Business Financing In Canada : Leasing Finance Delivers Asset Acquisition Success

Old School or New School ? Financing the Assets you need in your business !

Information on leasing finance and equipment lease rates and approvals in the Canadian asset financing industry . Business financing includes the need for business owners/financial managers to understand their asset acquisition alternatives

Business Financing In Canada . Are you 'old school' or 'new school' when it comes to leasing finance in Canada. We've always thought there is nothing wrong when it comes to being ' old school ' sometimes when it pertains to business. (In hindsight we would have been a lot smarter in the Dot Com era!).


However, when it comes to maximizing the benefits and business financing availability for equipment lease rates and solutions we are categorically recommending a ' new school ' attitude. Let's dig in.



Trends now show that leasing assets in Canada often approaches 80% of all asset financing in Canada. So why is that the best choice? And are you too late to get into the game? We don't think so - so let’s try and prove to you how you can adopt a more positive asset acquisition strategy when it comes to acquiring your business assets. And by the way, those assets cover everything under the sun these days; including software, computers, rolling stock for your fleet, production equipment... you name it.


The key to being successful in leasing an asset in Canada your ability to have a solid understanding of the lay of the land. What does that do? It allows you to leapfrog barriers, and that’s a good thing.


And when it comes to understanding that ' lay of the land ' you really have only two options - the first being to become an expert yourself, and the other is to rely on expert guidance from an experienced business advisor - and more often than not that advice is ... FREE!


The actual ' boring ' part of lease financing in Canada might in fact be the documentation that comes with your transaction. And some lessors do a great job of keeping this area of the industry boring, and complex... stuffed with all sorts of ' legalese '. Thats why its often critical to take a bit more time on the ' terms ' conditions of any transaction, no just those equipment lease rates which often seem so all important to clients.


Just picking correctly one of the two leas options types that are available to your firm can make you quite ' new school '. And that decision is often not as hard as you think - your choice is simply a ' lease to own' strategy, or a 'lease to use ' strategy. Respectively they are called capital leases and operating leases. So when it comes to the numbers those two lease types can dramatically change monthly payment, lease obligations at end of term, tax and balance sheet treatment, etc.


When you understand your options in lease finance in Canada you clearly have the ability to become ' new school '. When you understand the many advantages of asset financing this solution becomes the de facto alternative for acquiring assets for your company.


Which School Do You Attend When It Comes To Leasing Finance ? Old School Or New School ? It’s Not Too Late To Become New School In Canadian asset finance . Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your departure from ' old school '!




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. Info & Contact Details :
http://www.7parkavenuefinancial.com

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 '

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

Business Equipment Lease Financing In Canada - You Need To Know These Asset Leasing Finance Issues

4 Things You ( Probably ) Didn’t Know About Equipment Financing

OVERVIEW – Information on aspects of business finance equipment leasing not always considered by owners/managers who are acquired fixed assets. Here’s what you need to know about some key leasing finance issues








As business equipment lease financing is used by over 80% of Canadian business borrowers one would think the business owner/financial manager utilizing leasing finance would pretty well know all there is to know about the popular financing vehicle. One would think... but that's unfortunately not the case. Let's examine some key aspects on that point. Let's dig in.


A good start is to re enforce the fact that more than ever the advantages of leasing still remain pretty well constant. They include 100% financing ( in some cases a down payment might be required ) , as well as the cash flow savings inherent in the transaction - allowing your company to match cash flow to useful life of the asset. Knowing those fixed payments won't change during the life of the lease allow the owner / manager to better handle cash outflows?

1. Accounting is critical to your lease transaction - the reason that is important is the flexibility that comes with this method of financing. Because you have two separate choices when you enter into a lease the way you account for the lease has implications for how that affects your balance sheet and income statement. The best way we explain this to clients is that you have to decide whether the lease you are entering into is a:

Lease to own

Lease to use

Respectively, the technical term for each of these choices is CAPITAL LEASE... or OPERATING LEASE.

