Don’t Tell Anyone But Here’s Six Points And Strategies For Dealing With Business Equipment Finance Companies For Leasing Success

Here’s How To Make Your Best Leasing Deal In Canada

Information on issues that Canadian business owners need to address to achieve success equipment leasing and asset acquisition with business finance companies


Thousands of Canadian business owners and financial managers turn to equipment leasing in Canada for asset financing.

We can safely say that this method of Canadian business finance can be a simple or as complex as you want to make it. Our goal is to ensure you consider don’t consider an equipment lease simply for the fact that you might feel you don't understand both the mechanics and advantages of this type of Canadian business financing .

Not all benefits might accrue to your firm when considering a lease, but you sure want to be able to maximize the tangible and intangible benefits oi those that do .

It's important to consider the entire lease process as a bit of a ' journey ‘, and when you are armed from start to finish through the whole process your probability of successful financing increases . And we can't over emphasize that just by knowing which parties you should be dealing with will give you a more favorable transaction success.

Let's go through a short 6 point check list of what you need to know to address lease financing success.

Point # 1- Be in a position to properly identify the type of asset and its cost when sleeting your lessor. Identifying the manufacturer, model number etc is critical to business finance companies that may or may not specialize in certain types of assets.

Point #2 - It’s always best to have a formal quote or pro forma invoice for the lessor. Remember the the ultimate invoice, because you're considering leasing should show that the invoice to is the lease company, and the ship to is in fact your firm. Another key point is that lease firms don't negotiate your final pricing and terms with the manufacturer, you do!

Point # 3- Payment to vendors is a critical issue, Always ensure those payment terms are understood by both your vendor and the lessor. That includes the currency component, and whether any sort of pre - payment prior to shipment is required. Good business finance companies and leasing firms are happy to correspond with your vendor and indicate you have been approved.

Point # 4 - Ensure you have a proper approval timeline in place. In some cases lease and busines finance companies have expiry dates on approvals. Complex assets might require additional time for ultimate delivery to your term.

Point # 5- Equipment leasing companies are asset financiers; it’s as simple as that. Don't ruin your relationship with such a firm by not clearly identifying where the asset is, both at inception of lease and during the term!

Point # 6 - Here is where the rubber hits the road on benefits of equipment finance. Simply speaking, make sure you understand the type of lease you require. In Canada that boils down to a capital ' lease to own ', or an operating ' lease to use '.

You can spend a hundred hours understanding some of the complexity around tax, accounting, end of term, and financial consequences of each of those lease types. This then becomes a great time to consider the assistance of a trusted advisor such as your accountant, lawyer, a peer/mentor, etc.

Speak to a trusted, credible and experienced Canadian business financing advisor to ensure you are on track, right from the ' get go ' for equipment leasing success.




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/equipment_leasing_business_finance_companies.html

Which Equipment Leasing And Lease Finance Options Suits Your Firm For Canadian Asset Financing? Does a Loan Make Sense?

Make The Right Asset Acquisition Decision

Information on equipment leasing in Canada . Canadian business owners have two lease finance choices when utilizing asset financing lease and loan strategies .




Did you hear the one about the Canadian business owner and financial manager who couldn't make a decision when it came to equipment leasing and lease finance options. Actually, we're quite sure that same conundrum faces hundreds, perhaps thousands of business owners in Canada when it comes to selecting an asset financing strategy that works... especially for their needs.

Let's examine some of those options and help you out in two clear phases of business financing decisions - the lease or buy decision, and of course picking the right lease finance option if in fact you have made that decision to move forward with one of Canada's most popular financing strategies.

So, lease..? Buy? Which one works for you? A good rule of thumb is to first consider what we can call the useful life of the asset when facing that decision. An even better rule of thumb is to think of purchasing outright if you have a strong level of confidence that the asset will last beyond a typical financing term. In Canada equipment leasing terms, (aka amortizations) are typically 2 to 5 years. (Make that 20 years if you are purchasing a corporate jet, but that isn’t really an everyday purchase!)

So that’s the ' buy ' decision. What factors can impact your decision to purse a lease finance strategy. Here our rule again is somewhat common sense oriented (we love common sense). If you think you wont use the equipment for the after a typical financing term, or if you think it might needed to have an upgrade or an add on then certainly consider an asset financing option via equipment finance leases.

Naturally there are advantages to each of our two lease and buy options. Let’s examine buying first. Purchase decisions, if done via a loan option, typically have blended payments of principal and interest and are simply spread over the life of a loan.

