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

The Best Tools and Resources for Equipment Finance and Asset Lease Success - A Canadian Leasing Equipment How To !

It's your call, but if your firm has ever experienced a challenged in purchasing an equipment asset it’s about time you understood the benefits and flexibility of equipment financing via a leasing strategy.

The reality is that for most Canadian firms not all benefits attached to leasing equipment will necessarily make sense for you, but your ability to capitalize and maximize on those benefits that do will save you potentially thousands of dollars.

Today’s business world is all about competition and your ability to acquire an asset lease allows you to win the battle against deprecation and obsolescence. Quite frankly though many firms actually acquire used equipment in a variety of asset categories and this part of equipment finance in Canada is a booming one. The recent 2008-2009 recession left a glut of assets in many industries such as printing, construction, etc.

When it comes to technology financing though new is probably better, and that’s where lease financing shines. When you consider the relatively short time span it takes to arrange such a lease it often becomes a true advantage over a loan or bank term loan scenario .

Clients often ask what the ' entry points ' are to leasing in Canada. Frankly assets from three thousand to the millions are leased everyday in Canada - the bottom line is that equipment finance doesn’t discriminate against size. Stats available in the U.S. and Canada suggest that over 80% of firm lease equipment at one time or another.

Is there one constant driver in the search for great asset lease solutions? We think that more often or not it’s limited capital. Clients seem to feel that the most efficient use of their working capital and cash flow is the ' driver ' for their search for leasing equipment options. And as we said, that goes from hi tech, to low tech, whether you are financing newest computer and software technology, or refurbishing plant and equipment or transportation ' rolling stock' type assets.

As a Canadian business owner your preference is for choices. Asset lease transactions provide you with those! Focusing on either the type of lease you are acquiring, the need for a specialized term (leases generally are available for terms of 24 months to 7 years - depending on the asset and your firms overall credit quality.

Many smaller and medium sized firms don't take advantage of operating leases when considering the equipment finance option. This strategy can lower your payments, perfectly match the use and term of the equipment to your needs, and create balance sheet and accounting enhancements that will allow you to acquire the latest technology without taking on long term debt.

And don’t forget our friend ' Bundling ‘. Do you know him? Most business owners don’t realize that a lot of soft costs around an asset lease transaction don’t need to be paid out in hard cash. They can be in effect ' bundled ' into a transaction - typically these items include maintenance, warranty, installation, delivery, training, etc. That’s true flexibility.

If you want to be on the cutting edge of asset acquisition in today’s competitive environment then speak to a trusted, credible and experienced Canadian business financing and leasing advisor who can ensure a structure and approval that makes sense can be completed in a timely manner to your firms advantage.



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.parkavenuefinancial.com/equipment_finance_leasing_equipment_asset_lease.html

The Greatest Question Ever Asked About Canadian Equipment Finance and Leasing Companies - Let Your Company Join In!

It was a September night in 2002 - I will never forget it... the clouds rolled in ominously from the mountains as we drove... I strained to see the lights of home in the distance. Holley, my stepdaughter, 7 years old at the time turned to me and said ' I don't understand rent ‘. Wow I thought, great way to phrase that one! It's a true story. (Editors note - the clouds weren’t really ominous - he is using literary discretion)

Fast forward... 2011. Her better question today might be ' I don’t understand why hundreds of millions of dollars of equipment finance occurs every year in Canada.

Well if you didn’t know we're about to share that , and more importantly focus on highlighting some key issues around why all your competitors utilize equipment finance as part of their overall business strategy . And also, once we get you to ' buy in ' to the subject then we'll show you where to find the leasing company that works for you, not against you.

So why do start up, small and medium sized firms, and mega corporations utilize equipment finance companies to procure and finance their assets. One key reason is the emphasis placed these days on working capital. To finance the type of capital expenditures you need to stay ahead of the Jones’s (that’s your competitors by the way) you need access to credit and capital. And that capital varies in size, that’s the true beauty of equipment finance - it covers a 5k photocopies to a 20 million dollar aircraft.