The best way to think of that decision point is often referred to as ' risk and rewards of ownership ‘.

So bottom line, if you choose a capital lease as an example you have chosen to own and dispose of the asset and account for it in that manner.

2. What's the deal on which of those two choices you choose? Typically lessees (that’s you) choose operating leases when they are focusing on using the asset but wanting to upgrade or return it at the end of the lease term. The capital lease denotes ownership, on the other hand.

When you enter into a capital lease you should be focusing on how long you are going to use the asset, and how you will dispose of it at the end. That can be via selling it yourself, or using it as a ' trade in' of sorts on a similar use asset.

KEY POINT - During and operating lease you can modify payments via upgrades, lease extensions, etc. Capital leases have a ' hell or high water' clause that specifies you're responsible for all the fixed payments for the term of the lease. There is almost never ' no mercy '

on ' buying out' the lease.











3. Residual Value - in both our lease examples it’s important for the owner /manager to focus on the value of the asset at the end of the lease term. For the capital lease that will involve how you handle the ' book value' on your accounting records, as well as knowing what you might be able to get for the asset if you sell it.

The operating lease places even MORE focus on the residual or final value of the asset at end of term. That’s because with that lease you have the right to return, upgrade via a trade in, or simply extend payments for a mutually specified period of time.

4. SUBLEASING? In certain cases your firm as the owner of the asset can ' sublease 'the asset to a third party. In effect your company becomes the lessor! While you are still responsible for the payments you are collecting all or a portion of those payments from a third party. In larger firms this might be to a subsidiary on an inter company transaction.


If you want to ensure you're benefiting from all the positive aspects of acquiring assets through financing 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 you equipment 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 BUSINESS EQUIPMENT 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

How’s Your Business Financing ‘’Lease or Buy ‘Expertise? Assessing Your Lease Financing Options

Analyzing Business Asset Acquisition Alternatives


OVERVIEW – Information on the lease or buy decision that owners face when they employ a lease finance option in their overall business financing strategy



Did you realize that when it comes to Canadian business financing the 'lease or buy ' decision is actually an ' investment ' decision? Let's look at some key aspects of leasing finance that will help you analyze the alternative you might not know you have!

While various business assets can be leased, i.e. land, office, etc our focus today is on equipment and assets. The key advantage of leasing these assets is that it allows you to free up scarce capital that you would otherwise spend in other aspects of your company... i.e. daily operations!

The challenge though, for the Canadian business owner and financial manager is knowing how long you will hold the asset, and if it will have any value at the end of your usage and lease term. And because it's a lease, and not a purchase you can’t make unilateral decisions to sell the asset or make a dramatic change to it. Your lessor of course has a buy in into that decision, and the reality is they borrowed the money also and have locked in a certain yield they hope to achieve on all your payments.

We love talking to clients about the ' lease vs. buy' decision as some are keenly aware of the key drivers in that decision, and others... are not!

So what are some of those key drivers? They include the actual cost of the asset, taxes, accounting treatments re book value, as well as making an intelligent decision around what the leasing company calls the ' useful economic life ' of the asset.

Cash flow is critical in the business owner’s final decision around the asset acquisition, but at the same time you want to ensure that you also consider the profit generating aspect of the asset.

Many business owners don't fully understand their ' cost of capital ' , and other factors to consider are areas such as debt vs. equity , given that debt is pretty well always cheaper than reducing ownership control via equity dilution . And if your company has a reasonable amount of equity and a clean balance sheet you can achieve very attractive lease costs in today’s business financing environment.

Not all the lease / buy decisions you are faced with have to do with ‘the numbers ‘. A good example – purchasing or leasing new technologies for your employees give your company both a solid reputation and are somewhat of a morale booster. In certain cases because of government legislation you may even be forced to lease or purchase assets you might not necessarily have wanted to... or needed. That’s our governments for you... here to help ..!?!
Clearly good it’s always good to focus more so on revenue producing assets, and in particular ones that produce sales and profits. On occasion though the business owner finds himself or herself faced with the proverbial ‘guesstimate ‘when it comes to business asset acquisition.

