Looking For A Gamechanger Strategy In Technology / Computer Financing For Your Company ? We've Got One!

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Looking For A Gamechanger Strategy In Technology / Computer Financing For Your Company ? We've Got One!

Information on computer leasing and technology financing in Canada - The right acquisition financing strategy in these types of assets is critical

Computer Leasing – the lease financing of business computers and technology is probably the best example of your Canadian business utilizing classic benefits of lease financing.

Why are Billions of dollars of computers and related technology leased every year – The answer is that the computer industry seems always in the forefront of new and leading edge technologies. As consumers we know in our home purchases how quickly we might be feeling that our technology for home computing is out of date, not fast enough, doesn’t have enough bells and whistles, etc .


The classic benefits of lease financing are generally known to most Canadian business owners and financial managers – they include the ability to upgrade equipment easily or at the end of a lease term. Many organizations, especially moreso if they are larger are not looking to spend large sums of their capital budgets all at one time on computer upgrades.

We refer to ‘ computers ‘ – but to be clear computer related financing includes everything you might be thinking of in a technology acquisition – that includes the actual personal computers, servers, mainframes if that is appropriate, application and operating software, as well as maintenance contracts and service contracts . The total dollars spent on computing power in any organization is always significant relative to the total of any company’s capital budget.


Additional benefits include the ability to contain debt on your balance sheet, remove debt entirely and still acquire your computing power ( operating leases do that ) and also you have the ability to influence cash flow via fixed or variable payments . Many customers choose to pay leases on a quarterly or sometimes even on an annual basis, although monthly tends to be the most popular method.


We have spoken of obsolescence, and also referenced the fact that computer and technology leasing is a classic ‘poster boy ‘for lease financing. That is because as technologies change you do not want to be locked into the inability to acquire more computing power for the same or less money. The author worked in computer financing for over 20 years, and whether it was dealing with the CFO of some of Canada’s largest organizations, to small start ups during the’ dot com’ era – all of these people recognized the power of technology financing .


Let’s illustrate via a simple but clear example -. You need to purchase 100,000.00 of computers and related accessories – Typically your monthly payment would be, over a 36 month term approximately 3100.00/ month.

If you had paid cash for the purchase you would probably find in two years you needed new computers – you have spend 100,000 in cash, you own old technology which is depreciating, and newer computers and software are being used by all your competitors to gain a competitive advantage .


What might you have done? What would an alternative business financing strategy be? Well , if you had leased the computers and structured the transaction as an operating lease here what you would do – you would return the computers to the lessor , order the new computers , and you payment would stay the same or in some cases be less !

And of course now you have regained competitive advantage in your marketplace if you place an emphasis on computer power, internal infrastructure, and access to your data, ET c


That is just one of many, many ways in which computer lease financing is a powerful financing strategy. Talk to an experienced business financing advisor who has credibility and experience in this type of financing – You will soon find your firm is also ‘leading edge ‘in financing!


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

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.

Stan Prokop

Secured Lending in Canada

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There are various types of secured lending in the Canadian business environment. Let's examine some of those secured loans and discuss some of their characteristics.

When most business owners or financial managers think of secured lending they are thinking in terms of their operating loans or operating lines of credit, sometimes called ' revolvers' in finance language.

These loans are used to financing working capital, primarily receivables and inventory. In taking and registering this security the bank or some similar financial institution will take an assignment of these 'liquid assets' of the company. On occasion customers will hear the term ' demand loan ' and we are in effect talking about the same thing.

How does the bank or other institution secure the loan? They register what is known as a General Security Agreement, commonly called a 'GSA 'against the business. In determining their security and overall all 'credit limit' with the customer they usually agree to advance against 75% of all good receivables, and some component of inventory. We can, as a general rule, say that banks don't really like inventory - simply because they aren't set up to liquidate on it when they have to.

If everything goes well that is as much as the business owner really needs to know. The loan is secured, the bank registers a public security against the company, and the company has access to working capital.