Although loan financing can in some cases be on a 100% basis you typically might be expected to make a down payment, in certain cases sizeable. That down payment of course lowers your monthly loan payment amount. Purchasing an asset outright, or using a term loan keeps the asset on your balance sheet, enhancing your overall fixed asset based. In many cases you can take advantage of depreciation and tax scenarios to enhance the ownership of an asset.

Lease financing. The benefits are somewhat ' classic ' in nature. In the majority of cases the asset is 100% financeable, with down payments being minimal. You have just completed a great obsolescence hedge, especially when acquiring tech type assets - think computers, servers, cloud financing, etc.
Don’t let the lease or buy decision confuse your asset acquisition strategies. Speak to a trusted credible and experience Canadian business financing advisor who can assist you with your business finance needs.




About the Author: Stan Prokop - 7 Park Avenue Financial


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

10 Considerations For Equipment Leasing and Lease Financing In Canada – From Start to Buyout !

Use This Savvy Expertise To Master Equipment Lease Success For Your Company


Contrary to what Canadian business owners and financial managers might think it’s not always about the approval and the rate in lease financing in Canada. Let’s look at ten (yes ten!) other things you need to consider, from the start of an equipment leasing transaction to the end or buyout!

There a number of terms and issues that play a key role in the overalls structure and proper documentation of an equipt. lease in Canada. In some cases they should be viewed as your rights, in some it’s critical you understand your obligations.

Let’s dig in. In Canada the customary point of a starting to an equipment lease is essentially when you the lessee have signed off on an acceptance certificate. Your signature on that document should mean that you are prepared to start payments on the lease, which in Canada typically range from 36- 60 months, with some exceptions based on asset type and your overall firms credit quality. By signing the acceptance it’s critical you understand that you have deemed the asset in good working order, as often times the lease company is not the vendor you have worked with, they are just the financier.

Lease terms as we said are typically 3-5 years in Canada. Many clients fail to recognize they sometimes have flexibility in adjusting payments to a quarterly or semi annual basis - dont always think in terms of monthly payments when you are adjusting your cash flow budgets.


In many instances, certainly for larger transactions you may be asked to provide a certificate of incumbency on the transaction - simply speaking that’s just your firms statement that the signing officer on the lease can obligate the company for this particular transaction.

Warranties on an equipment leasing transaction in Canada. As we stated in the majority of cases, unless you are dealing with a captive finance co owned by your vendor the lease company is just financing the transaction - so they are concerned solely with payment, not functionality of your asset. So ensure you have a solid understanding with the vendor on maintenance, warranties, etc., because; ask we said, these often should not involve the lease financing firm.

Although your asset is leased you should consider that it be properly maintained. In certain asset categories you might be asked to adhere to a specific level of maintenance, also relating to the fact that on return of the asset the lessor might in fact re lease or sell the equipment.

We aren’t big fans of leasing companies in Canada placing ' stickers' or other asset ownership references on the assets you lease. In some cases lessors might insist, but in general we feel clients can negotiate strongly on this point, especially if your firms overall credit quality is strong.

A certificate of insurance is generally required for any equipment leasing transaction, or even a term loan, in Canada. Your insurance broker will typically be very familiar with a standard form that lists the lease financing firm as ' loss payee' in the even of any unfortunate incident, i.e. fire, theft, etc.

End of term. Only a three word phrase but boy is it important in Canadian equipment leasing financing. These three words can make or break you when it comes to ensuring the lease transaction you entered into brought benefits to your firm. The basics around this issue are as follows - ensure you know how to terminate the lease from a legal obligation point of view. If you have entered into an operating lease understand clearly your ability to terminate, return, extend, or upgrade. In technology financing this is all important, but equally important to other asset categories also.

In Canada some lease companies will want a right of first refusal on all your business. We'll be very clear on our feeling on this issue - simply they should have to earn this right, not demand it! Enough said!

In certain instances you might want to be in a position to assign your lease, prior to the end of the term. Typically this is negotiated up front, and requires simply that a credit worthy other entity be prepared to pick up your rights and obligations. Because of how lease financing companies are funded in Canada you might often find your own firm as the recipient of a notice of assignment by your lessor - the bottom line - nothing should really change as your rights still remain under and assignment unless you have agreed otherwise .