So can we summarize some of the critical factors in the ‘leasing or purchase ‘decision? They might include:

Revenue and cost issues

Tax/accounting/depreciation/useful life issues

Budget constraints

Intangible issues re customer and employee perceptions

If you’re not totally comfortable with acquiring assets under a lease / loan or purchase strategy seek out and speak to a trusted, credible and experienced Canadian business financing advisor today.

7 PARK AVENUE FINANCIAL
CANADIAN LEASE FINANCE EXPERTISE



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

Which School Do You Attend When It Comes To Leasing Finance ? Old School Or New School ? Equipment Lease Rates And Approvals In Canada

It’s Not Too Late To Become New School In Canadian Asset Financing


OVERVIEW – Information on leasing finance and equipment lease rates and approvals in the Canadian asset financing industry .




Are you 'old school' or 'new school' when it comes to leasing finance in Canada. We've always thought there is nothing wrong when it comes to being ' old school ' sometimes when it pertains to business. (In hindsight we would have been a lot smarter in the Dot Com era!

However, when it comes to maximizing the benefits and business financing availability for equipment lease rates and solutions we are categorically recommending a ' new school ' attitude.


Trends now show that leasing assets in Canada often approaches 80% of all asset financing in Canada. So why is that the best choice? And are you too late to get into the game? We don't think so - so let’s try and prove to you how you can adopt a more positive asset acquisition strategy when it comes to acquiring your business assets. And by the way, those assets cover everything under the sun these days; including software, computers, rolling stock for your fleet, production equipment... you name it.

The key to being successful in leasing an asset in Canada your ability to have a solid understanding of the lay of the land. What does that do? It allows you to leapfrog barriers, and that’s a good thing.

And when it comes to understanding that ' lay of the land ' you really have only two options - the first being to become an expert yourself, and the other is to rely on expert guidance from an experienced business advisor - and more often than not that advice is ... FREE!

The actual ' boring ' part of lease financing in Canada might in fact be the documentation that comes with your transaction. And some lessors do a great job of keeping this area of the industry boring, and complex... stuffed with all sorts of ' legalese '. Thats why its often critical to take a bit more time on the ' terms ' conditions of any transaction, no just those equipment lease rates which often seem so all important to clients.

Just picking correctly one of the two leas options types that are available to your firm can make you quite ' new school '. And that decision is often not as hard as you think - your choice is simply a ' lease to own' strategy, or a 'lease to use ' strategy. Respectively they are called capital leases and operating leases. So when it comes to the numbers those two lease types can dramatically change monthly payment, lease obligations at end of term, tax and balance sheet treatment, etc.

When you understand your options in lease finance in Canada you clearly have the ability to become ' new school '. When you understand the many advantages of asset financing this solution becomes the de facto alternative for acquiring assets for your company.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your departure from ' old school '!

Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

Don’t Overlook These 5 ( Other ) Leasing Finance Issues On Lease Documents In Canada

Successful Equipment Leasing In Canada Depends On …


Information on leasing finance in Canada and why issues such as lease documents should not be overlooked re risk and advantages for lessees in Canada .


Leasing Financing in Canada. It could not be any more popular than it is. In fact a recent major study indicated the following:



Canadian business optimism is increasing

Canadian firms have challenges accessing certain types of finance (not leasing by the way!)

Access to asset financing was the 2nd largest concern expressed by the majority of business in Canada (No surprise that government bureaucracy was the largest concern)

Canadian Asset lenders are the largest provider of debt asset financing in Canada behind the Chartered banks in Canada

84 Billion dollars of assets are under finance in Canada by asset based lenders/lessors



Awhile ago, we wrote on 5 key documentation issues that Canadian business owners and finance managers have to ensure they address when it comes to lease documents . We pointed out that often it’s the terms, conditions and documentation around equipment financing in Canada that makes or breaks a successful vs. non successful lease transaction.

