WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Showing posts with label technology. Show all posts
Showing posts with label technology. Show all posts

Saturday, September 8, 2012

Is There A Difference Between Truck Leasing And ‘ IT’ Leasing ? An Equipment And Technology Finance Surprise ?






Is there a major difference in which assets can be financed?

Information on leasing and equipment finance . Do the same benefits apply to truck Leases and IT technology financing ? Business owners may be surprised!




At first brush is the answer ' Are we crazy?' How could there similarities between financing a transportation asset or entering into an equipment finance leasing transaction for new ' IT ' assets?

We actually think you will be surprised at some of the similarities which clearly brings home the point that various asset categories (whether it is a truck lease or for a sophisticated computer infrastructure ) lend themselves to a solid finance vehicle. And excuse the pun on vehicle!

Whether your Canadian firm is a start up or a ' mature ' firm (are start ups immature?) the need to access capital to either enhance the truck fleet or add hardware and software to your computing power remains the same.

Both assets , using today’s example are depreciating assets - many will make the case that truck and transport assets depreciate much more slowly than IT type assets, which seems to lose value very quickly if only for the reason that technology seems to change about every 2.5 minutes these days!

So does lease finance have an answer to both those asset classes? It does, and it's all about picking one of two leases that fit what the industry calls your ' end of term' strategy. So it might be a more sophisticated operating lease for your computer IT solution, and it might be a long term capital lease ( a lease to own ) for your truck finance.

Naturally you can buy depreciating assets, no one is forcing you to choose leasing in a ' lease vs. buy ' analysis... but the reality is that unless your cost of capital significantly exceeds a lease total cost that financing is more often than not the right choice. And don't get us started on the very high cost of equity capital which is a whole new kettle of fish.

Naturally it makes sense in any business financing strategy that your feel the cash flow required to pay the lease can be met even when things are tough.

Companies use assets to generate value, so whether its a transport truck asset to deliver your products or perhaps a new IT computer / software system to make your operations more efficient and competitive.... a lease finance strategy , a proper one by the way, simple accelerates your ability to fund new assets and the growth of your firm .

The proper lease strategy will allow you to both replenish and upgrade assets, or make key decisions around what will happen to the asset at the end of term. In today’s example for instance we could replace a truck with a new one, keeping our monthly payment the same ... of we could return IT assets to our vendor for an upgrade of newer technology... with... you guessed it, the payment remaining the same.





An interesting side point is how valuation decisions are made on assets such as trucks or computers during and at the end of lease. In the real world (that’s where we work) it comes down to best inputs you can provide, along with value opinions that might come from an appraiser, your experienced equipment finance company, or research on the internet at best values.

Hopefully we have made our point - whether it’s financing rolling stock type assets where key factors such as physical condition, safety and maintenance come into play... or the other end of the spectrum , IT type assets that of often require large capital outlays around changing technology .




Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in determining the value of equipment finance, whether it’s your trucks... or computers!



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/leasing_equipment_finance_truck_it_technology.html


Tuesday, December 20, 2011

Caution - Danger Ahead ! IT Finance And Computer Leasing . Technology Financing Tips




Good Information Spells The Difference In Technology Financing

Information on IT Finance. Technology Financing And Computer Leasing Covered!







It's probably just us, but we think there’s no aspect of equipment financing in Canada where one small piece of info could cost you, or make you thousands of dollars. Let's cover off some IT Financing (IT = Information technology) basics. All of a sudden that cautionary road sign up ahead wont be as much of a concern.

Although the actual benefits and economics of any lease should always be considered it just seems more of a need when we are talking about IT finance for your infrastructure, computer, and even telecom needs. The challenge is actually pretty basic, matching a financial solution to those fast paced (and expensive) technology needs.

So know what you will face, what decisions you need to make now, and during and at the end of your lease financing is, well, critical!

The reality of tech financing is you have to be pretty sharp and well informed in several key areas - just knowing those areas is important. They include documentation, structure, as well as your rights and obligations in certain lease arrangements.

Hardware makes up probably the majority of dollars in computer leasing transactions. Whether it be telecom, server, pc, laptop, notebook, tablets, or even ' cloud ' type solutions that’s where the buck seem to be. Canadian business owners can finance hardware separately through 1 of the 2 lease vehicles available, or your transaction can be combined with soft costs such as application software, installation, etc.

Where hardware financing gets somewhat tricky and challenging is when it comes down to operating leases, residual values, disposition of equipment at end of term, etc.

The majority of Canadian business has financed larger computer leasing and it finance technology projects via operating leases. However, the next several years major changes in international accounting rules might well render a lot of the benefits of operating leases less effective, so it’s critical to stay on top of this development in accounting.

Although larger more sophisticated Canadian businesses have been utilizing software financing for years many smaller and medium sized businesses sometimes aren’t even aware soft costs such as software can be financed and bundled into your IT finance transactions. A good tip here is to ensure you understand how the cost of software is priced and blended into your entire transaction. It is most often amortized in full and sometimes attracts higher rates.

Medium sized and larger corporations are encouraged to take advantage of a Master Lease arrangement. A one time negotiation of terms, rights and obligations is going to save you time and dollars in the years ahead, along with the ease of simply adding on additional schedules of assets to be financed when you need them.

A common misstep in computer leasing is the failure of Canadian business to separate the financing from the manufacturer of the equipment, especially when it comes to warranties, service, and the right to use. So be careful in addressing issues separate, with the right party.

The largest benefits and the most risk in IT finance come from what happens during at end the end of a technology leasing transaction. Investigate and understand thoroughly your rights to terminate, upgrade, or renew at the end of the term. If you have entered into a capital ' lease to own' type scenario monitor your purchase options at the end of term.

Is there anything more ' mission critical ' than technology, computers, and telecom assets in Canadian business? Debatable, but doubtful don’t you think? Speak to a trusted, credible and experienced Canadian business financing advisor for your IT finance needs. All of a sudden that ‘Danger Ahead’ becomes manageable.




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/it_finance_technology_computer_leasing.html