at 5% they are making 5% on you... if their cost to borrow is higher... and in most cases it's higher than you think, they are making less.

Let's share another of those secret strategies not commonly known. Your firm has a lease... it's for 50,000, for three years, and the monthly payment is 1600.00 and you. Your competitor has the same lease, but that monthly payment is 1480$. How could that be, ask clients?

The answer is that one lease is probably an operating lease, structured as a rental, and the lower payment simply means the lessor is going to get the equipment back at the end of the lease - sell it, and recover the shortfall (hopefully) on the lower payment you have been making.

So... is it all smoke and mirrors when it comes to lease finance options? It doesn't have to be.80% of Canadian business use various lease strategies to acquire assets. Shouldn't your firm be considering that?

Do your homework, compare apples to apples, and speak to a trusted, credible and experienced Canadian business financing advisor in the lease financing area.



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 100 Million $ of financing for Canadian corporations . Info /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

Here’s Your Leasing Equipment Checklist . Use This Info For Great Lease Finance Rates, Terms, And Approvals In Canada

When Is The Right Time To Utilize Leasing ?


Information on lease finance in Canada. A checklist for leasing equipment for the business owner contemplating an asset transaction.




Leasing equipment in Canada. When it comes to lease finance of assets how though does the Canadian business owner and financial manager know when this method of financing assets is both the right time ... and let's not forget ' how to '!

Interest rates are always a key factor in borrowing of any funds for business. If your alternatives for borrowing for business are limited then lease finance becomes a desirable form of finance - it has now become a working alternative!

Don't forget though that interest rates in leasing equipment in Canada are dictated by overall credit quality - so although you may be approved for leasing not withstanding your firm’s credit, you may also have a higher rate within the lease. But its all about access to capital, not cost of capital for the majority of business borrowers.

Don't forget to speak to your accountant about the tax benefits of leasing assets in Canada. Also, in many cases you might find that your bank might want additional collateral, commitment fees, or compensating balances, or outside collateral. Many of these are requests are not within general lease finance offers in Canada.


Is there a checklist the business owner of finance manager can utilize to finance assets via leasing? There definitely is, and here are some solid pointers:

- Always consider the obsolescence factor when it comes to acquiring an asset - and definitely consider lease finance if your asset has a somewhat defined useful life

- If you need the asset for a project or a shorter period of time asset finance is a solid strategy. We would point out though that, in general, the shorter term you can acquire in Canada tends to be 24 months. Typical amortizations by the way tend to be 3-5 years , but larger assets or assets that hold their value can in fact often be leased for terms up to 7 years , or longer .

- In business it's all about capital preservation, so always consider your access to operating funds when acquiring an asset - that’s when leasing equipment becomes the optimal solution

- Don't forget to review the type of lease you want to enter into - In Canada we keep it pretty simple, it boils down to lease to own, or lease to use . The terms for those two leases are capital and operating, respectively.

Who can you lease from in Canada? In Canada it boils down to private lenders, non bank independent finance firms, captive firms, and bank leasing subsidiaries.

So how do you go about making that choice? A good option is to use the service of a Canadian business financing advisor who can add solid value to the choice of term and overall rate, term, and structure.

There are many factors that are involved in the choice of financing an asset. Use this checklist to better understand your options.

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 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_equipment_lease_finance_canada.html







Stan Prokop

Overlooked Leasing Equipment As A Source Of Business Finance ? Lease Financing Works. Here's Why!

Don’t Forget One Of Canada’s most popular business finance mechanisms



Information on leasing equipment in Canada. Canadian firms can utilize lease financing as a valuable source of business finance and funding.


Overlooked? You tell us, but we're never more amazed at why leasing equipment is such an often overlooked source of business financing in Canada. Here's why we think the ' unconverted' need to reassess this popular method of financing their businesses when it comes to asset acquisition.

Hopefully you've got your short term working capital and cash flow needs sorted out. They might include bank lines, receivable finance, working capital facilities, asset based lines of credit, etc.

But what about long term capital when it comes to financing your needed asset acquisitions? It's an entirely different form of financing and you just need to know some solid basics when it comes to eliminating any surprises. Let's cover some basics.

In general Canadian business owners and financial managers need to only know there are basically two types of leases - operating and capital. But the difference between the two of them is huge! When you engage an operating lease scenario you essentially have no ownership or acquisition rights - think if it as leasing your landline phone.

