Financing A Business Purchase : It Pays To Follow This Business Valuation Advice

The Upside Of Financing A Business Valuation Well


OVERVIEW – Information on financing a business purchase in Canada . Business valuation factors and how you interpret and use them have a key role in buying and selling a company successfully

Financing a business purchase in Canada comes with one major requirement - needing to know certain aspects of business valuation and how some of key factors in that process will affect your ultimate success in buying or selling a business. Let's dig in.

Why would business owners / entrepreneurs take on more risk, in effect gamble on buying a business? Many of course feel that that route actually eliminates risk of financial loss if only for the reason they are buying an existing business. Knowing how to finance that purchase (if you're the buyer) or how to maximize benefits of final valuation are key. We'll look at some key issues here from the viewpoint of both the buyer and vendor.

There are some, let us call them ' soft factors ' in purchasing and financing a company if you're the buyer. Although lenders might not necessarily address these issues with you directly we can assure you they are looking at things like your management and industry experience , external economic conditions within your industry, and the potential finaceablity of your sale at a price you and a seller have agreed on.

Other miscellaneous issues (they might not be that miscellaneous) include some due diligence around premises and licensing issues, any environmental concerns, etc. If real estate is part of your transaction almost no traditional finance solutions can be brought to bear if there are environmental /contamination issues.

Naturally the method the seller and buyer have chosen to ' value ' the business affects the financing you need to consummate the deal. That number can vary differently if you have chosen one business valuation alternative over another. These methodologies are a classic bit of art and science and may include:

Return on investment required by the owner

Cash flow analysis (these must be realistic) Here you need to understand past and future working capital requirements

Book values of assets - In many cases either buyer or sell will want to have these appraised

Any business lender, whether it be a bank or a commercial or alternative lender will want to see some key documents around the purchase and sale. They include:

The actual sale agreement itself

Existing financing that is in place - e.g. bank security, leases, contracts, etc - These are typically verified by lenders by checking govt PPSA filings showing secured lenders and what collateral they claim

Up to date financial statements / tax filings


If you are buying a franchise you will of course need permission from the franchisor

In many business purchases a lot of adjustments happen after the sale. They might include which party collects the outstanding receivables, who keep cash on hand, value of inventory that is on hand at closing, and final payments due on leases, utilities, etc.

Whether you're the buyer or seller knowing how to sell or finance a business purchase is key - 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 your business valuation finance needs.


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 & VALUATION 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

The Sale Leaseback Transaction - From The Lessor.. and Lessee's Perspective

We're a frequent contributor to CANADIAN EQUIPMENT FINANCE MAGAZINE . Here's our published article from the JULY / AUG 2014 issue - To check out this great magazine for borrowers and lenders and other finance professionals see: http://canadianequipmentfinance.com/
Our article is on Page 16 of this issue : Here it is


SALE LEASEBACK TRANSACTIONS IN CANADA

The Sale Leaseback transaction in Canada. How can this unique aspect of asset financing in Canada be utilized for maximum benefit. Some might say that it depends on which side of the transaction you are on - borrower, or lender. From our perspective it's a two way street. Properly executed for the right reasons it becomes... excuse the sometimes over rated term... a win / win.


Let's examine some key aspects of leaseback transactions for 2 major asset classes - Equipment and real estate. From the lessee's perspective it’s all about access to alternative capital without giving up use and long term ownership of key assets. In recent years many companies and even financial institutions have focused on shedding ' non core ' assets as a method of employing capital for maximum ROI. A good example? Witness Canadian banks employing the lease back on prestigious bank office towers.

Fundamentally the transaction is simple - Sell and asset to a third party, leasing it back with the option or ability to repurchase it at the end of the lease term.

What then is achieved from the borrower’s perspective? As we have noted it's a redeployment of capital into other areas of the business. Depending on the value and original structure of the transaction this method of financing can affect key operating and capital ratios - they include debt / worth, current asset ratios, etc.


Borrowers consider leasebacks for working capital, technology upgrades; in certain cases it might be prudent to structure a transaction as a term or bridge loan based on specific issue surrounding the deal.

Financing rates play a key role in the overall background to any transaction of this king. Taken into effect must be any original financing remaining on the asset, current rates, and any tax effects related to the deal.