How does the Secured Lender realize on the security? Again, we are talking about the worst case scenario when a bank has determined it needs to 'call the loan ', terminology most business owners know too well but hope they never have to live through. The bank is in effect, at that time, attempting to crystallize on its loan. In securing the loan we spoke of the bank or other lending institution taking an assignment of the assets. Now that the loan has been called an actual assignment is enforced - customers are notified by the bank and monies are collected by the bank to reduce the loan outstanding. The bank now finds itself in a position of having to deal with the inventory they did not want to deal with, and we typically find that the inventory is directed to be sold by an auctioneer or salvage firm, who acts as a temporary agent for the bank.

When loans are enforced in such a manner the results are usually disastrous for the customer and have a major impact on the company's ability to go forward.

Lenders securities agreements in Canada are all registered under Canada's Person Property Security Act, and are in effect public knowledge for those that wish to investigate secured dealings. This process is very similar to the UNIFORM COMMERCIAL CODE (UCC) that exists in the U.S., and in fact the security legislation in Canada was very closely model to the U.S. way of secured lending notification.

There are other forms of secured lending Vis Vis equipment, debentures, and security is generally handled in the same manner re: registration, etc.





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

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.

Stan Prokop



















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/3642236

SR&ED Financing In Canada : Accessing SR ED Loans

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How To Win The War On The Wait For Your SR&ED Refund

OVERVIEW – Information on sr&ed financing in Canada. The ability to finance a sred claim provides valuable closure to your r&d capital investment . That closure? Cash!

You have filed your SRED (SR&ED) tax credit . The benefits of this program can’t be overstated . Now all you have to do is wait for the cheque from the government, right ? Let’s dig in .

There is another option . As a Canadian business owner and financial manager you may have chosen to ‘ book ‘ your SR ED claim as an account receivable – money owing to you, that is non- payable , from the government . Some of our customers choose to book the claim as an asset/receivable, some choose not to, or in some cases they book a conservative estimate of their final cheque .

Assets can be financed – your SRED claim is an asset, and is in effect a receivable, somewhat longer in nature than you other receivables ( hopefully ). Those Canadian firms that have bank lines in place have probably realized by now that most chartered banks in Canada do not include your SRED claim as a true receivable .

So, can that receivable be financed and monetized ?? It absolutely can, via the process of SR ED financing . We hear more often than not the term ‘ factoring ‘ in business – which is, of course, the sale of a specific, or group, of receivables .

That’s what SRED financing is about . A carefully constructed SRED financing allows you to ‘ cash in ‘ – the finance people say ‘ monetize ‘ the SR ED claim . That’s valuable cash flow that might not have come into our working capital for many months, in some cases a year based upon the timing of your filing, the complexity of the claim, the technical audit, etc .

We strongly recommend to business owners that if they are looking to finance a SRED calim that they work with an experienced and trusted advisor in this area .

Whenever we meet with a client or business owner who wishes to inquire about our SRED financing work the company invariably wants to know several key things –

How does it work?

What does it Cost?

How much do I get on the claim?

What’s involved ?

When do we get our funds?!

Lets discuss those issues in a general way, we honestly think our comments will apply to almost 95% of SRED financing claimants . You want facts? We’ll give you the facts ! –

SRED 101 – Everything you wanted to know about SRED Financing, but were afraid to ask .Your SRED claim is sold/assigned to the financier - Similar to the factoring practice of selling a receivable you sell your claim for the purposes of getting the cash – it’s a sooner rather than later scenario ! SRED financing is a form of alternative financing, rates vary with the size and complexity of the claim, rates are higher than bank financing .

In our experience firms financing their SRED’s are totally focused on generating additional cash flow and working capital so they can continue to grow sales and profits. Claims are financed at approx 70% of their LTV. By LTV we mean loan to value, so a company filing a 300,000.00$ SRED claim would receive 210,000.00$. The balance owing to you, (less financing costs) is funded when the claim is finalized and paid by CRA – Revenue Canada.

Oh, and what’s involved? In our work with clients we maintain that a SRED financing is not unlike any other financing: an application, some backup information, some due diligence around your company and your SRED, then documentation, and you’re funded. We typically have been able to originate and complete financings for our clients in 2-3 weeks.