Well, that’s it. A lot of issues, some important to your firm, others less so. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with rates, approvals, plus the number of other issues we have detailed than can make or break equipment leasing success in Canada.


Stan Prokop is founder 7 Park Avenue Financial ; see

http://www.7parkavenuefinancial.com

Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 7 year old firm has completed in excess of 80 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:

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

An Unequaled Equipment Leasing & Commercial Financing Option - Your Best Canadian Deal

Can we be honest with ourselves, as Canadian business owners and financial managers and all agree that when it comes to equipment leasing and financing of commercial assets we are all looking for the best deal?

It's just human nature, but the reality is that the thousands of dollars you can save in real money by obtaining a lease approval at great rates, terms and structures also keeps us competitive and ahead of the game .

Let's examine some of those methods used to fast track you to the best options available -including probably our most important tip, which is where to go to and who to talk to when looking for the best equipment leasing and financing . More on that later.

Cost savings, as well as cash flow and working capital savings. That's the essence of Canadian equipment leasing and financing we think.

Leasing has been around a lot time, some maintain thousands of years, but a couple of factors have brought it pretty well to the top of Canadian business financing these days. One reason is simply that with the recession formally over (we read it in the newspaper, must be true) that thousands of companies are again looking to expand and grow again, finally!

Also another reason is that new industries have sprung up that are tailor made for lease finance, and those industries (energy, solar, etc) are poster boys for solid lease finance strategies. Commercial lease financing adapts perfectly to technologies that change and need to be upgraded. Most business owners know you have two lease finance options, capital leasing and operating leasing. Structuring your transaction around an operating lease gives you flexibility on your ability to upgrade, return, or extend the transaction at the end of term.

When it comes to a ' pure dollar ' or ' financial' analysis of equipment leasing most Canadian business owners quickly realize that to make a project financially feasible the benefits of the asset or project have to match the cash flows . And financing your transaction via a commercial lease with fixed monthly payments matched to the economic benefits of your asset clearly does that.

Your company’s ability to conserve cash flow and working capital allows you to put that new found capital into what really counts, i.e. inventory, staffing, new systems, etc.

There isn’t a day these days when a client asks ‘Can such and such an asset be leased ' - and we think you know already our answer to that one - that almost any asset can be leased, even intangibles such as software. More often than not , depending on your overall credit quality lease financing is a 100% financing scenario - on occasion , if your lease has to be structured it might require a down payment .

So who is providing lease financing in Canada and how can you get this unequaled business flexibility in commercial finance. The reality of the Canadian market is that its very fragmented, made up of captive firms within large mfg companies, as well as independent finance firms that are both U.S. and Canadian owned.

Rates vary with asset and credit quality, and the hard reality of your transaction is that it has to fit the particular, let’s call it a ' credit box ' of the firm you are dealing with. Even some of the banks have full fledged lease companies , although the credit criteria is significantly higher as you can imagine - i.e. great rate, but significant qualifications required on your part .

So how do you wade through the mass of firms and financial offerings in the Canadian marketplace .Would that take hundreds of hours, which you don’t have. The answer, speak to a trusted, credible and experienced Canadian business financing and leasing advisor who can structure a transaction that meets your needs. Simple, fast, and allows you to benefit from those unequaled asset financing options. What are you waiting for!


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_financing_commercial_best_option.html

Breakthrough The Canadian Equipment leasing And Financing Barrier - Business Leasing Strategies That Work!

Its official - your company is on the road to recovery in the Canadian business landscape. So how can you use equipment leasing and financing as a new economy strategy? Let’s share some tools and strategies for Canadian business owners and managers, allowing you to maximize business leasing dollar benefits.

The economic havoc that wrought business financing tension in 2008-2009 appears behind us. However, the cost of, and access to credit remain two key issues in Canadian business financing.

Equipment leasing allows you plan carefully for growth. Think of all the uncertainties you have in either replacing or purchasing a new asset. Those key uncertainties are things such as cost of the asset, the obsolescence issue, concerns around asset acquisition negatively impacting your working capital, as well as competitive pressure.

Any of those issues might seem insurmountable if you didn’t have a business leasing alternative for asset acquisition.

Many companies in Canada have not thoroughly investigated the use of operating leases as a business leasing and financing strategy. This strategy alone can give you a triple weapon to beat the cost of assets, the cost of financing, and, as we noted, that pesky ' obsolescence ' issue.