Many owners and financial managers in any company considering a lease transaction are often confronted with ' pride of ownership ' issues which must be properly rationalized. And looking at it from the lessors perspective it is clearly important to ensure the transaction is not viewed as the proverbial ' cash grab '. Simply speaking it is prudent for the lender to satisfy itself around proper use of the proceeds of the deal.

We note that not all lessors, banks, etc offer leaseback financing. In some cases their charter prohibits any financing of this type. In other cases owner/management at a lending institution has simply decided they don't the expertise or risk appetite revolving around a lease back. Charters of many organizations often specifically prohibit this method of refinancing. Niche players in the industry often include firms that have both financing and asset expertise - with many firms have key personnel with in depth liquidation expertise in all categories of assets.

Rates vary on this method of financing, and it should be no secret that the ever present issues of ' credit quality ' and ' asset quality ' are ever present in any transaction of this type.

Some other considerations for borrowers might include the ability to return capital to owners and shareholders. Management that typically might be incented by key ROI and ROI metrics often look to sale leaseback of assets as a method of ensuring attainment of corporate objectives. When refinancing interest rates align with corporate capital conditions for a sale leaseback are viewed as favorable.

Lessors have the potential ability to offer both capital and operating leases as part of their financial offering in this segment of asset finance. Technology lessors make maximum use of the operating lease vehicle - allowing clients to maximize operating expense deductions, balance sheet enhancement, etc.

We've focused mainly in key benefits and consideration of the borrower. From the asset lenders perspective lease back finance offerings necessitate marketing, legal, and due diligence expertise. Lease contracts must be specifically designed to reflect the essence of the lease back. Key issues such as corporate searches and PPSA issues must be tabled and addressed at the start of any negotiation. In essence the leaseback must be properly ' papered ' to reflect the asset and the financial obligations of the lessee.

As noted asset valuation for purpose of refinancing is key. It becomes prudent, almost mandatory, to engage asset appraisal expertise as the cornerstone of any successful transaction. Different asset categories have different intricacies

The proliferation of information via the internet has greatly assisted owners and lenders in determining true asset value for the purposes of refinancing. Market data on almost any asset can be extremely valuable in initial negotiations around deal value and risk pricing... and these days that data is literally up to the minute. Solid appraisals can significantly benefit key issues such as book value, fair market value, impairment, etc


Key aspects of any appraisal include opinion, value, methodology, assumptions and pictures or videos.

We've observed over the years that many lenders rely solely on relationships they have built with specific appraisers. This is much to the chagrin of the lessee who has recognized the needed for a third party valuation, only to find that the appraisal firm they used is not recognized by a commercial lessor or bank. Bottom line? Money spent... unwisely!

By the way, safe to say also that we have never run into a situation where owners of assets have undervalue an asset in their own mind! That comment specifically relates to a key technical issue in asset valuation - i.e. the type of appraisal that is utilized or required by the lessor. Key categories in this area are fair market value, orderly liquidation, and forced value liquidation. By the way, lessors typically lend against a per centage of forced value, thereby highlighting the difference in owners perception of true asset value



The real secret to proper refinancing via a sale leaseback strategy is due diligence as the lender and an informed borrower / lessee around the leaseback process. That final decision, whether you're a lender or borrower will become a much easier one, and absent of surprises.



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 :



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 '

A Government Backed Business Loan : How Not To Fail At SBL Bank Loans

The Path From Start Point To Successful Finish In Govt Business Loans – The SBL Goal Line Is In Sight

OVERVIEW – Information on the government backed business loan in Canada. Known as the ‘ SBL ‘ these bank loans provide tremendous financing possibilities to Canadian business owners and start up entrepreneurs







The government backed business loan in Canada - what Canadian business owner/financial mgr wouldn't want a clear start to finish road map for ' SBL ' bank loans in Canada? Let's dig in.

Expectation, or should we say ‘realistic’ expectation is key in understanding the path to success in govt business loans. Specifically this is the financing offered under Industry Canada's CANADIAN SMALL BUSINESS FINANCING (CSBF) program. Our chartered banks fit in because they are the facilitators of the loan under the government’s ever watchful eye.

