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Equipment Leasing – Can You Imagine Financing Assets Without This Asset Finance Strategy?
OVERVIEW – Information on equipment financing solutions in Canada. The ability to finance new and used assets for your business helps companies grow while conserving cash
Is there any asset that can't be financed? For years we have half jokingly told clients that anything can be financed, and quite frankly, based on your firms overall credit structure and quality, we still believe that to be very true .
Many business owners don't often realize that even 'intangible 'assets can be financed, such as software, installation costs, maintenance contracts for your financed asset, etc. Those additional charges, when not financed, can put a real dent in your cash flow!
The whole issue of equipment leasing for Canadian asset acquisitions quite frankly revolves around the ' right ' lease, and, as importantly, your leasing firm partnership. Properly structured leases create a win / win scenario for all parties to the lease - namely the equipment vendor or manufacturer, your firm, and of course the lease finance company.
We are often somewhat disappointed when clients are only focusing on 'rate ', because in a large number of cases overall lease amount approval, structure of lease, and type of lease chosen have significantly more importance that the 'rate '.
'What's my rate 'is not an effective way, we believe, to enter into a lease negotiation. Naturally having said that, a rate must be commensurate with your overall credit quality - as credit quality, combined with the asset collateral, drives the final rate decision.
A quick recap of the generic benefits of leasing should emphasize the advantages of this type of asset acquisition financing. Those benefits are:
1.Ability to acquire equipment while minimizing your cash outflow for asset purchases
2.Cash flows match the benefits and useful life of the asset you are acquiring
3.Potential tax and balance sheet advantages
4.Ability to upgrade equipment and stay ahead of the competitive curve based on your ability to acquire items that you might not necessarily be able to purchase on a cash basis
Equipment leasing often tends to also be 100% financing - that's a great way to maximize cash flow , and , as we noted, many Canadian business owners and financial managers are often surprised to know that lease financing can include tangibles, as well as those maintenance and upgrade costs depending on the asset you are financing ; Hint - Think computers!
There are a number of tools that allow you to evaluate lease financing options, one of which is a 'lease calculator 'or' lease vs. buy calculator'. These are widely found on the internet.
We strongly recommend that you utilize the services of a lease financing expert who has credibility and experience. That will translate into your firm capitalizing on one of Canada's great alternative financing strategies. Seek out and speak to a trusted, credible lease financing advisor today.
7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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 .
Direct Line = 416 319 5769
Office = 905 829 2653
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