Those issues were master leases, warranties, ensuring you understand the different between capital leases and operating leases, asset registration issues, taxes, and return requirements. So that's it right?

But wait, as the fellow on TV says, ' there's more! Let’s examine some other key issues you probably need to consider to ensure that confidence that comes with knowing you have entered into a win/ win transaction with a lessor of assets.

One of those is maintenance, meaning that you need to ensure you understand your written obligations on maintaining the asset in good working order. This becomes even more important when you in fact have the intention or obligation of returning the asset in question.

Insurance becomes our 2nd issues to ensure you consider. You will often be required to produce a certificate of insurance which names your lessor partner as beneficiary in case of loss, theft, damage, etc. That’s just common sense of course, given they are financing the asset.

Thirdly, in certain cases you might want to ensure your lease specifies you have the right to assign the transaction to a third or related party. Naturally you want to ensure this right, if required, is not ‘unreasonably withheld ' as the lawyers say.

You may also wish to address the area of location to ensure you have the right to move the leased asset to another location, perhaps a branch plant or other office, etc.

Finally, in the case of say technology assets, i.e. computers, telecom assets, etc, make sure you clearly understand what can be added to or removed from the asset. In our tech example a good example might be software or additional disk drives, etc.


There you have it, 5 ' OTHER ' things to consider in the critical area of lease documents in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in structuring a transaction that makes sense.

7 PARK AVENUE FINANCIAL

CANADIAN EQUIPMENT FINANCING EXPERTISE





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

Don’t Overlook These 5 Leasing Finance Issues Around Lease Documents In Canada

Don’t Forget These Issues When Leasing Assets In Canada !


Information on leasing finance in Canada and the importance of address key issues within lease documents when financing equipment and other assets.




Leasing finance in Canada. Just how important is the issue of ' lease documents ' when it comes to equipment financing in Canada. When you speak to companies who have encountered what we can diplomatically term as ' issues ' in the past with their lease transactions you just might find that a lot of those issues revolve around key terms and obligations in your transaction.

Let's examine 5 of those key points, with a focus on protecting your rights in the transaction with a fair lease transaction - because at the end of the day also those same issues have to be fair and make sense to your lessor.

We would also point out that many of these issues can be negotiated and that’s important for the Canadian business owner and financial manager to know.

First of all it makes great sense to consider signing one master lease with your leasing company of choice. Why ? If only for the issue of saving time and money , as this type of document addresses once and for all , the terms of all future lease transactions . Larger transactions will tend to always have a ' master lease ' scenario in place anyway given the complexity of a larger transaction. It's not all that complicated, but many firms might want to have their lawyer look the document over once, as it identifies the rights an obligations of both parties and describes the financial terms of the deal.

Second issue today ... warranty. Make sure you understand your warranty rights on any asset you purchase. Many Canadian business owners/ managers confuse, mistakenly, the finance firm as their ' vendor ‘. That is not the case... they are financing the transaction for you, not providing a warranty. It gets very complicated, and somewhat ugly, when businesses withhold payment to their lessor for product defect issues.

In Canada there are two types of leases essentially when you enter into a lease contract - a capital lease ( lease to own ) and an operating lease ( lease to use) . Capital leases typically have what is known as a ' hell or high water ' clause in them which basically means that you agree to make your payments, no matter what!

The third issue to watch out for is the issues of liens and registrations against any asset you purchase. This typically is not a problem is your are purchasing from a legitimate vendor , but leasing finance in Canada also means you can finance used equipment - so its critical that you ensure that you and the lease company have clean title to the asset .

Fourth issue today - taxes. Lease payments in Canada will include the provincial and federal portions of tax due on the monthly payment amount. Don't forget to budget these into your cash flows. This issue brings out a positive advantage of leasing finance in that your taxes are in effect financed, unlike a loan type transaction.