So how does the owner/entrepreneur successfully prepare an application and obtain financing approval for these loans? It's all about really bring the pieces of the pie together in accordance with what is really required to achieve loan success - we see a lot of clients focusing and preparing issues and info respectively that is simply not required or is much less important relative to final loan approval. Doing it right allows you to eliminate the pitfalls and failure.

At the outset its key to understand the amount of financing you are eligible for. In the case of the program itself it's specifically $ 350,000.00 for the main offering of the program. (If real estate is involved as the asset financed a 500k loan is allowed - however in our experience SBL loans are rarely used for real estate).

One top expert, and we agree, advises that adopting an ' as much as I can get ‘attitude is a failed strategy!

Here is one case where being specific counts - and that is easily achieved in the following manner: Have a clear ' use of funds ‘statement that specifically identifies the asset and leasehold to be financed, including the $ breakdown. That also reminds us that you need a clear understanding that government backed loans only finance two asset categories - equipment and leaseholds. Equipment by the way can easily include technology, software, etc., as these assets are clearly part of the new economy.

Other key elements of your proposal should include info on the owners - that includes mgmt and industry experience, financial stability, and a general sense of demonstrating you know how to run a business. Newbie’s beware!

The other key element of your application is a strong executive summary, or even better a business plan. This should not be viewed as a difficult document - they can easily be prepared by your accountant, or even better an advisor who works in this area and understands the basics of what the banks like to see - specifically cash flow, an opening balance sheet, etc.
Fine tuning the cash flow to show a positive and realistic ability to repay the loan is essential.

The majority of businesses applying for an SBL loan operate out of a premise, and you should ensure that you have a lease that is at least as long as the term of the loan - for some reason lenders like to know you'll still be around !

In the cases of your ' owner equity ' or ' down payment ' in the program that is a minimum of ten per cent but depending on who you are dealing with that might be more. Demonstrating up front you have ' proof of funds ' is key.

If you want to become a quick ' hero ' in SBL government backed loans and have that ' zero to 60 ' feeling 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 govt bank loans that are achieved annually by as many as 8000 other businesses in Canada that take advantage of the program.



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 GOVT BACK 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

Business Cash Solutions : Break Free With Sources Of Growth Financing In Canada

Feeling ‘ Awkward ‘ About Growing Your Company ?

We’re Solving That Problem











OVERVIEW – Information on sources of growth financing in Canada. Business cash solutions provide the capital you need to comfortably meet your goals.


Sources of growth financing in Canada allow the Canadian business owner / financial manager to ' break free ' from those chains they feel when it comes to growing their business. Those same business cash solutions or lack thereof! can make our break your business. Let's dig in.

The challenges to lack of bank financing in the SME Commercial Finance sector leaves owners/mgrs with a feeling of awkwardness - if only for the reason they don't know where to turn when it comes to accessing capital.

If there is any good news it's simply that the whole situation has left a lot of alternate solutions on the table, as well as in many cases forcing business to get back to a lot of basics around cash flow planning. There is nothing more exhilarating than your client demands for more of your product or services and feeling you can't deliver because of financing challenges.

Not everyone may necessarily agree that the current state of business finance in the small/medium enterprise sector is a dire straits situation. For centuries business has relied on Canadian chartered banks and other large institutions to provide the bulk of financing needed

Are there business cash solutions that will eliminate the concern for lack of finance alternatives? Of course there are, and they include:

A/R Financing

Inventory Finance

Asset based ABL lines of credit

Purchase order financing

Working capital term loans/unsecured cash flow loans

Tax credit financing (SR&ED / Media refundable tax credits)

SAS Financing (software as a service)

Royalty Finance

Securitization

Equipment financing/ Sale Leasebacks/Bridge loans


If in fact top experts are correct that access to finance remains a large concern to owners then the above solutions clearly provide positive hope.

Naturally many firms continue to pursue outside equity capital - that’s not what we're focused on here today, if only for two reasons:

Only the smallest percentage of firms going the private equity/VC route are successful , and we'll remind you that when they are owners give up large per cent ages of ownership.

Naturally if you don't have proper financials, and other potential key requirements such as business plans, timely cash flow projections, growth prospects, etc you are never going to get the financing you need at a competitive price.

