Rolling Stock Financing And Leasing Heavy Trucks In Canada : Taking Advantage Of The Right Truck Lease

Transportation And Rolling Stock Financing Explained

OVERVIEW – Information on rolling stock financing in Canada. Leasing new or used heavy trucks is specialized finance. Here’s truck lease principles 101





Rolling stock financing in Canada, in particular heavy trucks, transport, trailers, etc requires a specialized focus and knowledge. How can the business owner/ manager, or truck operator take advantage of the right methods to finance their asset? Let's dig in.

Knowing the techniques involved in truck finance puts you well ahead of the game. Because of the high ' residual value ' of these types of vehicles the actual economic useful life as well as the wear and obsolescence issue is key in any truck / rolling stock financing.

While a typical lease term for many assets is 2-3 years most heavy trucks have significantly longer amortizations - in some cases up to 7 years for the right asset. Larger truck and transportation firms might also want to consider ' operating leases' on their vehicles - this allows the business owner/ manager or owner/operator of the vehicle to address capacity issues in their company or business.

Knowledgeable maintenance is a key part of rolling stock/transport financing. Having the ability to provide key data on original purchase amount, mileage, key repairs etc is critical and will allow you to maximize full financing value - especially when it comes to used assets.

For acquisition and future financing of trucks maintenance is absolutely critical. In most cases a lessor or lender will often finance major repairs to the vehicle/ vehicles in question to maintain value. It goes without saying, (but we will say it!) that proper insurance documentation is always required, naming the lessor as a party to the insurance policy.

Licensing and registration must also of course properly be documented re ownership, bills of sale,

The key parts of a truck lease are not really fundamentally that different from any other asset you might wish to finance. Those factors include value of the asset, credit worthiness of the borrower/operator, and, as we stated, the estimated future value of the asset in question.

Market financing rates vary in this asset category. They will depend on the type of firm you are dealing with, their ' credit appetite ' and your ability to produce a basic loan package application that covers off the fundamentals.

Lessors and other lenders collateralize their financings via a PPSA registration (Personal Property Security Act) and that varies a bit by province. It is simply a central finance filing system used by lenders in Canada, and gives priority to the lender over the asset they are financing, in this case truck / rolling stock, trailers, etc.

Note that in some cases some lessors and lenders actually use GPS devices on their financed trucks to track location, usage, etc

If you're looking for proper leasing of heavy trucks, trailers, etc seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in your truck lease requirements.




Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN TRUCK LEASING EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
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


' Canadian Business Financing With The Intelligent Use Of Experience '





























Stan Prokop

A Lease Finance Company Success Story : Identify The Right Equipment Financing Companies

Can You Name The 6 Sources Of Lease Financing In Canada

OVERVIEW – Information on sources of lease finance in Canada . Identifying the right equipment financing companies saves time , money and provides you with the best rates and terms for asset finance needs

Equipment financing in Canada; as a Canadian business owner or financial manager can you properly identify the best lease finance company solution for your asset acquisition requirements? Making the right choice and decision will make your firm a ' success story ' when it comes to asset finance needs. Let's dig in.

There are actually 6 different types of lease financing sources in Canada. Which one if right for you depends on a couple of key factors -

Size of the asset / financing in $

Your overall credit quality

The nature of the asset


Although there are different asset finance choices when it comes to who you will deal with it's important to note that your process will relatively always be the same.

That process includes negotiating pricing, terms and lease documentation. In transactions less than 100k quite often a simple one or two page lease document suffices. For larger transactions you might be required to address more complex documentation but the industry prides itself on keeping things simple.

Other issues you have to cover off in a ' normal ' process include determining how and when you vendor/supplier will be paid - in most typical situations the lease finance company pays your supplier directly.

Remember that in any lease transaction your payments will begin when you have accepted the asset as being delivered/operable, etc. Remember also that while most clients we meet focus on starting a lease it's critical to focus on and understand end of term options. They might include upgrading, returning, disposal, etc.

So, those 6 equipment financing sources?!

They are commercial leasing companies, captive financial firms that are aligned with a particular mfr, your vendor itself (some vendors will provide asset financing of their products), insurance companies, banks, and finally a lease advisor who is properly aligned to ensure you select the right lease entity.

Which solution is best for your asset needs? The answer lies in issues we've discussed already, re $ value, your firms ability to demonstrate commercial credit worthiness, and the type of asset you are financing.

Remember that all 6 different solutions have different focuses re geography serviced, deal size appetite, types of assets they prefer to finance, and credit strength preferences. When it comes to credit quality almost any asset can be financed - that flexibility comes from the ability to alter terms, get a down payment, or address additional collateral requirements.