Bottom Line ? Sr&ed Financing is a viable and valuable alternate form for working capital financing in Canada! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your tax credit financing needs .

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

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.

Stan Prokop

Factoring Is The Secret Weapon In Canadian Receivables Financing - Here's Why!

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There's A Better Way To Finance Sales & This Just Might Be It!
More Powerful Than A Category 5?!

Information on factoring and canadian receivables financing solutions . The ability to monetize your sales into cash flow / working capital is a key success measurement in any business

Factoring in Canada provides Canadian business owners and financial managers with an alternative method of financing working capital and cash flow needs. A classic situations in which your firm would utilize this method of financing is when you are experiencing strong growth, or unable to finance daily working capital needs when you have significantly larger orders or contracts with either a new or existing customer . Factoring in Canada is the financing of good accounts receivable. The business model is simple to understand, but requires extra diligence on your behalf in choosing which technical method of factoring would work best for your firm.


We recommend non notification factoring to our clients, although that is only one of several methods available to your firm. Under the non notification method of factoring you are in total control of your receivables and working capital. You bill and collect your receivables in the normal manner that you always have, but at the same time, due to the way in which factoring benefits business, you receive instant cash flow and working capital as soon as you are able to generate a valid invoice to your customer.


The higher cost of this type of financing can in many cases easily be offset by smarter buying on your firms part, or taking advantage of discounts not previously available to yourself when you carried large receivable and inventory positions based on traditional customer payment habits of 30, 60, and yes even 90 days sometimes . If you have a customer that is paying in 60-90 days you can generate all the cash due from those sales 2-3 times via factoring, as opposed to getting paid once in the customers 60-90 day payment time to yourself .


Factoring is simply all about working capital turnover. Is factoring the panacea of total goodness for your firm. We tell clients that no one type of financing is always going to be the best long term solution for your firm , but quite frankly factoring is an excellent ‘ bridge ‘ to your next level of growth . That bridge is there because your firm is new, has financial challenges, or, as we noted, is growing too quickly to allow you to negotiate traditional bank financing.

So how do we ‘cross the bridge ‘our clients ask? The answer is to simply understand the following facts:


Factoring is a solid immediate cash flow and working capital solution for Canadian business
Factoring has a higher cost than traditional financing
More often than not it should be viewed as an interim financing facility
There are different types of factoring in Canada offered by different firms – Don’t choose the wrong facility!


Factoring and receivable financing, (also known as invoice discounting) differs from traditional bank lines of credit. Depending on which type of factoring facility you use you in effect can have unlimited access to working capita. That is simply because this type of financing focuses on your assets themselves, not your balance sheet and income statement. In negotiating a bank line of credit the total focus is on yourself as owner, your balance sheet, your income statement, your industry, and your years in business.


Factoring places a much smaller reliance (in some cases none!) on those guidelines, and focuses solely on the following:


You have assets (receivables)

They are financeable today for immediate cash flow!


It’s as simple as that.


So, in summary is it that easy? Yes. And no. We say no because the challenging in setting up a proper factoring facility in Canada is simply understanding the differences in the types of facilities that are set up on your behalf, how they work, how they are priced, determining if you wish to lock in to a contract or leave it open ended, and your overall comfort level with the day to day business model of factoring receivables as you generate sales. Speak to a credible, trusted and experienced business advisor in this area and ensure you understand how the benefits of this type of financing can be crafted into a facility that works for your Canadian firm.


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

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.

Stan Prokop

Construction Manufacturing Equipment Financing – Options for New and Used Equipment

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Searching For Help On Manufacturing Equipment & Construction Equipt Financing ? We've Got Your Back !

Information on construction and manufacturing equipment financing options in Canada- Choosing the right finance option accelerates business growth and allows maximum cash flow benefits

Construction Manufacturing Equipment Financing plays a huge role in the Canadian economy. Business owners and financial managers such as you want to ensure they have the best leasing and financing options available to them – It has continually been proven that financing equipment via leasing is a very cost effective option.

One of the many important features of such a financing is the ability to match his term of the lease with your expected use and residual value of the equipment. Generally equipment lease financing for used and new manufacturing equipment can be arranged for terms varying from 3 to 5 years.