And in many cases those non bank alternate finance solutions cost more so your ability to achieve the lowest cost is always going to be hampered by a poor business/financial case. Simply speaking you need to show lenders you're got a growth plan to success.

If you're feeling ' awkward' about Canadian business financing 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 in breaking free from the chains of lack of sources of growth financing .






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 FINANCE & GROWTH 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

Asset Based Financing In Canada : Don’t Miss Out On The ABL Business Finance Solution Because You Didn’t Know

Need A Special Ops Team To Provide You With A Business Asset Based Credit Line?

OVERVIEW – Information on ABL asset based financing which provides a line of credit solution unique to business finance needs and lines of credit in Canada

Business finance in Canada often requires asset based financing in the form of a credit line. One alternative to the traditional Canadian chartered bank solution is the ABL credit facility. Let's dig in.

The other day one of Canada's major business newspapers had an interesting article around the need to treat certain aspects of business needs as a ' SPECIAL OPS' assignment - focusing on issues such as understanding the mission, the value of success, the training and info needed so things don't go wrong ... Is it just us but that's a solid analogy to addressing the need for business credit lines.

The ' ABL ‘(asset based lending) solution is a fundamental game changer in Canadian business financing. It's specialized lending 101, allowing any business that has two key assets (Sales and business assets) to monetize that into a revolving line of credit.

The even better news is that depending in your circumstances other asset categories such as equipment and your business commercial real estate ( if the latter is applicable ) can be easily combined together to give you tremendous borrowing power relative to the ongoing value of your sales and business assets . Its one time when ' growth is good ‘, giving you the ability to remove the concern around running out of ongoing cash flow needs.

It's important to review ABL financing in the context of short term borrowing power and not the dreaded ' debt ' word. Yes, its true cash flow could be alleviated in some form by a working capital term loan or mezzanine/cash flow financing - yet these solutions involved fixed payments, longer amortizations, etc. In the case of a bank credit line, or in our situation, ' ABL ' you will be repaying the facility constantly as your sales and receivables come to maturity. Naturally that is all part of what the finance folks call you operating cycle - the travel of a dollar through your business from materials purchase to inventory to receivable to... finally... CASH.

Firms of all risk profiles are eligible for ABL asset based finance solutions. Those solutions can be uniquely just inventory, or A/R, or a combo of both. If you have the collateral ABL has the solution. Experienced business owners know that bank financing in the form of credit facilities requires a holy grail of profits, cash flow, and balance sheets/income statements that satisfy bank ratios. Great for some, but not accessible for all.

In many cases this type of Canadian business financing allows you to acquire a competitor through the use of asset finance, and is also used by many firms as an interim ' restructuring' strategy.

If you're looking for some SPECIAL OP'S assistance in the form of availability in a business credit line via ABL seek out and speak to a
trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can ensure you aren't missing out on one of the most available solutions that you might have not known even existed.



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 ASSET BASED LENDING AND BUSINESS CREDIT LINE 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

Working Capital Factoring : Connecting The Dots In Solutions Via Receivable Factor Companies

Receivable Financing Is The Equivalent In Going From Homeless

To Rich In Business Cash Flow










OVERVIEW – Information on working capital factoring in Canada . Why does the Receivable factor solution deliver on cash flow in a number of different situations that the Canadian business owner finds themselves in

Can working capital factoring solutions be our business version of ' homeless ' to ' rich '?

It's an interesting analogy if only for the fact that the receivable factor firm solution, properly done creates capital you never had. Let's try and 'connect the dots' in those solutions so the business owner / financial manager sees a clear path to business cash flow freedom. Let's dig in.

There are of course options in working capital finance - they include taking on debt under a working capital term loan or mezzanine unsecured cash flow loan; or the traditional route of Canadian chartered bank financing - theoretically available to all but unfortunately not always to those that need it most.

So why does financing your sales via A/R factor financing a logical step to business capital freedom? For a starter that low cost bank line of credit may not be available to your firm for many different reasons. If for any number of reasons your firm does not qualify for bank credit you're back to square one... our version of business homeless!

