Technology Leasing Companies - Canada – Inside Info On Computer & Software Finance

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Leasing Technology Assets In Canada

Information on the benefits and pitfalls of technology leasing in Canada. Which companies offer financing of computer, software, telecom and other assets . What leases work best in hi tech?

If cash Flow and capital were no object the acquiring of technology assets wouldn’t be as much of a challenge as one would think. Canadian business owners and financial managers like to be on ' the inside ' when it comes to knowledge and competitive information - it’s just natural.

So we want you to be on the ' inside ' when it comes to technology leasing and financing . What companies should you be working with when it comes to the financing of telecom, computer and software assets. We want you to know some of the tricks (can we call them that) that the big boys use.


Technology leasing has some different economics when it comes to financing. Some very powerful ................ are in play. Your financial commitment to acquiring these types of assets is generally large relative to your overall capital budget; these assets tend to depreciate rapidly, and prices seem to be going down all the time... so when should you purchase? Boy, those are some interesting dynamics!


At the same time the benefits you receive from the use of tech assets are huge, not the least of which is your competitive position in your industry. So let's talk about overcoming some of those tech challenges


Many business owners are not aware that you can finance ' software ', either on a stand alone basis, or in conjunction with a hardware solution. But there is a key differentiator here, which is that it is much easier to lease application software as opposed to the software you have developed. But larger, creditworthy companies can in fact get financing for software development on a project by project basis.


One of the interesting ways that the lessor protects himself in these situations is to ensure they have access to and rights to the source code you are developing. How is that handled, usually via an escrow agent who maintains updated access to the source code, with the provision that should the lease default the lessor has access and rights to that source code .



Term. It's all about ' term ' when it comes to technology leasing of computer and software. Leasing companies in general prefer a 3 year term for tech assets. Does that make sense? We think it does... if only for the fact that the dramatic changes in hardware and applications render anything older than three years as somwhat obsolete when it comes to technological change. So the bottom line is to be prepared to defend your need for a 4 or 5 year lease term when it comes to a depreciating asset such as tech.


It should be no secret to Canadian business that technology leasing is secured by the lessor in the same manner as any other assets, a PPSA ( Personal Property Security ACT) registration is made against those leased assets; registering the lessor collateral in the hardware and software described in your equipment list and configuration .


If there is one ultra-important thing you should consider when looking at companies that will assist you in technology leasing of computer, software, and telecom assets it’s probably the type of lease that you enter into. Broadly speaking in Canada



You need to only focus on two types of leases - capital and operating. Is there an easy way to immediately pick which one is the most applicable to your need? It's not as challenging as you think, think simply in terms of the lease to own (that’s capital) and ' lease to use ' (that’s operating). Those two leases, capital and operating, dominate the Canadian marketplace.


Those big boys we referred to, major corporations tend to use operating leases for some sophisticated reasons such as balance sheet ratios, cash flow coverage covenants, return on equity goals, etc. If you are a small or medium-sized business these same operating leases simply could provide you with two things, a lower monthly payment, and some great flexibility at the end of the lease term.


In summary, there are some major differences in dealing with technology leasing as opposed to other types of assets that might be in your budget. Many of the ' tricks' those larger corporations use are available to the small and medium-size business owner. Understanding how these assets can be financed is important for any sized business. For extra expert help consider talking to a trusted, credible and experienced Canadian business financing and leasing advisor who can assist you in ensuring maximum benefits and flexibility.

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

Click here for 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 .

' 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.

On Top Of Trends In Technology Leasing And Business Equipment Financing ? Smart Choices To Increase Canadian Lease Benefits

Successfully Managing Your Leased Asset Strategies


Information on technology and business equipment leasing in Canada . Benefit from asset acquisition via a capital or operating lease .




The ability to stay ' on top ' of what’s happening in technology leasing or financing your other business equipment needs gives the Canadian business owner two things: Options, and of course benefits!

The concept of ' change ' drives a lot of technology acquisition and finance decisions. Business owners and financial managers don't even seem to think twice these days about whether they need to acquire computers, telecom, software, and other ' tech ' type assets the reality is that those improvements to your competitiveness and infrastructure cost a lot!

And let's not forget to mention that new concepts such as Cloud computing, virtual, and grid computing, etc simply bring new burdens of decision making for the owner, finance manager, and IT manager in any small to medium size corporation in Canada. We're somewhat leaving out the larger corporation given they have the assets and tech savvy to wrestle down these challenges in a much easier fashion.

So how do you fund these acquisitions ... the goal seems pretty simple - buying the best and right products and services and paying or financing them in the best manner possible. Easier said than done.

When you think about it what you want to do is not that complicated conceptually - its simply about picking the right financing option and ensuring that the cash outflows, structures, and tax/accounting type benefits match what works for your firm . Again, we know what you're thinking ... easier said than done, right?

Don't forget also that in a perfect world you want to match benefits of your financed assets with cash outflows. That’s why the majority of tech assets are leased; business doesn't want to pay up front and reap benefits over time down the road.