No one knows better than the business owner what the useful expected equipment life of the asset will be, and we encourage clients to match the term of the lease financing transaction with the economic life of the asset. The reality is of course that construction manufacturing assets have significantly longer useful expected values – (as compared to assets such as computers!)


We encourage clients to work with a trusted, credible and experienced lease financing advisor. The benefit of such knowledge can save you many thousands of dollars based on the overall rate, term and structure of your lease transaction.


There are of course other financing options when it comes to the acquisition of such assets – those options could include a government small business loan or a term loan from a bank. While these might have a lower rate to the overall transaction they come with much more stringent credit criteria – heavy emphasis is placed on the balance sheet and income statement of your firm. Leasing in general places a larger emphasis on the expected value of the asset during the term and at the end of the lease.


Many customers don’t realize that some of the additional costs that relate to the acquisition of used and or new construction manufacturing equipment can also be financed – these include maintenance, installation, shipment, etc. That’s a huge cash flow and working capital benefit.

In certain cases your firm might already own such assets and you might want to consider leverage them through a sale leaseback for additional cash flow and working capital. That is a very solid financing strategy that many firms have taken advantage of over the last year, as cash flow and working capital availability tightened significantly during the global credit crisis of 2008 and 2009. Owners simply adopted a strategy of leveraging their equity in assets to stay liquid and competitive.

Many financial mangers simply view lease financing of such assets as a solid cash flow strategy, you minimize payments and match them to the overall benefits of the equipment you are acquiring.

Seek a trusted advisor. Focus on which benefits of lease financing are most important to your firm. Structure and acquisition that makes sense form a cash flow, rate, and term structure based on the value of the asset and your current financial condition. That is solid business planning for growth.




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

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.


Stan Prokop

How Can an Asset Based Line of Credit Help Your Company Implement a Turnaround Strategy

An asset based line of credit is an excellent strategy for any firm who is considering viable turnaround options. This finance strategy is also an excellent way to assist a firm in understand what some of its underlying problems are.

An Asset based line of credit, commonly referred to as an 'ABL' arrangement can be instituted even if the company is not profitable or in fact is experiencing financial duress.

Prior to considering an ABL many firms will find they are experiencing sever cash flow pressures. Traditional working capital is shrinking, and sometimes external factors to the business simply exacerbate the financial challenge. If the business owner or financial executive do not take charge at this point a business failure in fact is likely.

Many firms gravitate towards an ABL arrangement after their bank operating line of credit. Most business owners quickly realize both the benefits and the risk of having significant bank lines in place. Traditionally these lines of credit are secured by receivables and inventory. Businesses are told they can borrow up to a certain limit based on these facilities. Every month the company submits detailed lists of a/r and inventory and can borrow certain pre agreed upon limits against those assets.

Banks typically advance 75% of those receivables that are under 90 days. In asset based lines of credit facilities that amount is often 90- 100% of receivables, creating immediate additional liquidity.

Banks have become much more cautious on inventory, that is simply because they don't, and cant be expected, to understand each firms inventory values and products. Asset based lenders tend to have much more experience in these matters and are more often than not inventory experts. Therefore advances against inventory are much higher. Again, what does that do, well it of course creates additional liquidity.

Many, if not most, oh, lets be honest, all banks set maximum borrowing limits that are dependent on other external factors such as other collateral they hold, perceived operating risk, and the value of personal guarantees of the shareholders.

Bank operating lines are best when a firm is experience steady, but not erratic growth, and when the firm can operate comfortably within its borrowing limits as agreed upon with the bank.

When firms run into financial challenges they of course have a business that is contracting in many ways. Therefore borrowing against receivables and inventory becomes limited, and the bills that need to be paid are of course paid with less cash available and on hand.

It is at this point that many businesses realize they are starting to default on bank covenants. In many cases, for a variety of reasons, sales are falling.

