Have Questions On Leasing Finance and Equipment Financing In Canada ? Common Sense Approach To Asset Lenders

Work Through The Lease Finance Process With New Confidence





What questions and issues should owners be asking or facing when it comes to leasing finance in the Canadian marketplace . What key issues in equipment financing should business owners address when it comes to working with asset lenders for structures that work for your firm .









In a perfect world, ( know it's.. not! .. but ..) your ability to successfully structure business financing is critical to your firms survival. Let's ensure you've got a solid handle on leasing financing when you're entertaining equipment financing as a strategy for success. And in the process we'll ensure you've got a solid handle on asset lenders in Canada.



The long term goal is to make equipment financing make sense. That of course means ensuring you have a reasonable level of pricing on your transactions, and, most importantly, that the proposition put forth by asset lenders in Canada makes sense... for your firm! So it’s therefore about asking the right questions and following up on those to make good business financing decisions.



Common sense dictates you want to talk to asset lenders based upon your final choice of an asset that will add value... and profit to your business. You will find yourself going through a three pronged stage of negotiations and fact finding (for you and the lessor)... on then to approval and commitments by both parties, and finally documentation and funding. Seems simple right, so where then do things go wrong?



Your firm makes a stronger case for leasing finance when the asset you have chosen allows you to grow your business and generate additional cash flow. But at the same time you should also be thinking of the term of the transaction, i.e. how long will this asset last. In a perfect world you want to try and best match the useful life of the asset to the term of the lease. In initial discussions with asset lenders ensure they understand the assets value in your overall growth and future plans... that’s important.



Choosing the asset is half the battle, ensuring you can pay for it is of course the other half. That's why some basic cash flow analysis and payment budgeting should be critical at this point in your finance decision. A simple financial calculator can calculate estimated lease payments in seconds. Although we're still at the beginning of the transaction give careful thought to what will happen to the asset at the end of the lease - for example, do you want to use it, return it, re finance it for an extended period of time, etc...



We've spoken recently on ' the box ' in leasing. What's the box? asks our clients. It’s the proverbial credit box - that cage that lessors try and put you in to ensure you perfect fit into the box modules - deal size, asset type, your credit quality, pricing re interest rate they will charge... etc.



We've seen clients spend countless hours, days, weeks, even months! muddling their way through the boxes. This where some common sense information on what type of equipment financing company most suits your firm is worth a lot .. in terms of time and money. Your ability to present the asset, your credit quality, and your long term viability when it comes to making payments is critical at this point.



Experts. You can’t be expected of course to know the substantial and fragmented nature of leasing financing in Canada. Who are the asset lenders, which one suits your perfectly, and are you working with the right firm if you have had financial challenges in the past that will be convincingly solved in the future.



We continue to believe the common sense approach to working with an expert in any area of your business makes sense .Speak to a trusted, credible and experienced Canadian business financing advisor to ensure you have the questions, and the right answers! in place for Canadian asset lenders. Allow the power of leasing finance to help you over achieve on your business finance goals.











Stan Prokop - founder of 7 Park Avenue Financial -



http://www.7parkavenuefinancial.com





Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :





http://www.7parkavenuefinancial.com/leasing_finance_equipment_financing_asset_lenders.html

Let Equipment Leasing Finance Be Your Forward Momentum for Asset Financing – Use Lease Companies Today More Than Ever

In Uncertain Times Let Equipment Lease Finance Be Your Sure Thing Asset Financing

Information on equipment leasing finance in Canada . How lease companies and accelerate your asset financing needs.


A condition of advancement. That’s how ' forward ' is defined, and isn’t that whats it’s all about in business and competition. And acquiring assets via equipment leasing finance categorically moves your company forward. It’s the proper use of lease companies in asset finance that we'll examine, with a focus on ' why ‘!

Canadian business owners and financial managers do best when they view asset financing via equipment leasing finance as a ' tool '. It's utilizing that tool to leverage assets for your business sales and profit growth that makes lease companies the logical solution for fixed asset acquisition.

So for what type of asset does equipment finance not work? Quite frankly we cant think of one - whether its the new kid on the block - energy assets , or manufacturing, chemicals, food, planes, construction, auto , public infrastructure ... well .. we think you get the story. All assets can be financed, simple as that.

Whats so hard about understanding the value that lease companies bring to your firms table? It's a simple case of you ensuring you have chose then right asset, and that asset then being purchased on your behalf .. ensuring your ability to profit and grow from the use of the asset.