A proven way to choose the right lease company is to ensure you're working with a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
- ensuring your asset finance needs become a true Success Story.



Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT LEASE & FINANCING EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
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
























Stan Prokop

Financing Sources In Canada : Little Known Ways To Use Capital Leasing And The Finance Lease

Looking For Evidence That Equipment Leasing Is For Your Company ?

OVERVIEW – Information on financing sources in Canada . Capital Leasing Via The Finance Lease Is A Solid Solution For Asset Financing Needs

Financing sources in Canada come in different categories. The finance lease is simply one of the best tools to maximize capital leasing. But does every business owner/financial manager know how to maximize this method of asset financing? Let's dig in.

We're told you can't fight a trend, and no method of financing assets has grown as equipment financing has over the last several years. North American figures suggest an overall 10%+ growth.

So whether that’s a ' micro ticket ' LEASE ' for items under 25k, or ' small ticket ' ranging from 25k to 100k there’s clear proof that whether its a 2k photocopier , or a multi million dollar piece of plant machinery or office technology its safe to say the evidence suggest this is one of your best methods to acquire assets .

The issues of ' cash flow ' and ' alternate sources of borrowing ' should be high on the list of key ' evidence ' analyzed by the business borrower.

What in fact are the main types of assets that consistently are financed on a day to day basis by everyone, including your competitors! That ' hit list ' includes:

Rolling Stock

Technology

Construction and Plant Floor Equipment

Medical equipment

Business owners/managers like capital leasing because credit approval on terms they can live with is much quicker than that offered by bank and other ' term lenders'.

While the true ' finance lease ' finances 100% of your asset needs on a ' lease to own ' basis don’t forget also that many firms still take advantage of operating leases. Operating lease characteristics include the ability to use but not own an asset, typically shorter lease terms ( 2-3 years are common amortizations ) , and attractive end of term options such as the ability to upgrade, purchase if desired, or return the asset .

We also add as a short footnote that two other aspects of equipment financing should not be overlooked - they are the sale leaseback of assets you already own, as well as the ability to collateralize owned assets under a short bridge loan.

Capital leasing often satisfies the true objectives of the business owner and offers maximum flexibility as a ' financing tool’

Looking for more ' evidence ' that the finance lease is right for your company? That includes:

Hedging asset life against inflation

The ability to pick terms from 2-7 years

Maximizing cash flow

Capital leasing rarely comes with restrictive borrowing covenants

Working through budget and cost restrictions

If you're looking for ways to use Capital lease financing as a tool to run and grow your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can provide ' the evidence '!











Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN FINANCE LEASE EXPERTISE



Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

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


' Canadian Business Financing With The Intelligent Use Of Experience '













Stan Prokop

Alternative Business Financing In Canada : The Art Of Loan Alternatives

Capable Of Changing Your Mind On Alternative Financing Techniques ?


Information on alternative business financing in Canada . What loan alternatives are available to Canadian business when traditional solutions can’t be accessed, aren’t enough , or don’t work

Loan alternatives in Canada come in a variety of forms in Canada. 'Alternative business financing ' is a term we've often thought a bit unusual on occasion, if only for the fact that commonly used business finance alternatives are in many cases tens of years old, and in some cases thousands ! For your firm to be successful in accessing the capital it needs it’s a question of an ‘art’ and a ' science '. Let's dig in.


Business lending in Canada took a major step back in the recession of 2008. Business owners and financial managers are told today that we're back to an abundance of capital - however it never seems to be for them!

It's tough enough to grow your business in a good economy let along one that doesn't provide the right loan alternatives. What then is traditional financing and what's alternative? ask our clients. The simple answer is that it’s financing solutions outside of Canadian chartered banks. The solutions provide do the same thing - they provide cash flow, capital, and loans, but rates, terms, structures, and day to day mechanics are often different.

Stats vary from country to country of course but top experts say that in many cases almost 25% of businesses that apply for bank credit are declined. Typical requests from the bank come in two categories - term loans and revolving credit facilities.

‘ASSET BASED FINANCE ' is the general category for putting together all the different solutions for asset and cash flow financing. These solutions include:

A/R Financing (Factoring) (Our recommendation for clients here is CONFIDENTIAL RECEIVABLE FINANCE

Inventory Financing

Tax Credit Finance

Asset based ABL lines of credit

Purchase Order Financing

Sale Leasebacks /Bridge Loans
Working Capital Term Loans / Mezzanine unsecured cash flow loans

Crowd funding/ Royalty finance techniques

Our first example, A/R non bank financing has only been around a thousand years or so... right around the time the Dead Sea was just only getting sick!