Our final issue today is the issue of use and return requirements. Examine carefully your obligations around the type of condition you must return the asset in when your transaction calls for an asset return to the lessor. And make sure the location and costs involved around that make sense to you the lessee. If you are entering into an operating lease and have the right therefore to extend the transaction or purchase the asset it just makes sense to maintain the asset properly.

Bottom line; don’t forget the ' terms ' part of any leasing finance transaction in Canada. Issues not addressed now will be costly and time consuming later.
Speak to a trusted, credible and experienced Canadian business financing advisor on assistance with lease documents and issues that protect your firm and enhance the true value of leasing in Canada.

7 PARK AVENUE FINANCIAL
CANADIAN EQUIPMENT FINANCING EXPERTISE






Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

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

Canadian Lease Finance Solutions – Why Not Now?

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


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

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

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

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

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

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

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

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

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

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

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

7 PARK AVENUE FINANCIAL
CANADIAN LEASE FINANCE EXPERTISE



Stan Prokop - founder of 7 Park Avenue Financial –
http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial..com/operating_capital_lease_leasing_finance_leases.html

Is There A Hole In Your Leasing Finance Sidewalk ? Get A Canadian Lease Finance Company

Winning With A Proven Equipment Finance Strategy

Information on maximizing leasing finance for Canadian companies who want to ensure they are working with the right lease finance company and receiving key financial benefits not understood by all .



A hole in your leasing finance sidewalk? It's an interesting play on words around a current popular book making the rounds. We thought it was a neat analogy for Canadian business owners who want to make the most out of a lease finance company strategy... but instead keep making the same mistakes when it comes to being successful in equipment financing.

In essence their equipment lease strategy becomes a hole in their business, and managing what might seem like a complex process leads to that ' hole in the sidewalk '.

So how does one fix that hole? It's simply by focusing on taking control of your lease strategies and maximizing all the benefits around the financing of the assets in your business. It's kind of about working smarter, not harder.

We of course can forgive the average Canadian business owner and financial manager for thinking that anything to do with a lease finance company might seem complex. Naturally we all cant be experts in every field, and we met hundreds of firms over the years who utilize a lease finance company for asset acquisition but constantly either make the same mistakes or don’t consider issues they need to think about .

Probably the best advice we give to clients when it comes to the entire process of equipment finance is that they should try and view the whole process as a journey.

What does that journey involve? Well it becomes a situation wherein you have to pick the right partner firm evaluate the right type of lease for your needs, and then work through credit approval, documentation and final funding.

And just when you think its over, guess what, it isn't. That's because one of the greatest ' holes in the sidewalk ' for Canadian business owners utilizing equipment finance is the whole issue of end of term, i.e. the bank end of your lease transaction.

What then does the Canadian lessee need to consider? He or she clearly wishes they could eliminate some of those financial ' holes '.

To do that you need to either understand yourself, or bring in an expert on who are the real players in the Canadian marketplace. Leasing assets in Canada is clearly firing on all cylinders these days, and knowing who do deal with is critical.

You also want to understand how lessors make their money. Of course there is the implied interest rate in your transaction but issues such as down payment, residual values, etc play a key role in your overall financial success on the transaction.

Is leasing always the best choice? It might not be, especially in certain key areas such as a sale leaseback transaction, where a term loan might make more sense for a variety of reasons.

Wasn't there a Beatles song on SGT PEPPER called ' FIXING A HOLE '? Consider doing that, financially speaking, and seek and speak to a trusted, credible and experienced Canadian business financing advisor who can help you meet leasing finance needs in Canada.





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

Have Questions On Leasing Finance and Equipment Financing In Canada ? Common Sense Approach To Asset Lenders

Work Through The Lease Finance Process With New Confidence


What questions and issues should owners be asking or facing when it comes to leasing finance in the Canadian marketplace . What key issues in equipment financing should business owners address when it comes to working with asset lenders for structures that work for your firm .




In a perfect world, ( know it's.. not! .. but ..) your ability to successfully structure business financing is critical to your firms survival. Let's ensure you've got a solid handle on leasing financing when you're entertaining equipment financing as a strategy for success. And in the process we'll ensure you've got a solid handle on asset lenders in Canada.