So how does the owner of CFO implement such a strategy? We're the first to admit it works best on technology related assets, i.e. computers, telecom, etc. Let your Canadian equipment leasing company take the risk by your careful creation of an operating lease. This transaction is very powerful... why? .. simply because your payments are lower, your monthly rentals are fixed , the overall cost to finance a depreciating asset is less, and last, but not lease, it you who make the call at the end of the lease term on owning, returning, or extending your transaction !

It should be obvious to any business owner or CFO that you can’t break through and business financing barrier if you don’t know who you are dealing with. There are tens, hundreds actually of business leasing firms in Canada.

Want to waste a lot of your valuable time? If you do then don’t investigate the type and size and credit criteria of the lease firm you are dealing with. That’s not our recommendation however! What you want to do is ensure your asset and your financial situation is matched with a firm that perfectly suits your equipment leasing needs. So that can be a small ticket item, a complex technology strategy, or a used piece of heavy construction equipment. Bottom line; know you lessor re asset type, credit criteria, and flexibility re structuring.

Hers a simple breakthrough strategy - simply make a list of whats important to you in your leasing financing decision - key items might be capital conservation, payment flexibility, enhanced structuring , a la off balance sheet, etc . Any one of those items, properly completed, can save you thousands of dollars on a transaction.

Business leasing is back in demand! Your competitors are for sure utilizing business leasing. Your company is unique. So whether your reasons to finance are technological, financial, convenience related, or hard core economic - (i.e. diversifying your borrowing) don't dismiss your ability to achieve breakthrough financing via equipment leasing in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor for some of the best business financing advice you will ever receive on business leasing.

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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_leasing_business_leasing_financing.html

Don't Let ' Good Enough' Be Acceptable In Canadian Equipment Leasing When Structuring A Business Equipment Loan or Lease

Is ' good enough ' acceptable to your firm when you are looking at equipment leasing and arranging a business equipment loan or lease in Canada. We don’t think so and we'll share some fundamental info and strategies that take your business financing to the next level when it comes to benefits.

You have arrived at the lease or buy decision base on your need for new fixed assets for your business. Financing those assets out of regular cash flow, or entering into cumbersome bank loan arrangements isn’t an option.

The use of the asset over the long term should be what drives your financing decisions. Longer term assets require long term financing, and that's what equipment leasing is all about - matching the useful economic life of your asset to your cash flow and financing structure.

We encourage clients to take a hard look at lease term. Don’t let our ' good enough ' statement overtake your decision to properly match he asset term. Many lease firms that are focused on offering one type of term, or one type of lease (there are two types) are going to try and sway you towards their product or service offering. If there were only one lease company in Canada that would be problematic - fortunately there are hundreds!

Business owners and financial managers need to separate. What do we mean by that ?W mean that you must separate the manufacturer and the price of the equipment from the financing . If you are dealing with a mfr that is also the financier of your asset make sure you maximize the benefits of that type of financing, known as ' captive financing ' as its often the best available in terms of rate term , an structure .

The lease financing industry preaches ' 100% ' financing for your business equipment lease and loan needs. The reality is though that often times a down payment of security deposit is required. Make sure that request is reasonable, and competitive, don’t fall into our ' good enough ' scenario of having to accept every term or down payment that is specified in your finance offer.

Structuring is what lease financing is all about. Be armed with a cash flow analysis that makes sense for the type of asset you are acquiring. Remember, if you don’t ask or request a ' vanilla ' or typical lease solution will be offered up - you don’t have to accept that if your cash flow needs, business seasonality, or term of the lease are particular to how you want to benefit from lease financing.

Let's take a quick example - let’s say you are leasing a 100k computer system. The lessor offers you a 5 year lease based on your firms overall credit quality, and requests a 20% down payment. and specifies payments of 1685/mo . Did you know that in many cases you could get the same lease payment for a 3 year term, saving you two years in payments? That’s by utilizing an operating lease and shortening the term. Again, back to our point, don’t let ' good enough ' be your only choice in asset financing.

In summary, every firm in Canada has unique financial needs, and you need lease financing payments, terms, and structures that work for you. Don’t accept ' good enough ' in business financing. Speak to a trusted, credible and experienced Canadian business financing advisor on how you can truly maximize financial benefits of a business equipment loan or lease.

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

Reasons and Advantages For Using Equipment Leasing For Your Business Finance Needs in Canada

How could thousands of companies be that wrong ? We are pretty sure the weight of evidence suggests equipment leasing for your firms business finance needs is a solid financial solution.

