Leasing Financing In Canada. Equipment Finance In Canada Can Be Difficult Only If You Want It To Be

Asset Financing Needs Happening In Super Slow Motion


OVERVIEW – Information on leasing finance in Canada. Is There A Better Way to Manage Equipment Finance needs



Leasing Financing in Canada. Does it sometimes feel that you're fixed asset needs are travelling in Super Slow Motion? That undesirable speed doesn't have to be the case in equipment finance. Let's dig in.

Successful Canadian business owners and managers in Canada recognize that at certain times in their business cycle they need to obtain the right assets to grow and operate the company. They are of course restricted for many reasons, one of them being: Cash!

You may be dealing with a number of different suppliers and vendors that are critical to your business - they include your technology needs as well your manufacturing and rolling stock.

In many cases it makes tremendous sense to seek out financing from the actual vendor itself. Larger successful brand name firms often offer in house financing for their products and services. They might be doing the lease financing themselves, or partnering with a financial institution to make the acquisition easy.

Even your firm could do this with your own products /services by the way if that is common in your industry, but that's a subject for another day.

One of the challenges for firms who utilize asset financing via leasing is the issue of who to deal with. No knowledge of the industry players will have you potentially dealing with companies where you won’t meet their approval criteria. Other factors include the dollar size of the transaction, the nature of the asset you are financing (that’s where specialized players in equipment finance make sense) as well as geographical limitations.

In some cases it makes a lot of sense for you to investigate operating leases. That makes tremendous sense when looking for financial solutions for needs such as technology, or for your truck and car needs. That solution allows you to lower acquisition cost, monthly payments, etc. You're using the assets with the intent of not owning them when you're considering an Operating Lease.

One other area to ' beef up ' your knowledge in equipment finance is the area of terms and documentation. Here's where some good information and advice can save you thousands of dollars around your rights and obligations in a lease.

Top experts in the field say that at the end of the day you should have three goals in leasing financing:

1.Getting the access to capital that you need to grow your business and maintain the competitive edge

2. Manage costs

3. Risk avoidance re obsolescence of assets, interest rates, etc


One final tip - Consider a lease line of credit option. One initial approval process can allow you to be pre-approved for all your asset finance needs. That allows you to focus on putting those asset finance needs into ' warp speed ‘ ... not slow motion.

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 leasing financing 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 - 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-financing-equipment-finance.html




CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com


















Stan Prokop

Is A ‘ Good Enough ‘ Equipment Loan & Finance Lease Better Than ‘ Best ‘ For Canadian Finance Lease Needs ?

We're pretty sure, in fact very sure, that ' good enough' is not the attitude you take in any aspect of your business or business financing needs. Settling for 2nd best in today’s competitive environment is not a recommended strategy! So let’s look at how you can achieve some of the best leasing and financing equipment loan strategies for finance lease success in Canada.

New assets are always a challenge for acquisition when Canadian business owners and financial managers assess their respective financial positions. The price and therefore how you will finance these assets is of course critical to your overall asset acquisition strategy.

So when it comes to reducing cash outflows and in effect saving monies via a financing strategy is any wonder why over 80% of Canadian businesses utilize leasing financing as an integral part of their finance strategy.

But the reality is that many owners and managers don't understand the make up and the competitive offerings that make up the Canadian equipment loan and lease landscape. Even more importantly just understanding the rights and obligations and options of different types of leases can save any business owner or manager thousands of dollars, depending on overall purchase price. Even more dramatically we can say that making the wrong decision can actually cost you significantly.

Let’s utilize a quick example. Let's say you are focused on the amount of monthly payment and want to buy a 150,000 computer and software package (yes, software can be leased). So you contact a firm who you think can give you the best monthly payment, and you find you are quoted and approved for a 5 year term, monthly payment of 3000.00$. A quick expert calculation will tell you that you will pay 31000$ in interest over that 5 year term at current competitive rates. Sounds ok?? Maybe, maybe not.

Moving on... what if we told you that you could finance that same system for 3500$ / mo for a 3 year term , and at the end of the term you could return, upgrade , or choose to extend the lease .
For only 500$ more you have shortened your term, recognizing that most computers don’t last 5 years. In effect you have utilized an operating lease strategy to effectively manage your assets - that’s a solid financing decision in leasing financing.

We have utilized a simple example of how you need to in essence separate the pricing and the purchase of the asset from the decision of how to finance that same asset.

We're the first to admit the leasing process can be perceived as complex in Canada. There are hundreds of equipment loan and finance lease firms. They have different ' credit boxes ‘- meaning simply you must fit into their asset, deal size, and credit criteria box. Additionally numerous firms tend to complicate matters by throwing arcane terms at you such as ' down stroke ' , ' security deposit ', 'capital lease ' ' off balance sheet financing ' ' admin set up fees ' .. Etc. And on it goes.

In summary, leasing financing in Canada has huge benefits. Billions of dollars of assets are leased every year. Your competitors finance their assets. And yes, you could very quickly go out and achieve a ' good enough ' lease.

Want a better solution though? Simple speak to a trusted, credible an experienced Canadian business financing advisor. ' Good enough ' will soon become best when it comes to sourcing and structuring asset financing that makes sense from a Canadian equipment loan perspective .

P.S. We knew you would never settle for 2nd best!





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/equipment_loan_finance_lease_leasing_financing.html