And yes, it’s a free country, so feel free instead to dip into your operating line of credit of wait for A/R to be collected to acquire these much needed assets - but we can assure you the rest of the world instead has opted for equpment finance as an acquisition strategy. A harsher reality is that if you are a smaller company or start up you can't or don’t want to dip into additional equity for much needed new assets.

We will never not say the bank wont finance your equipment - but that financing, just to be clear becomes a term loan , and further ' complicates ' your banking arrangement , potentially adding new covenants, new collateral required, and diminishing the ability to get more working capital and cash flow down the road, when you need it .

So is there a real benefit in creating a ' relationship ' with either trusted Canadian equipment financing advisor or a leasing company directly?
Again, the ' ayes' have it; we absolutely feel that’s the case. Why? You benefit from the advice, counsel and structuring that can save you hundreds, thousands, or tens of thousands in financing costs, option flexibility, and tax benefits. Those are real world dollars we are talking about.

In fact, many clients opt to set up a lease line of credit, utilizing either capital leases or operating leases on an ongoing basis for asset or technology turnover. That’s when you have totally bought into the concept of lease finance. It in effect becomes your long term stated asset acquisition strategy.

How do you identify the best advisor or leasing companies to work with? Look for specific experience, credibility, references, and a track record of matching your equipment finance needs to rates, terms and structures that make sense.

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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/equipment_finance_leasing_company_companies.html

Considering Equipment Finance in Canada ? – Why Equipment Leasing Is Your Finance Advantage

Want some good news ? - Your firm has the ' home team advantage ‘. That common sports expression we think pertains to business when you are making use of all the advantages of equipment finance and equipment leasing for your Canadian acquisition needs.

A lot of the advantages of leasing are constantly being talked about - if you don’t know them by now it sounds like you are considering lease financing for the first time. Sitting down with clients it always becomes apparent to us that of all those advantages, and they are numerous, cash flow is often the most significant benefit to business owners and financial managers.

So, is cash flow still the ruling king, as we have heard it always was? Definitely, because when you utilize equipment finance solutions you in effect have created your own new line of business credit. And the restrictions, covenants, outside collateral, and all those other things you associate with a bank or term loan seem to suddenly have gone away with your equipment leasing solution.

Is leasing versus buying also considered a key advantage? That’s a question clients always ask. The reality is that there are somewhat complicated accounting, tax, and depreciation calculations that come into play on that issue - more often than not we think it’s a bit of a wash in our opinion. However, depending on the actual type of lease you use there could be some immediate apparent advantages.

For example, choosing a residual type lease, also know in the industry as an operating lease gives you the chance to experience a lower payment advantage, and lower payments are always a good thing ,

Want to devote a huge piece of your life to getting a term loan or bank financing arrangement in place for your new equipment. By all mans go ahead - but our clients have already beat you to the bunch, and we sure hope they are not your competitors, because they obtain lease approvals in a matter of a couple days - Canadian equipment finance leases are approved in a much more expeditious manner .

There is a term in business finance revolving around the concept of matching long term assets to long term debt. Simply speaking, using an extreme example, you wouldn’t use your entire business line of credit to purchase a plant equipment asset that might have a useful life of, say, ten years. All of a sudden the use of the operating facility for the purchase has totally eliminated your day to day operating cash flow, which is typically used to pay employees, repay loans, purchase product, etc.

And getting back out our old friend cash flow, the true flexibility of leasing, is that those payments you need to make can be structured flexibly around seasonality of your business, as well as the matching of the payment to the useful economic life of the asset .

So, in summary, how can you get the equipment finance advantage in Canada? Speak to a trusted credible , and experienced Canadian business financing advisor who will assist you in ensuring you have the right lease, a prompt approval, and rates terms and structures that match you equipment leasing needs . That then, is your home team advantage!

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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/equipment_finance_equipment_leasing.html