Let's examine a couple of key basics around equipment financing and why asset acquisition under this method of financing is a solid cash flow management solution.

So, why do firms lease, including of course your competitors. Yes, arguably it’s for tax reasons, as well as the whole issue of obsolescence, but we find it always comes back to cash flow management, not using your valuable day to day working capital, as well as the difficulties perceived by many businesses in arranging loan or bank financing. All in all, some pretty powerful reasons we think!

Many industry finance trade associations provide data that sooner or later almost 80% of all companies in Canada use equipment leasing in some manner for their business finance needs. And there’s no discrimination, from the largest firms in Canada to small start ups, all types of companies use this financing. In the case of small businesses it’s more often than not because of limited capital, and in the largest of corporation’s issues such as depreciation, off balance sheet needs, and budget cycles all play key roles in equipment financing.


We use the term equipment financing, because it’s an all encompassing term, but in reality every type of asset can be financing, and that includes technology, software, plant equipment, office equipment, we think you get the idea - anything can be leased based on the overall credit quality of your firm. That also brings up the point that most business finance people quickly understand that equipment leasing approvals are probably easier to arrange than any other type of financing.

Businesses love ' options' for their equipment financing needs - business owners and financial managers want to know they have flexibility. That’s where lease options such as full payout lease to own leases, or operating leases offer maximum flexibility, based on your business needs. Using financial leases for long term capital equipment needs is a daily strategy for Canadian business financing.

The costs to lease are varied. The factors that play a role in the ultimate interest rate and payment factor depend on key issues such as your firm’s credit quality, potential outside collateral if that’s required, willingness of the owners to provide a guarantee, as well as the lessors opinion of your historical and projected cash flow. Quite frankly the main question lessors always ask themselves is simply - ' Will this asset product profit for the lessee".


In summary, the key advantages of equipment leasing are its ultimate ' convenience ', the flexibility around the types of leasing you require ( lease to own or just rental , use and return ) , tax and accounting advantages, and , oh yes , ease of getting approved!

If you want to maximize those equipment leasing advantages then seek a trusted, credible and experienced Canadian business financing advisor who can guide you through key issues such as what benefits work best for your firm, what type of lease company best suits your asset acquisition needs, as well as the ability to save time in today’s faster paced business environment.
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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_leasing_business_finance_needs.html

Where to Turn To For Equipment Leasing And Commercial Lease Finance In Canada

The leasing industry in Canada has historically been dominated by a number of different types of entities that provide equipment leasing and commercial lease finance to Canadian business.

The types of firms that are the key players in lease financing in Canada can be broken down into the following categories:

Life Insurance Companies

Credit Union leasing firms

Third party Independent Finance Companies - Canadian owner

Third party Independent Finance Companies - Subsidiaries of American firms

Captive Leasing Companies

Bank Leasing entities - Subsidiaries of divisions of Canadian banks

We would venture to say that probably 90% of Canadian business owners and financing managers think of ' Third Party Independent Finance Companies ' when they are looking to source lease financing for their equipment and capital expenditure needs.

Canadian chartered banks have moved in an out of the Canadian lease financing industry over the years. Currently only two the Big 6 Canadian banks have full fledged separate lease entities that actively market lease financing to their customers. In our opinion the reasons customers choose a bank lease financing entity are as follows;

Pricing

Existence of a Current Banking Relationship

Dollar size of transaction

Let's elaborate a bit on those points. Because banks are in the position of having the lowest cost of capital in Canada for business financing rates on bank leasing deals tend to be excellent. On average we would observe that rates on larger deals tend to be 3-4% over the Canadian prime rate. This is excellent pricing, as independent firms tend to price at 4 to 5 to 6% over the Canadian prime rate. That is on average of course because every customer's credit quality and situation is unique.

Business customers have bank lines and term loan arrangements with their bank. So it is a natural logical extension that they would discuss their needs with their banker, who may, or may not be able to offer a lease financing solution. We indicated that only two of Canada's chartered banks have full fledged lease entities. Some of the other banks have leasing division, which are much smaller and more specialized in size, and some banks choose to ' partner ' with third party independent finance firms that are both Canadian and U.S.owned.

We also referenced dollar size as a key factor in a customer choosing a banking lease arrangement. Banks in Canada have virtually unlimited capital, so they certainly can choose to finance any amount they choose. We say unlimited capital, that is a bit of an exaggeration but Canadian banks are currently viewed as some of the strongest in the world re their own credit ratings and capital ratios.