The long term goal is to make equipment financing make sense. That of course means ensuring you have a reasonable level of pricing on your transactions, and, most importantly, that the proposition put forth by asset lenders in Canada makes sense... for your firm! So it’s therefore about asking the right questions and following up on those to make good business financing decisions.

Common sense dictates you want to talk to asset lenders based upon your final choice of an asset that will add value... and profit to your business. You will find yourself going through a three pronged stage of negotiations and fact finding (for you and the lessor)... on then to approval and commitments by both parties, and finally documentation and funding. Seems simple right, so where then do things go wrong?

Your firm makes a stronger case for leasing finance when the asset you have chosen allows you to grow your business and generate additional cash flow. But at the same time you should also be thinking of the term of the transaction, i.e. how long will this asset last. In a perfect world you want to try and best match the useful life of the asset to the term of the lease. In initial discussions with asset lenders ensure they understand the assets value in your overall growth and future plans... that’s important.

Choosing the asset is half the battle, ensuring you can pay for it is of course the other half. That's why some basic cash flow analysis and payment budgeting should be critical at this point in your finance decision. A simple financial calculator can calculate estimated lease payments in seconds. Although we're still at the beginning of the transaction give careful thought to what will happen to the asset at the end of the lease - for example, do you want to use it, return it, re finance it for an extended period of time, etc...

We've spoken recently on ' the box ' in leasing. What's the box? asks our clients. It’s the proverbial credit box - that cage that lessors try and put you in to ensure you perfect fit into the box modules - deal size, asset type, your credit quality, pricing re interest rate they will charge... etc.

We've seen clients spend countless hours, days, weeks, even months! muddling their way through the boxes. This where some common sense information on what type of equipment financing company most suits your firm is worth a lot .. in terms of time and money. Your ability to present the asset, your credit quality, and your long term viability when it comes to making payments is critical at this point.

Experts. You can’t be expected of course to know the substantial and fragmented nature of leasing financing in Canada. Who are the asset lenders, which one suits your perfectly, and are you working with the right firm if you have had financial challenges in the past that will be convincingly solved in the future.

We continue to believe the common sense approach to working with an expert in any area of your business makes sense .Speak to a trusted, credible and experienced Canadian business financing advisor to ensure you have the questions, and the right answers! in place for Canadian asset lenders. Allow the power of leasing finance to help you over achieve on your business finance goals.





Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

Don’t Strike Out With Canadian Leasing Finance Companies – Hit Home Runs Via A Financing Equipment Company

Sports analogies don't always work, but this time we think it’s quite appropriate. Striking out, i.e. losing when you are considering financing equpment strategies in Canadian lease finance should not be part of your preferred ' home run ' strategy when you work with a lease company.

The exhilarating feeling of the ' home run ' in equipment finance comes from completing a transaction for a new or used asset, knowing that you have achieved solid success , i.e. your ' home run ' based on a final great approval, rate, lease term, and flexible structure .

Strike outs rather, come from that other feeling, the sinking one, realizing that you have been pushed into a transaction that doesn’t make sense. Many lease finance firms in Canada are only happy to put you into a final structure that fits their approval and security criteria, not necessarily yours.

So, keeping our sports analogy in place, how do you create a winning streak for financing equipment success in Canada? We believe its simpler than you think, if, and its a big if sometimes, you are ‘armed and dangerous’ relative to knowing your lease options , and what leasing finance benefits accrue most favorably to your company .

First it’s all a questions of ' fit '. In Canada there are three general categories of a financing equpment company. They are small, medium and large... ticket that is. (Almost feels like buying a suit, doesn’t it?!) So when you have a new or used asset to finance remember that you should be working with a firm that specializes in your size and asset type. Why spin wheels approaching , talking to , and asking for a lease quote for a new computer system for your office when the lessor is only looking at transactions several million dollars and over - bottom line its a waste of your time, and theirs .