Many firms have the most incredible problem imaginable - they are too successful and growing too quickly. That ' rush ' from getting a large new contract or purchase order or seeing sudden surges in sales brings working capital nightmares, as more and more funds are tied up in materials, inventory, and finally accounts receivable

In certain situations your working capital is required for expansion needed for lease/loan payments on new assets, or marketing and headcount growth. Many clients we meet do great business only at certain times of the year - that seasonality causes cash flow needs to rise and fall dramatically at certain times, sometimes unexpected.

One final situation is the whole issue of payment terms and collections. Even large corporations are often typically the ones that pay the slowest, and then there’s... the government!

While certain situations immediately disqualify you for bank financing (negative net worth, fluctuating profits and cash flows, huge jumps in sales revenues) it’s these exact situations which make your firm a solid choice to be financed by a receivable factor.

By the way, in many cases a working capital factoring solution can be a component of a ' total ' asset based lending deal, whereby your A/R, inventory and un-liened equipment are combined into on solid business line of credit. It's typically called an ' ABL ' line by the pros.

Is there one type of receivable factor solution that works best? In our opinion it's non -notification CONFIDENTIAL RECEIVABLE FINANCING , allowing you to bill and collect your own receivables, draw cash against sales when you need it, and only pay for what you are using .

If you want some help in connecting the dots in A/R financing 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 with in that ' homeless' to ' rich' transition in business capital!




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 FACTORING AND CONFIDENTIAL RECEIVABLE FINANCING EXPERTISE





Stan Prokop









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

Lease Asset Finance : Here’s Your Antidote For Effective Equipment Financing

‘ Some ( Proper ) Assembly Required ‘ On Your Financing For Equipment & Technology

OVERVIEW – Information on how business owners and financial managers should focus on the right issues when it comes to lease asset finance. Equipment financing is all about what you finance and how when it comes to these ‘ tricks of the trade ‘








Equipment financing in Canada (although my Canadian business owners and financial managers might not realize it) requires some assembly. But don't worry, it doesnt bring the same challenges as an IKEA put together , it's simply understanding that when it comes to lease asset finance some knowledge of the basics becomes critical to not wasting and mis utilizing your capital . Let's dig in.

Lease finance is all about asset acquisition - acquiring assets at the right time to run and grow your company. Your ability to understand what type of lease you need, as well as focusing early on re the basics of the agreement can sometimes cost you the thousands of dollars you thought you were saving with this popular tool in Canadian business financing.

The current Canadian scene in asset financing via leases or rentals comes with terms and charges that need to be assessed up front. In the last several years the accounting world has revisited OPERATING LEASES and made some real changes to how this oft under looked finance vehicle works.

We are of course assuming that you as the business owner/manager understand that you do in fact have to choices - either a capital lease , which is a lease to own, or an ' operating lease' which , simply stated, is a rental of sorts.

For years operating leases were known as ' off balance sheet ‘. What a great idea - acquire debt and not have to show it! Well the accounting folks have changed all that, so while the key benefits of this type of asset rental remain, your transaction is now visible to all when it comes to the balance sheet and your financials.

Why do lessees then pick operating leases? The reality is that for certain types of assets, i.e. technology, planes, heavy equipment, vehicles, etc you don't pay the full price of the asset given that at the end of term it returns to your lender/lessor. This means lower monthly payments and flexibility at the end of the lease. And the best part is that at the end of the term you have options, if properly set up front, to return, purchase, extend, or upgrade the asset.

Naturally if you think the asset is going to have value in your business you can ensure the asset remains in your possession, for additional use or resell.

What business owners/managers must do is to focus on key basics at the start. Ensure you diarize the lease for its end of term - lessors have a bad habit of keeping those monthly lease payment requirements coming unless you invoke your end of term options.

While capital ' lease to own ' options are often 3-7 years in length the most common operating leases tend to be in the 3 yr range unless its a large asset such as an aircraft . All of a sudden your corporate jet acquisition seems manageable?!!

So while your ' interest rate' in a lease is important its key to focus on things such as terms and conditions, type of lease, return/ownership options, and internal management / recording of the lease term . Good negotiation skills up front can save you thousands , also consider the services of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can make equipment financing and lease asset finance a key part of your growth toolkit .



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 LEASE ASSET FINANCE 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