Banks are traditionally a bit slower to enter into the lease financing area, and banks use the function in some respects to develop new corporate banking relationships. In fact we have observed that in the 2009 and 2010 banking environment in Canada the bank lessor in fact attempt to develop a full corporate banking relationship with customers who approach them for lease financing needs.

Leasing is a good source of profit for the banks - the banks tend to make solid credit decisions on assets and corporate credit quality, and lease pricing provides some nice yields compare to some other parts of their business.

Some banks in Canada have, in the past, purchased some of the private independent Canadian lease companies that were getting large and successful or had a specialized market or geographical niche... Banks are often quick to sell portfolios and eliminate leasing divisions when they feel that market conditions suggest that.

In summary, the Canadian equipment leasing and commercial lease finance landscape is made up of a number of market participants. Banks play a key role, but not a dominant role in the industry. Lease financing via a bank is often a relationship driven arrangement with the business customer's current incumbent bank. Banks who participate in equipment leasing finance f have excellent rates but higher credit and asset requirements.

Business owners looking for the best rates, terms and structures are cautioned to source the assistance of an experienced, trusted, and credible Canadian business financing advisor to determine which leasing arrangement (bank or non-bank) is best for their needs.

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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_leasing_commercial_finance_lease.html

How Financing Options In The Canadian Equipment Leasing Industry Can Benefit or Harm Your Overall Profitability When You Lease Equipment !

As a Canadian business owner and financial manager you need to investigate your financing options when you lease equipment. Equipment leasing provides you with a combination of rights and obligations.

One critical area is the type of lease you choose and any residual values associated when you lease equipment .These residual values may represent an additional significant profit to the lease company in the transaction. Are there ways you can actually profit from the type of lease you choose? We think there are, and we will demonstrate how

The residual value is a solid portion of the lenders over all ' return ' on the transaction. Again, lessor return often equates to lessee shortfall, and you are the lessee!

So what is that residual value? At the end of the term of any lease there are options that any savvy borrower should both negotiate and understand. If You enter into a ' true operating lease ' then you have the option to return the equipment to the lessor (or maybe it is the manufacturer itself) when the lease transaction has terminated. Many major manufacturers of equpment, computers, etc have large in house leasing divisions which are profit centers for their financing options they provide customers.

When the equipment is returned the lessor re-sells the equipment, or in some cases actually rents or leases out the equipment again, obviously on a ' previously used ' basis. In the construction or aircraft industry assets can be used as long as 10- 20 years!

Borrowers need to understand that the potential profit the lender/lessor realizes on a transaction hinges significantly on the final value of the asset at the end of the term.

Let's use a simple example. If a customer purchases something for a value of 100.00 and wants to lease it the lessor will perhaps estimate that the equipment will be worth 10% of its original value, or in our case, $ 10.00 at the end of the term of the lease. He will often base his rate on the expected recovery. Naturally the lender could receive more or less at the end of the lease term - he bases his price and interest rate accordingly.

Borrowers therefore might want to significantly investigate the residual value being contemplated in this type of operating lease transactions, and, in some cases, invoke their right to buy the equipment at the end of the lease. It could in fact be resold for a profit if the company has a strong sense the asset will maintain its value. Again, think aircraft and construction equipment in the equipment leasing example we used.

Naturally lease companies want to earn a profit - the question becomes what a reasonable profit is and is at your firms expense.
Speak to a trusted, credible and experienced Canadian equipment leasing advisor who can provide you with real financing options when you lease equipment that make sense from your perspective, the borrower!
--
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_leasing_financing_options_lease.html

Considering Canadian equipment leasing ? What Leasing Companies Offer The Best Equipment financing

We know you're only mildly interested in the technical aspects of equipment leasing in Canada. The reality is that your best rates, terms and structures in equipment financing are going to come from leasing companies that are your best choices for financing your assets.

Let’s examine some of the key issues you need to look at to obtain the things that are important to you when you are financing assets, and that includes best rates also!

The trick isn't knowing about all the benefits of equipment leasing from a technical perspective, your accountant or lawyer could do that for you - whats important is your ability to figure out which benefits makes the most sense for your firm, as they rarely all pertain to just one transaction .