But that’s not all of course, because the inherent flexibility that comes with leasing gives you the right to acquire the ownership of the asset depending on what type of lease you construct and on what terms.

Advantages of this method of asset acquisition are fairly well known. You are in effect matching the outlays of cash for the lease to the benefits you will derive from the asset. The Canadian lease financing marketplace is on a total roll in 2011 and the asset finance industry is ready for business, yours! Interest rates are low, lease rates are ultra competitive and in many cases can even match bank financing, especially when you consider the processes and collateral you might be required to go through via a bank term loan for an asset .

2 to 5. What do we mean by that? Simply that that’s the typical duration of an asset lease in Canada - anywhere from two years to five years. We can’t remember when we have seen a lease term less than two years, because it simply doesn’t make sense for lease companies - although on occasion 7 and 10 year terms are available for certain asset classes... think heavy constructionb, aircraft, infrastructure, etc.

Clients can be forgiven for usually focusing only on the cash and working capital preservation aspects of equipment leasing finance .If you have limited capital, or don’t wish to disturb other financing you have in place leasing makes sense. Yes it’s true, this method of financing doesn’t deliver cash to your company, but it sure prevents it from leaving quickly... and in large amounts.

It’s of course an understatement to say that we’re doing business in a tech driven environment, so computers, telecom, and other tech assets lend themselves perfectly to equipment finance.

If you're concerned or simply want to become better informed about how to go about achieving the best benefits of this financing vehicle speak to an experienced, trusted and credible Canadian business financing advisor who can assist you in ensuring you're ' moving forward ' via this valuable tool in Canadian business financing.



Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/equipment_leasing_finance_lease_companies_asset.html

DIY Equipment Finance & Leasing Canada ? Best Companies for Asset & Lease Equipment Needs

When the Canadian business owner or financial manager looks to the leasing of an asset, as opposed to a purchase it’s a great time to invest in some knowledge around which companies to approach for equipment finance needs.

But can you be expected to be a ' DIY ' expert in this broad area of Canadian business financing. What we are saying is that it will pay you handsomely to either invest some time in understanding some key fundamentals of equipment finance, or, alternatively work with an expert who can assist you.

Why invest some time in this type of business acquisition? Simply because the Canadian lease landscape has evolved significantly over the last couple years. A combination of the economy in Canada, the lease industry players, new accounting rules and a myriad of product offerings can make it seem daunting.

By the way we're quite sure any business owner can work with lease companies and enter somewhat quickly into a lease for an asset, but is it the right lease and what are the financial implications and benefits or lack of benefits around that transaction. That’s the $ 50,000 dollar question!

Because almost 80% of all business utilize leasing Canada - that’s why it sometimes is both easy and mis- understood. Many business owners simply don't either under the lease product/service offering, or, alternatively fail to recognize the benefits. Yes, its only one method of financing an asset (you can consider a term loan)... but when a lessor / lease company’s recognize you know what you're talking about you have simply increased your chances for success.

Lease and equipment finance doesn’t bring cash flow and working capital into your company, but boy does it reduce the amount of funds that go out of your firm! The ownership of the equipment from by the lessor, for the term of the lease allows you to structure payments, write off payments as an operating expense, and more importantly keep you ' nimble' when it comes to assets and technologies that you finance over short or long terms. (Typical lease terms in Canada range from 3-5 years).

Business owners might want to do the math but we're quite sure that if you work the numbers it makes sense to enter into a couple of short term equipment finance transaction rather than purchase/buy outright the same assets over a number of years.

If you do invest time in understanding some lease finance basics, or alternatively work with an expert you'll see that you can actually determine when it makes sense to either upgrade, return, or renew any lease finance transaction.

Can our DIY lease financing business owner affect the final credit and structure approval of his or her transaction? The reality is that tougher credit standards are in place since the 2008-2009 global recessions. Therefore the industry focuses on creditworthy lessees- but the good news is that some basic structuring around any transaction can still make your deal happen. Issues such as term, pricing and down payment can be negotiated to the point where it makes sense for the lessor and your firm.

Working an experienced Canadian business lease financing advisor can ensure you get the best pricing, structure, and achieve the benefits you're looking for.

So, everyone’s talking about ' DIY ' these days. Why not invest some time in developing a solid relationship with a lease advisor? Success in asset leasing allows you to grow your company with the assets you require... today!






Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/equipment_finance_companies_lease_leasing_asset.html

Power Your Business Financing with Canadian ABL Services – Why Asset Based Lending Works

It's always about the bank. Well ... not always... It seems that Canadian business financing continues to evolve and Canadian ABL services via asset based financing credit facilities are slowly getting to the top of the popularity pile.