That's our tongue in cheek comment on why ' Alternative ' is in fact more common than most people think. This single alternative form of cash flow finance has a strong appeal to thousands of business owners/financial managers because it immediately ' cash flows ‘your sales. The trick is to pick the right facility at rates, terms and day to day mechanics that makes sense.

While there is no doubt that banks still provide in Canada the huge majority of ' Traditional ' financing the newer forms of capital access are in many cases complimentary to the bank - but essentially are often the real alternative when bank capital can't be accessed.

More and more accountants, lawyers and business peers are recommending loan alternatives outside the bank structure. This pool of capital is large and diverse. In our experience many key financial problems are in fact solved by non traditional finance - and some of the most successful companies in Canada and the world were in fact started by owners and managers who went looking outside the traditional landscape.

If you want to know how Canadian business financing has evolved, and how to navigate the seemingly ' maze ' of financial solutions
seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you to explore both the art and science of loan alternatives.




Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING ALTERNATIVES EXPERTISE









Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
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


' Canadian Business Financing With The Intelligent Use Of Experience '

Canada Small Business Financing Loans : Smart Strategies For Accessing The Government SBL Loan

SBL Gov’t ‘Small Business Loans ‘ Are Your Bridge To Somewhere

OVERVIEW – Information on government of Canada small business financing loans . This financing is very appropriate for start ups, franchising, buying a business , or for firms in the SME sector requiring equipment and leasehold capital

Canada Small Business Financing loans are government guaranteed loans that assist any Canadian business (including start ups and franchises) to acquire financing for equipment and leaseholds. For many owners/managers these loans, commonly called an ' SBL ' are a ' bridge ' to starting and or growing a company. Let's dig in.

If there is one negative aspect to accessing SBL capital it's the perception that many applicants have that the process is long and complicated. In fact that is not necessarily the case, but it certainly is if you are unprepared and don't know who to talk to and work with.

Personal guarantees are part of any business financing in the SME sector. However the Govt small business loan requires only a 25% personal guarantee, which is much more attractive to most entrepreneurs. The caveat here is that the guarantee you do provide on the loan must be backed up with a reasonable personal credit score and some personal equity commensurate with the amount you are borrowing. Here things like ' home ownership 'help out a lot.

The good news about the actual rates, structure, terms, and length (amortization) of the loan is that they are set by the government and are cast in stone, so to speak. So Canadian banks that offer the loan don't have any flexibility in raising rates or changing credit enhancements. That being said though it's our own experience that different banks have different attitudes toward the program, and it’s critical to find a banker that’s ' on side ' with this method of financing. (Sorry, we can't provide names to protect the innocent - but call us!)

As we have inferred Canadian chartered banks run/administer the program for Industry Canada. So contrary to the belief of some, there is never any direct involvement with the government - they are simply sponsors and guarantors of the program. Each year in Canada approx 8000 businesses apply and are approved under the program - which lends anywhere up to $500,000.00 for each loan.

While many businesses in the SME (small to medium enterprise) sector mistakenly focus on accessing capital from personal resources, friends and family, angels/VC's etc they more often than not find that there are significant negative aspects to those sources of capital. Canada small business financing government loans are often a more realistic fast track to capital.

When SBL loans arent feasible don’t forget that numerous other traditional and alternative financing vehicles are available to you - They include:

A/R financing

Inventory finance

Working capital term loans

Non bank asset based business lines of credit

SR&ED Tax credit financing

Equipment Leasing/ Sale Leasebacks/Bridge Loans

For ' smart ' strategies to the ' bridge to somewhere' as it relates to growing or starting a business 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 accessing the right capital at the right time.





Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN CANADA SMALL BUSINESS LOAN FINANCING EXPERTISE





Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
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


' Canadian Business Financing With The Intelligent Use Of Experience '




















Stan Prokop

Financing Businesses In Canada : Don’t Be Out Of Step With Business Finance Funding

Past , Present & Future In Canadian Business Financing


OVERVIEW – Information on financing businesses in Canada . Business finance funding has evolved with numerous solutions in traditional and alternative financing . Knowing how to access capital saves time and cost

Financing businesses has evolved significantly in Canada. The past is clearly not representative of the future. Owners and financial managers who are not up to date with what’s available, and from whom, in access to capital, can easily be forgiven for being simply... out of step .

Let's dig in.