It always comes down to flexibility in your equipment financing needs. That’s what Canadian leasing companies are about. However, the good and bad news is that there are hundreds of firms that offer equipment financing options. Which one is good for you? The reality is that is a needs versus offering scenario. Simply speaking what you are looking for in asset financing is not offered by all firms - you need to know that. Why? Simply because each firm specializes in a few key areas.

A leasing company is all about several things - they include - their geographical location , the size of transaction they are permitted to do, the type of lease they offer ( there are two in case you didn’t know ) and the credit quality they are prepared to accept to approve your acquisition of business equipment .

So, how do you address the issue of which leasing companies would work best for yourself, either in a one of transaction, or on an ongoing basis? All you have to do is to examine their product and service offering, understand which of the two lease types they offer, and determine if your firm satisfies their credit criteria. Would that take time? We can safely say it would take you many hours of your time, a lot of it easily wasted if you are talking to the wrong firms.

So, whats the solution. We recommend you speak to a Canadian business financing advisor who is trusted, credible an experienced. Their knowledge of the market and the participants is going to fast track you to equipment financing success.

And never lose sight of those benefits and flexibility we spoke of - they include payment flexibility and structures that meet your business cash flow needs. Also, be aware that almost any asset can be financed based on your business needs. You shouldn’t use you lawyer or accountant to find you that lease partner, but they can sure help on documentation and tax issues on the transaction that will prove beneficial to your firm.


In summary, you need to consider what lease benefits makes sense to your company, and who can offer them to you. Maximize your management time and work with a trusted expert and advisor who can assist you in comparing solutions you can commit to and benefit from. That’s what Canadian equipment leasing is all about!
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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_leasing_equipment_financing_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

Is The Wrong type of Equipment Finance Company Bad For ( Business) Health?

They are all the same, aren't they? Absolutely, postively... Not! We are of course talking about the equipment finance company industry in Canada and how your selection of the right partner can determine which advantages and disadvantages you can enjoy... or suffer with. We prefer positive advantages that your business can benefit with, not Canadian business financing decisions that you will suffer via the wrong choice of a lease partner for your specific needs.

Ok, so what in the heck are we talking about? Essentially there are four types of asset finance partners in the equipment leasing industry in Canada. And you thought that a lease finance company was a lease finance company!

The first type of partner is the ' captive ' - no you are not the captive! The term refers simply to finance companies that are owned and literally situated within various manufacturing firms. When clients ask us about lease finance options and they mention specific equipment we are always reminding them to ensure they determine if the manufacturer captive finance firm offers asset financing. If they do we can assure you it is probably the best financial terms you will be able to come up with, as well as a better chance for overall approval re rate, structure and other general terms. Why is that?

It's to do with motivation - the captive finance firm is motivated to finance and promote the sale of products using financial options such as leasing to get the products out to the marketplace. Want to know a secret that should surprise most business owners and financial managers? It’s simply that captive finance firms in a competing industry will finance their competitor’s products, often at better rates, terms and structures. That is simply because the financial transaction will probably give the competing mfr a foothold into your business to promote and sell their own products. So don’t think that a great firm such as IBM CREDIT CORP. is the only firm that will finance your products you purchase through them. Others will also!

The second main group of asset finance firms in Canada is our chartered banks - Two major banks have leasing arms that are very significant, others employ lease finance to varying degrees. Our real only comment here is that the credit bar is high and more often than not you have to be a customer of the bank to enjoy the great lease and finance structures they offer.

The third main category of the Canadian equipment leasing company market is actually the largest and most robust. It also requires the maximum amount of knowledge and navigation by Canadian business owners and financial managers. This is the Independent lease finance market, where there are tens of firms that offer lease financing based on various criteria of asset size, credit quality, geographical preference, industry specialization, etc,etc,etc . R

You have a great choice with our category 3 partners, the independent finance companies. You can spend tens or hundreds of hours determining their credit criteria, additional collateral they require, the size of deals they do, the different lease structures they offer, or ... alternatively .. use our final category for lease provider , the independent lease finance advisor who are knowledgeable intermediaries who know the market, have a strong reputation with lease providers, and can match the advantages you seek in an equipment finance transaction to the right provider . Subtle nuances in your overall lease structure, depending on the size of your transaction, can save you thousands of dollars and untold grief at the end of the term of your lease.

So that’s your Canadian lease market overview. Speak to a trusted, credible and experienced Canadian business financing advisor who can successful guide you through the asset finance maze.
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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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/equipment_finance_company_asset_finance_leasing.html