Why does this type of financing work well and why is it becoming the accepted alternative to traditional Canadian chartered bank financing? We think we know why.

Although it might seem that the Canadian business and economic environment changes quickly these days we maintain that for the last two or 3 years the one thing that hasn’t changed is the ability for Canadian business owners and financial managers to get ' traditional ' financing from those great folks at the bank.

Skepticism and bank regulations in Canada seem to eliminate more and more qualified business borrower’s everyday. So it’s a struggle and if you are a small or medium sized firm in Canada the ability to grow or change your business is difficult.

Enter ABL lending in the Canadian marketplace. This type (we call it non-bank) of revolving credit facility is the new ' band aid ' for almost any size business, filling the void between traditional financing.

So why an asset is based lending facility able to work for your firm when a bank facility might not even is attainable. We guess it’s about risk and reward, in that for the same or higher cost almost any decent sized business has the ability to qualify for ABL services and financing.

The other side of the coin is also that the whole approval process is often quicker, in that there is only one key agenda item to review - your assets. Typically these assets are receivables; inventory and equipment, with real estate a borrowing possibility also, included right in your asset based lending facility.

We speak of the ' power ' of ABL. The true power lies simply in the fact that the assets we mentioned that are used as collateral are margined significantly higher than in the manner that a bank would margin those same assets. So it isn’t your financial statements strength that has the power - it’s those ' assets ' within the financials!

The broad appeal of asset based lending also lies in the fact that it’s flexible, that the other side of our ABL power equation. Your firm doesn’t necessarily have to be profitable (it helps ... but not required) and even if you face current financial challenges and setbacks you are still eligible. Even special loans clients can use ABL to escape from the restrictive claws of a special loans environment.

So whats our bottom line - it simply that if the Canadian banking environment continues to be unable to serve the demands of fast growing or challenged business... well... ABL financing services will step in and nicely fill that gap.

Ultimately it still might be your business goal to obtain a ' traditional ' facility. That’s ok of course. In the meantime thought consider the true power of asset based lines of credit as a funding option that will meet all your financing needs... today! Speak to a trusted, credible and experienced Canadian business financing advisor to eliminate that uphill financing battle you've been facing.



Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/abl_lending_financing_canadian_services_asset.html

Canadian ABL Lending - True Success In Banking and An Asset Financing Loan

Are you enjoying life as a commercial borrower in Canada - We can't even imagine some of the answers to that question, although we have certainly heard a lot of the stories! Let's examine why a new breath of fresh air, ABL lending has become a favorite and very unique banking and asset financing strategy in Canada.

One of our favorite expressions these days is that the old ways don’t work anymore. As it relates to today’s subject we're talking of course about commercial banking facilities in Canada, and focusing primarily on firms that have challenges to raise working capital and cash flow facilities that work.

It often comes down to a comparison of the two types of financing, traditional Canadian commercial banking, and our favorite new kid on the block, ABL lending and banking. We use the term new but quite honestly it’s simply a Canadian business financing facility that hasn’t been heard of by many Canadian business owners and financial managers for a variety of reasons. Maybe some people prefer to hide a good thing and keep it secret.

So whats better, a ' regular ' commercial banking facility via a Canadian chartered bank, or ABL lending and financing via a true asset based line of credit? Regular commercial facilities are extremely focused on criteria for mutual success - we say mutual because we hope everyone agrees your firm and the lender both have to win. (By the way, we are on our clients side! in that battle)

Got what it takes for a Canadian commercial banking facility - you know the drill - you need reasonable leverage, no significant events that are negative in nature, covenants that are a combo of income statement and balance sheet based, - example: fixed charge coverage, etc!

But hey, what about ABL banking and asset financing - whats required there. . Are you ready? Just assets!

That’s the appeal of asset based banking and financing - it focuses almost solely on current assets, key categories being of course receivables and inventory. Where our commercial banking friends focus in a dramatically different manner in analyzing and funding your business the ABL focus is simply n asset monitoring, and ensuring you can borrow on a daily basis at the highest of advance rates based on real world values of your assets. Oh, and by the way ' strange events ' are fully allowed - so you have a challenge, an acquisition, a special loan situation, a year of bad luck .. You will still be forgiven by abl lending and banking.

Want to ensure you have maximum availability on borrowing against your assets on a daily basis - speak to a trusted, credible and experienced Canadian business financing advisor about an asset based line of credit that makes perfect sense for your company.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/abl_lending_banking_loan_asset_financing.html