There is a substantial amount of flexibility in the term, or amortization of tech financed assets. Typical terms available range from 2-5 years ... but we always caution business owners that long terms , while they lower the monthly payments, come with a cost re replacement, functionality, obsolescence, reduction in competitiveness, etc. So bottom line, watch the ' term'!!

While for many assets the business owner/ manager is always focused on the implicit interest rate in the least we caution lessees do not overly focus on the rate as opposed to the term, structure and type of lease, conditions , and the all important end of term decision - namely, return, replace, or upgrade .

And getting back to that ' interest rate ' issue, the reality is that in the current 2012 competitive leasing equipment marketplace clients have access to some of the best terms, rates, and structures within the industry, as the lease finance folks are busier than ever, and very competitive . Lease financing is available from bank subsidiaries, U.S. lessors with Canadian representation, and independently owned Canadian firms that service transactions in the small, mid, and large ticket asset area.

One word of caution though, not all firms are both experienced or even have an appetite for tech type assets such as computers, software, cloud computing, etc . It might be advisable to seek the service of a trusted, credible and experienced Canadian business financing advisor to wade through the lease industry ' jungle' on your behalf .

The bottom line - focus on type of lease, and working with the right party. Your ability to manage and finance tech assets will become much easier and give the business owner and manager the feeling that invested and spent funds for business equipment assets are achieving the benefits your firm deserves.

7 PARK AVENUE FINANCIAL
CANADIAN TECHNOLOGY FINANCING AND LEASING 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/technology_leasing_business_equipment_lease.html

What’s Your IT Finance IQ? Technology Leasing And IT Computer Software Financing In Canada

Information on the IT Finance decision when it comes to technology leasing and financing of a computer system, software, and other tech assets such as software , servers, etc.


Here’s a free knowledge upgrade !



IT Finance and Technology Leasing. Whether you consider the acquisition of a computer system or other tech gear a cost or an investment it's important to know your ' INTELLIGENT QUOTIENT ' ( IQ) on what for many firms is a very significant either ongoing or one time expense.

There has never been a time when a competitive edge often is aided by a tech investment your company makes or needs. In the language of the people it’s all about the ' bang for the buck ‘, getting the most out of the minimum spend.

That’s where finance and leasing options around computer, software, and telecom type needs becomes a critical aspect of your overall decision. It's all about benefits you can achieve from the flexibility of a (proper) finance solution.

Naturally the benefits of a tech investment arent just financial, as we noted they are both operational in nature and in some cases might be a key part of your overall competitive strategy.

Numerous North American stats suggest that the majority of IT Computer solutions end up with a financing package attached to them. That is either driven by the vendor or your own expertise in the matter.

So what are those key reasons that Canadian firms choose to finance their technology. One major one is simply the fact that technology today seems to be a moving target, and your firm is often concerned with the ability to acquire the newest and the best at the lowest cost. A real irony in the industry is that in many cases cost goes down and benefits go up, not visa versa.

Secondly, a prudent busines owner, IT manager, and of course the finance manager want to be able to match benefits achieved over the long term with cash outflows. Yesterday we got a call from a corporate treasurer who had just found out his operational staff had ordered a 1.6 Million dollar ' simulator ' and delivery was forthcoming. (We’re of course assuming the operational staff had the authority to order that much?!). The Treasurers' challenge? How to finance and pay for the system !But our point is that based on a proper financial package of information that type of problem can be fixed in a matter of a couple of days via a lease financing approval .

Whether your firm is a medium sized or larger corporation it probably has a budget around the technology spend. Lease financing and proper structuring of a finance solution allows you to acquire and manage assets within that budget. For the SME business owner , whether there’s is a formal budget or not it always more often than not comes down to cash flow management .

In certain cases some firms certainly have the ability, or need to purchase technology outright. Proper use of any type of lease vs. buy analysis will usually guide the business owner, CIO, or manager to the right decsion.That when the investment should allow you to achieve competitive and operational efficiencies.

Never underestimate the power of a financing / leasing solution when it comes to IT and technology financing. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in making the right financing decision around what arguably is one of your companies most important and asset acquisitions.

7 PARK AVENUE FINANCIAL
CANADIAN IT FINANCING AND LEASING 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/it_finance_technology_leasing_financing_computer.html

Expert Cloud Financing Via Technology Leasing - Canadian IT Computing Fresh Perspectives

New Insights Into Technology Finance For Canadian Firms


Information on technology leasing benefits for Canadian firms considering cloud financing and IT computing strategies for growth and financial benefits.





Wow. Cloud financing and IT Computing. Seems a little bit difficult to understand sometimes, right? However, the more we thought about it the more it made sense; and we think we actually were talking about these stuff years before others. That’s because one of the best analogies we've used for over 15 years perhaps revolves around the light bulb.

Let’s explain. When you're looking to purchase electricity is your main concern owning the light bulb? We don’t think so, and talk about a depreciating asset!

So that's cloud computing in a layman’s nutshell, the ability to access it computing resources as a service.

