Still Not Leasing For Business ? Commercial Equipment Financing In Canada (Small or Large ) Will Change Your Mind

We want to know. What would make you change your mind about a Canadian business financing strategy or policy that works for 80% of all companies in Canada? We’re talking about leasing for business... commercial equipment financing for small business or large corporations.

Lets explore some reasons and advantages by the way, that would allow you to discover or re discover equipment finance in the Canadian marketplace.

Traditionally it comes down to your money, or theirs. Your money is of course the equity or operating funds that you have in the company already. ‘Theirs ' is of course funds you borrow. When it comes to acquiring a commercial asset of any type, from photocopier, computers, plant equipment, or corporate jets it's going to always come down to that proverbial lease or buy situation.

However, like and business owner or financial manager you have criteria to fulfill when it comes down to that finance decision. And boy has commercial equipment financing in Canada changed over the years. It has become a viable finance tool providing competitive rates and structures to every size of firm in Canada, from a 1 person start up to firms the size of General Motors.

There are a number of fundamental reasons why leasing for business makes sense - one good one is simply that it becomes in effect a partnership with your lessor lease firm, who typically have a lot of expertise in asset acquisition and disposition. (Don’t forget that all leases have an end of term, and that’s where some sophisticated help on purchasing, refinancing, or disposing of the asset can really help.

But do the key tools that equipment financing provide you with always make sense for your firm. We are fairly sure they more often than not will, but let’s examine some of those key features and benefits.

Not the lease of which is of course the concept of 100% financing .Oh yes, on occasion this might mean a down payment or a security deposit, etc but in general you are being offered a commercial equipment financing mechanism that will take care of 100% of your asset acquisition. But that’s not it... many of what the industry calls soft costs can also be bundled into this same financing solution. Typically some of these costs are installation, shipment, consulting or training, etc.

We spoke of all types of assets that can be financed. Technological type assets are the ones that make the most sense to finance - we're talking items such as computers or telecom equipment, which tend to be larger in size, and also subject to technological obsolescence.

By budgeting your cash flow today at a fixed rate, and estimating the useful life of your asset you are creating a perfect hedge against the risk of assets depreciating, becoming obsolescent, etc. In effect you've created a transaction whereby you have effectively transferred the risk of asset deprecation to your lease firm.

Other key benefits of leasing for business include management of cash flow and working capital, and if you utilize an off balance sheet operating lease both payments can be lowered and flexibility enhanced.

So... have we changed your mind? We hope so; at least we're sure we have given you some ' food for thought ' on a commercial equipment financing philosophy that should make sense for your firm.
Want to know more in what can sometimes be a complex business asset financing acquisition? Seek and speak to a trusted, credible, and experienced Canadian business financing advisor who can give you peace of mind in business asset acquisition.

Reasons for Leasing for Business - Why Equipment Financing Works!

Reasons... and facts. That’s what Canadian business owners are looking for when looking for equipment financing. And quite frankly leasing for business has never been more popular, and made more sense.

Let's examine some of those reasons and facts to ensure you are well informed when you are looking to acquire capital assets for your business. And by the way, capital assets sure is a broad term, because it covers technology , plant equipment, business equipment, rolling stock, even your corporate jet .. (We know ' you wish ...').

So why are hundreds of millions of dollars, probably billions of dollars leased in Canada every year under an equipment financing strategy? It all comes down to a common saying among leasing people, which is simply that you generate profits and sales by using assets, not owning or paying outright for them .

The good news about leasing for business is that the key word is flexibility - credit approvals are more flexible, cash flows can easily be structured to meet your needs, and various balance sheet and tax benefits accrue to companies who lease.

We find in talking to clients looking for innovative lease financing options that we can talk all we want about off balance sheet, tax benefits, depreciations strategies, etc - but, at the end of the day they are simply concerned with getting credit approval and conserving cash. Otherwise of course these assets must be purchased out of bank lines that have already been tightened by your bank.

When we talk to companies that are using effective equipment financing strategies we find, more often than not, that they are simply ahead of their competition in innovative assets that drive revenues and profits. That’s simply of course because there is no huge outlay of capital when acquiring these assets, which more likely than not are depreciating anyway.

Don’t forget also that taxes are paid as part of your monthly installment when are leasing for business assets - a classic working capital conservation strategy. The bottom line is that your firm can grow when you have the ability to conserve cash flow and use it for operating needs and further re investment.

It sometime is difficult for business owners to determine who the right leasing partner is. There are hundreds of firms, many are in fact not Canadian, and all firms have different credit, deal size, and interest rate policies related to how transactions are structured. If you are looking for a quick way to navigate the entire equipment financing marketplace in Canada speak to a trusted, credible and experienced Canadian business financing advisor who will assist you in completing a transaction that makes sense and achieves the approval and benefits your firm is looking for.
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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/equipment_financing_leasing_for_business.html