It is very difficult for a business owner to both realize what is happening, and, moreso of a challenge, correct the problem. Financial losses only augment the cash flow problem. Many companies in fact aren't trouble by operating losses, but have simply over expanded. Business owners get into the mindset that if they are expanding, there can't be a problem! Most financial executives know that a company can fail not for lack of profit, but from lack of liquidity.

The time to consider an asset based line of credit is probably right now. The customers bank either has, or is reviewing its options relative to collateral and security arrangements. The bank will start to take measure to ensure it gets paid in full - this typically includes reducing operating lines of credit, formally calling a loan and setting new deadlines for the customer to 'right' the business, or exit the bank relationship.

It is at this time the customer should be focusing on alternative lending sources such as the asset based line of credit with non-bank finance firms. This facility improves liquidity, places less reliance on external guarantees and collateral, and can operate with a firm that is getting back on its track to profitability. We hasten to add that a severe financial 'death spiral' cannot be properly address by either the bank or the asset based line of credit solution.

The business owner and manager must recognize the current financial situation, and address that situation in as prompt and efficient manner as possible.

Stan Prokop is the founder of 7 Park Avenue Financial. ( http://www.7parkavenuefinancial.com )

The firm originates business financing for Canadian firms and is a specialist and expert in working capital and operating lines of credit.


















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/3527688

Lease Equipment Financing – Canadian Solutions !

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Looking For Uncomplicated Asset Financing For Your Business : We’ve Got It!

OVERVIEW – Information on lease equipment financing and asset financing solutions for the Canadian marketplace. How asset acquisition finance strategies work is key to success in growing your business

Canadian Lease Financing Solutions are available for Canadian business owners who are acquiring assets and business equipment.

When a Canadian business owner or financial manager considers a financing transaction he or she wants to understand the advantages and disadvantages of such a financing. When we meet with clients we clearly explain that no one financing solution is a perfect solution when evaluated against other alternatives. That certainly applies to leasing.

Are there actually disadvantages to a lease financing strategy? Here are a couple of things for you to consider. Naturally a lease is a fixed payment arrangement, so you do have a constant obligation to meet the agreed upon payments over the term of the lease. If you have chose a ‘ lease to own strategy then clearly you own the equipment at the end of the lease – in some cases certain equipment holds value and actually appreciates, but 99% of business assets, other than real estate, decline in value .

Your accountant may tell you that some of the tax advantages of a lease are less attractive. A lease versus buy strategy may point out that it is actually financially advantageous to purchase or take out a loan.

Well there, we have given you four or 5 reasons why Leasing ‘might ‘not be the best financing strategy. Now though, let’s talk about ten or more reasons why Canadian lease equipment financing solutions in fact might be very attractive and appealing to your asset acquisitions!

The most obvious benefit of leasing as perceived by Canadian business owners continues to be that it allows your firm to conserve working capital. We talked about how a lease versus by analysis by your accountant or financial team might show that leasing is not the best acquisition strategy – however in many cases, depending on criteria assumptions, it in fact may well prove to be a more profitable financing and cash flow strategy.

If your firm has bank loan or arrangements with any other lenders you are often, if not always subject to other covenants and restrictions they have imposed re collateral, personal guarantees, and ratio covenants. In a lease financing strategy the collateral is generally just the equipment, it’s a very stand along type of financing! And naturally those bank lines and arrangements that we just spoke of are not disturbed; you can still use them for day to day working capital and cash flow.

When clients ask how long it takes to get an approval and financing completed we generally indicate that can be done in a week or so with their full co operation. Generally that type of time line cannot be met with other types of financing. And payments and cash flows can always be structured to meet your financing needs. In effect you have arranged an alternate source of financing for your firm, and all financial gurus will advise you to ensure you have multiple, not just one, source of business financing.

In May cases you are acquiring business equipment and assets because of budget issues and leasing certainly helps to eliminate what our firm calls the ‘obstacle to innovation. Certain assets your lease will ensure you have in effect created a hedge against obsolescence.

Bottom Line? We’ve given you four or five reasons not to choose equipment financing in Canada as a financing strategy – hopefully you will weigh those against the ten or so great reasons to financing via leasing. Speak to a trusted credible an experienced advisor in this area if you wish more information.


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

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.

Stan Prokop