Step 2 simply understands lease products. In Canada, we keep it relatively simple... (The U.S. has tax leases, trac leases, leverages leases, synthetic leases, etc!) But us Canadians can generally get by with capital or operating leases. A simple way to remember both is simply lease to own, ( capital ) or lease to use, (operating ). Knowing the type of lease you want can save you a lot of time, plus potentially thousands in interest rate and total payments made savings.

The 2 other areas of Canadian leasing finance that you should be knowledgeable about are lease options, and approval criteria. When you investigate leasing finance is aware of critical issues such as down payments, security deposits, the total all in rate, hidden registration fees, etc. Bottom line; spend some time on certain areas of the fine print when that makes sense.

We done necessarily agree, but most clients think that rate and monthly payment is the ultimate home run criteria in Canadian leasing company negotiations . We haven’t told them that in Canada, unbeknownst to most customers, you actually get to pick your own rate.

How? Simply because rates are provided based on credit criteria, and knowing your firms credit and how to present it generally allows you to gain the best rate possible without much negotiation. The good news is that Canadian firms with great credit can get lease financing, and firms with less than great credit, i.e. financial challenges can also achieve lease approval through a more structured approach - i.e. a shorter term, or perhaps a down payment.

Well that’s it. Hopefully you feel confident now as you step up to the bat that you can achieve a financing equpment home run. Its simple , just remember our basic tips around lease types, how rates are determined, and types of leases and how the industry is segmented in Canada .

P.S. See you at the World Series!



Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Turning Canadian Business Equipment financing Challenges Into Opportunities - Leasing Finance Works!

Over the last year or so business financing availability has declined for many firms. Let's examine how one strategy, business equipment financing - can be turned into an opportunity for your firm to succeed. Leasing finance works and we'll show you how with valuable inside tips.

How many options does your firm have when it acquires new equipment? To our way of thinking, only three - you purchase it, you lease it, or you arrange for term loan financing. The math around leasing finance often shows you it might be marginally more expensive than outright purchase. That’s because more financially astute firms have the ability, and do, to run extensive lease versus buy scenarios.

So why would you typically want to choose a financing option such as business equipment financing via a lease if it turns our it’s a bit more expensive.

We think the compelling reasons to utilize lease financing revolve around some very important ' real world ' issues such as quick access to credit, conserving operating working capital, accounting issues such as keeping the asset potentially off your balance sheet , and , getting down to brass tacks .. You as a user don’t want to end up owning a ' boat anchor ' of an asset that is still on your books but has little use or very little economic and financial value.

If your time is at a premium, and which business owners time is not, then you will surely be pleasantly surprised that the life cycle of acquiring your asset and financing it is much short via an equipment financing solution.

We have already shown you that financing options are limited, so why not choose the easiest and quickest route to approval - which more often than not is business equipment financing. The majority of approvals can be arranged within a week or so if you have a basic package that includes the asset quote or descriptions, your financials, and some basic business overview material on your firm and industry.

Many times the business owners challenge is what to do with equipment at the end of the lease - a lot of things can change in 3 or 5 years, which are the most typical lease terms. (By the way, it’s not unusual for some assets to be financed via leasing finance over 7 - 10 years; but you'll need to demonstrate company viability and asset value at end of term).

But back to that end of lease scenario - think of all the challenges - which might include: do you want to own the equipment, will you choose to return it, and will the asset be required for some indefinite time at the end of the lease...? Etc. All of those are unknowns, or challenges to your business financing. Yet leasing finance solves all of those - a carefully constructed operating lease can give allow you to face all three of the above challenges head on, and be in control of your asset destiny.

In summary - all business financing tends to be a challenge. In some cases of asset acquisition the challenge is layered with elements of risk and a lot of the unknown. Speak to a trusted, credible an experienced business financing advisor on how you can turn asset acquisition challenges into controlled opportunities for growth, asset management, and profit.

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Stan Prokop - founder of 7 Park Avenue Financial -
http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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