A capital lease on the other hand is a non-cacheable commitment to make a series of payments over time for the purchase of the asset; it’s as simple as that. The usual (but not always' end result of a capital lease is the transfer of ownership of the asset from the lessor to your company.

Strictly speaking, leases are a form of long term debt, but depending on the type of lease you structure, and how it's structured it doesnt necessarily have to show on your balance sheet.

Why then do we think that many businesses in Canada overlook some solid advantages in leasing equipment? And what are those advantages?

First of all leasing as a source of business finance frees up working capital that you quite frankly could use in a more productive matter. A quick example is that if your lease rate is, say 7% and you can generate returns on profit in equity of 10%, as an example... well... enough said!.

Other methods of business finance as a source of financing often require hefty down payments - leasing more often than not is 100% financing or pretty close it depending on your firms overall credit quality .

Naturally if you utilize a business leasing equipment firm you are therefore not disturbing any other credit facilities you might have in place, such as short term revolving lines of credit. And again, with decent credit you don’t have to pledge other collateral and solid credits can often negotiate a limited or no personal guarantee.

Have we made out point? We hope so. Don't overlook lease financing as a valuable source of business funding. Speak to a trusted, credible and experienced Canadian business financing advisor on solving your asset finance need 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 . 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_equipment_business_finance_source.html

A Shortcut To Leasing Equipment And Business Finance Lease Solutions & Services In Canada

Isn't any shortcut in business better? As shortcut is of course a ‘method or procedure that reduces time or energy and still accomplishes something ‘. Is it just us but isn't any Canadian business financing shortcut absolute good thing, as well as an advantage over your competition?

We're going to cover off some great shortcuts for leasing equipment in Canada, and how the ability to get a business finance lease with the best rates, terms and structures becomes a financing services victory for your company.

Also, when you can add a host of other programs services and structuring that are uniquely suited to your business... well... clearly that’s a win.

Doesn't it make sense to know what you are looking for prior to going out to get it - that's our first shortcut tip - determine whether you need an off the shelf lease financing services solution, or whether a customized business leasing equpment solution is required . A simple way to achieve this shortcut is to focus on the 5 elements of a lease, and which ones need special attention for a finance lease based on your company circumstances.

What are those key elements - simply the term of the lease, the interest rate associated with your credit quality, the size of your transaction, the monthly payment your cash flow budget can afford, and finally the end of term option that again, best suits your firms needs.

That's a mouthful, but most Canadian business owners and financial managers don't realize they have the ability to influence, and in some cases negotiate some of the key five elements - thereby creating your shortcut to leasing equipment finance success.

Let's delve into that further. Let's assume you know the asset or equpment that you want - you've evaluated your requirements and want a financing services program that best suits your company.

Now its time to take work on getting the flexibility you need to maximize those financial advantages. They include of course full financing of your asset with minimal or no down payment, flexible monthly payments geared to your cash flow and working capital concerns, the ability to use off balance sheet financing if you need it , or even in many cases generate a positive cash flow by leasing back equipment you own already .

In many cases you can achieve a quick shortcut to lease financing approval by working with your lessor on a term that works for both of you - it has to be a win win situation. On your side you want to match payments to economic benefits of the asset you are financing... the lessor is more concerned with asset value deterioration and your overall all credit worthiness.

If you are generally familiar with the finance lease business and leasing equipment industry in Canada you know it consists of a multitude of players , they all have different ownership , some foreign, they have different asset needs, and their pricing they provide you with is based on , guess what, their own borrowing practices !

The shortcut to best pricing and best structure is therefore knowing what leasing finance firm has the best appetite and expertise to provide you with a business finance approval that works .

In summary, if you want to achieve shortcuts in business financing services related to leasing equipment you would do well to speak to a trusted, credible and experienced Canadian business financing advisor who knows the business and will accelerate the shortcut to best asset financing you can hope to achieve .



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_equipment_finance_lease_business_financing.html

The Best Tools and Resources for Equipment Finance and Asset Lease Success - A Canadian Leasing Equipment How To !

It's your call, but if your firm has ever experienced a challenged in purchasing an equipment asset it’s about time you understood the benefits and flexibility of equipment financing via a leasing strategy.

The reality is that for most Canadian firms not all benefits attached to leasing equipment will necessarily make sense for you, but your ability to capitalize and maximize on those benefits that do will save you potentially thousands of dollars.

Today’s business world is all about competition and your ability to acquire an asset lease allows you to win the battle against deprecation and obsolescence. Quite frankly though many firms actually acquire used equipment in a variety of asset categories and this part of equipment finance in Canada is a booming one. The recent 2008-2009 recession left a glut of assets in many industries such as printing, construction, etc.

When it comes to technology financing though new is probably better, and that’s where lease financing shines. When you consider the relatively short time span it takes to arrange such a lease it often becomes a true advantage over a loan or bank term loan scenario .

Clients often ask what the ' entry points ' are to leasing in Canada. Frankly assets from three thousand to the millions are leased everyday in Canada - the bottom line is that equipment finance doesn’t discriminate against size. Stats available in the U.S. and Canada suggest that over 80% of firm lease equipment at one time or another.

Is there one constant driver in the search for great asset lease solutions? We think that more often or not it’s limited capital. Clients seem to feel that the most efficient use of their working capital and cash flow is the ' driver ' for their search for leasing equipment options. And as we said, that goes from hi tech, to low tech, whether you are financing newest computer and software technology, or refurbishing plant and equipment or transportation ' rolling stock' type assets.

As a Canadian business owner your preference is for choices. Asset lease transactions provide you with those! Focusing on either the type of lease you are acquiring, the need for a specialized term (leases generally are available for terms of 24 months to 7 years - depending on the asset and your firms overall credit quality.

Many smaller and medium sized firms don't take advantage of operating leases when considering the equipment finance option. This strategy can lower your payments, perfectly match the use and term of the equipment to your needs, and create balance sheet and accounting enhancements that will allow you to acquire the latest technology without taking on long term debt.

And don’t forget our friend ' Bundling ‘. Do you know him? Most business owners don’t realize that a lot of soft costs around an asset lease transaction don’t need to be paid out in hard cash. They can be in effect ' bundled ' into a transaction - typically these items include maintenance, warranty, installation, delivery, training, etc. That’s true flexibility.

If you want to be on the cutting edge of asset acquisition in today’s competitive environment then speak to a trusted, credible and experienced Canadian business financing and leasing advisor who can ensure a structure and approval that makes sense can be completed in a timely manner to your firms advantage.



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/equipment_finance_leasing_equipment_asset_lease.html

Why Finance Companies Are Your Best Bet For Leasing Equipment via a Capital Lease

Looking to improve? Aren't we all! Improving your business with respect to the acquisition of new business assets is a major decision for Canadian business. What is the current state of the leasing equipment market in Canada, and what finance companies are your best bet and why?

Even though you're taking on additional debt when you acquire a capital lease option the committing of your cash resources can still be properly managed using an equipment financing strategy. You're making the decision because you want to utilize the asset to improve productivity and profits.

We can certainly help our clients finance the asset, but it’s up to you to ensure you choose the right asset, negotiate a best sale price, and ensure the business asset meets your needs. The reality is of course that your leasing equipment decision is an important one - its an alternative to paying cash outright, or drawing down on credit lines you might have in place - and most of our clients agree that the ability to secure business credit for working capital is a large challenge these days, so using those funds outright for an equipment purchase doesn’t seem to make sense.

You have chosen a capital lease, or a lease to own option. The alternative was an operating lease, or a use and return of the asset and that hasn’t made sense this time around. Finance companies in Canada can structure payments that make sense for your firm. Typically clients have budget constraints, have some seasonality in their business... etc. This is typically when leasing makes more sense than a loan, because it’s so flexible and tailored to meet your specific financing needs.

In the current Canadian leasing equipment landscape and environment of 2010 /2011 you may well be expected to make some sort of down payment, but again, this is negotiable. Talking to your accountant might bring up further reasons why the tax advantages of lease financing might make you decision to finance an even easier one.

Finance companies recognize that you are in many cases using a leasing equipment strategy simply because you can obtain assets you might not be able to afford. These firms have only one mandate... approve and fund your leases! Consequently their credit people are experts in looking at your overall picture, which includes your firm’s financials, the value of the asset itself, which is of course the collateral, and your projected profits via use of the equipment.

Your decision to enter into a capital lease should be relatively straight forward; the challenge is often picking the right partner. The Canadian landscape is made up of hundreds of firms who have specialization, only regional representation, or in some cases your transaction will be viewed as too large, or too small. Navigating that maze is a challenge, so see the service of a trusted, credible and experienced business financing advisor who will help you get approved and negotiate the best terms possible. That added value along can improve your overall return on investment and make your decision to finance a solid one.
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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 6 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_equipment_capital_lease_finance_companies.html