And it always comes back to time and money right? Canadian business owners and financial mangers get the fact that saving thousands of dollars via technology leasing makes sense - and don’t forget about your ability to divert time and resources into that one miscellaneous issue, running your business!

So that’s cloud financing... using the power of the internet to use software and hardware... that you need... when you need it.

Technology leasing has always made sense, because computing assets are costly, and, oh yes, they seem to change once a week or so!

So let’s examine some of those significant aspects to cloud financing via tech lease strategies.

More often than not its always about the money, and the fact that you can leverage a large amount of hardware and software resources on a much more modest investment than outright purchase is a great reason to take advantage of ' the cloud'

Financial benefits of a tech finance solution to the cloud are pretty fundamental, less power and space requirements and the fact that your IT budgets won’t be continually faced with hardware and software upgrade cost requirements.

Canadian business owners, financial manager and IT mangers would prefer to pay for what they use, and not what they are told they might need. So lower monthly payments via a tech finance lease make total sense.

It's of course not always possible to determine what those future tech finance requirements might be, so Thats where scalability comes in, your ability to add computing power, additional software licenses for your users, etc.

We don’t even want to think of the time, planning, and budget approvals involved in a lot of aspects of IT computing and technology leasing strategies. Safe to say that the deployment of these decisions happens much faster in a cloud environment. And staff can of course access these offerings anywhere because... well, it’s the internet!

The bottom line is that cloud financing has great attractiveness to Canadian firms. Less up front investment, the ability to expense the transaction in the manner of an operating lease expense and the classic upgrade abilities of technology leasing make cloud financing a ' must check into ' for almost all Canadian firms we think.

Speak to an experienced, trusted, and credible technology financing Canadian business financing advisor who can structure a tech lease offering that makes sense for your firm.






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/technology_leasing_cloud_financing_it_computing.html

Technology Leasing Companies -Canada – Inside Info On Computer & Software Finance

If cash Flow and capital were no object the acquiring of technology assets wouldn’t be as much of a challenge as one would think. Canadian business owners and financial managers like to be on ' the inside ' when it comes to knowledge and competitive information - it’s just natural.

So we want you to be on the ' inside ' when it comes to technology leasing and financing. What companies should you be working with when it comes to financing of telecom, computer and software assets. We want you to know some of the tricks (can we call them that) that the big boys use.

Technology leasing has some different economics when it comes to financing. Some very powerful trends are in play. Is the trend your friend ? We will let you decide!

Your financial commitment to acquiring these types of assets is generally large relative to your overall capital budget; these assets tend to depreciate rapidly, and prices seem to be going down all the time... so when should you purchase? Boy, those are some interesting dynamics!

At the same time the benefits you receive from the use of tech assets are huge, not the least of which is your competitive position in your industry. So let's talk about overcoming some of those tech challenges

Many business owners are not aware that you can finance ' software ', either on a stand alone basis, or in conjunction with a hardware solution. But there is a key differentiator here, which is that it is much easier to lease application software as opposed to software you have developed. But larger, credit worthy companies can in fact get financing for software development on a project by project basis.

One of the interesting ways that the lessor protects himself in these situations is to ensure they have access to and rights to the source code you are developing. How is that handled, usually via an escrow agent who maintains updated access to the source code , with the provision that should the lease default the lessor has access and rights to that source code .


Term. It's all about ' term ' when it comes to technology leasing of computer and software. Leasing companies in general prefer a 3 year term for tech assets. Does that make sense? We think it does... if only for the fact that the dramatic changes in hardware and applications render anything older than three years as somewhat obsolete when it comes to technological change. So the bottom line is to be prepared to defend your need for a 4 or 5 year lease term when it comes to a depreciating asset such as tech.

It should be no secret to Canadian business that technology leasing is secured by the lessor in the same manner as any other assets , a PPSA ( Personal Property Security ACT) registration is made against those leased assets; registering the lessor collateral in the hardware and software described in your equipment list and configuration .

If there is one ultra important thing you should consider when looking at companies that will assist you in technology leasing of computer, software, and telecom assets it’s probably the type of lease that you enter into. Broadly speaking in Canada
you need to only focus on two types of leases - capital and operating. Is there an easy way to immediately pick which one is the most applicable to your need? It's not as challenging as you think, think simply in terms of lease to own (that’s capital) and ' lease to use ' (that’s operating). Those two leases, capital and operating, dominate the Canadian marketplace.

Those big boys we referred to, major corporations tend to use operating leases for some sophisticated reasons such as balance sheet ratios, cash flow coverage covenants, return on equity goals, etc. If you are a small or medium sized business these same operating leases simply could provide you with two things, a lower monthly payment, and some great flexibility at the end of the lease term.

In summary, there are some major differences in dealing with technology leasing as opposed to other types of assets that might be in your budget. Many of the ' tricks' those larger corporations use are available to the small and medium size business owner. Understanding how these assets can be financed is important for any sized business. For extra expert help consider talking to a trusted, credible and experienced Canadian business financing and leasing advisor who can assist you in ensuring maximum benefits and flexibility.



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/technology_leasing_companies_computer_software.html