Business is often susceptible to ' disruption '

and the methods of financing Canadian companies are great examples of that. When we talk to clients about newer methods of financing there's often a feeling these methods are known only to the privileged few.

Today the owner/financial manager can easily access newer methods of financing. One top expert describes this current situation as ' open knowledge '.

Unfortunately many entrepreneurs / business owners dwell on Venture Capitalists and Canadian banks as key sources of following. Only a minute, and we're talking really minute amount of firms qualify for VC capital. The prospects of accessing true bank financing are much more positive, but still leaves thousands of companies 'unsatisfied' when it comes to all the business credit they need. The 2008 global recession totally hammered access to business credit.

Many start up businesses, as well as franchisees take advantage of Government assistance when it comes to financing. Over 8,000 businesses annually take advantage of the CSBF / BIL loan program which provides government guaranteed loans to the SME sector. (Note: Businesses with under 5 Million $ in actual or projected revenue can qualify.

Another note on government assistance is that federal and prov. govt's tend to be relaxing legislation around CROWDFUNDING. Technology has allowed thousands of people with capital to access your business deal if presented properly and on the right platform.

Seeking the right source of funding in Canada necessitates understanding options in debt and equity. We're huge proponents of asset monetization - many firms simply arent aware that they can cash flow existing assets.

Some examples of Asset and Revenue Monetization:

Sale Leasebacks

Bridge Loans

Tax Credit Financing

Royalty financing / Financing Software as a Service (‘SAS’)

Purchase Order/Contract Financing

Asset Based (‘ABL ' ) lines of credit (They lump A/R, inventory and equipment all into one borrowing facility)

Whether it's traditional or alternative financing there is no substitution for demonstrating you have good management and the ability to produce regular and proper financials.

Acquisition financing for mergers and acquisitions has never been more plentiful - with supposedly thousands of original owners seeking succession plan strategies and buyers for their long established businesses. Here valuation and due diligence are key.

While not all Business Financing in Canada has been timeless what remains constant knows what finance solutions meet your debt, cash flow, and growth criteria? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can show you the path to business financing funding, via the who and how!



Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

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


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Government Funding In Canada : Advice On Getting SBL Small Business Loans

Getting A Govt Small Business Loan ( ‘ SBL ‘ ) Doesn’t Have To Be A Science Experiment

OVERVIEW – Information on government funding in Canada via the ‘ SBL ‘ program . Small business loans are an attractive traditional financing alternative for financing assets and leaseholds for Canadian business owners /mgrs

Government funding in Canada comes in a couple different forms, primarily grants and loans. (Good luck with the grants). Many business owners and mgrs are not aware that small busines loans, commonly called the ' SBL ' are available. Let's dig in.

And by the way, achieving success in a Govt small business loan doesn't have to be like a science experiment gone bad - its not as complicated as you think.

The federal government, via Industry Canada, provides guaranteed loans for existing businesses and start ups. (Yes Dorothy - start up financing is available in Canada!). Why is the SBL loan attractive? Simply because it has rates, terms and structures that in some cases arent even available to larger successful corporations?

Can we explain that last comment? (Yes we can). Some of the key attractiveness of the program revolves around a limited personal guarantee (the majority of the loan is guaranteed by the govt) and the loan period can be anywhere up to 7years, with 5 years being a typical term. Repayment? It can be any at any time, and without penalty... even the big boys can't often achieve that one.

So where does the applicant get this type of financing? Things get even easier now, as it's available through any Canadian chartered bank - the key point being that you must have access or a relationship with a banker that is very familiar with the program and paperwork.

Paperwork? It's not as complicated as one might think, as government bureaucracy conjures up images of piles of paperwork

and untold delays. The truth? Simply that you only need a basic loan package consisting of a business plan, cash flow, info on yourself as the borrower, and some back up document such as a use of the proceeds, which is often demonstrated by quotes or invoices. For a proper loan package a transaction can be approved within a couple of days .

We can save you a lot of time by also advising you that if you don't have your personal finances and credit history in order you won't be approved for the program .That means income taxes up to date (no CRA arrears) and a reasonable credit history as evidenced by a typical business credit check. Technically speaking a credit bureau score of 650 tends to be the threshold of go/no go.

Amounts under the program are typically 350k max, although recent amendments to the program suggest higher amounts are available. And don't forget that the only two asset categories financed under the program are equipment and leaseholds. That includes technology also, and even software.

Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success - avoid that science experiment gone wrong

by focusing on quick and positive success for government funding under Small Business Loans.



Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN GOVERNMENT BUSINESS LOAN EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

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


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop