Is A ‘ Good Enough ‘ Equipment Loan & Finance Lease Better Than ‘ Best ‘ For Canadian Finance Lease Needs ?

We're pretty sure, in fact very sure, that ' good enough' is not the attitude you take in any aspect of your business or business financing needs. Settling for 2nd best in today’s competitive environment is not a recommended strategy! So let’s look at how you can achieve some of the best leasing and financing equipment loan strategies for finance lease success in Canada.

New assets are always a challenge for acquisition when Canadian business owners and financial managers assess their respective financial positions. The price and therefore how you will finance these assets is of course critical to your overall asset acquisition strategy.

So when it comes to reducing cash outflows and in effect saving monies via a financing strategy is any wonder why over 80% of Canadian businesses utilize leasing financing as an integral part of their finance strategy.

But the reality is that many owners and managers don't understand the make up and the competitive offerings that make up the Canadian equipment loan and lease landscape. Even more importantly just understanding the rights and obligations and options of different types of leases can save any business owner or manager thousands of dollars, depending on overall purchase price. Even more dramatically we can say that making the wrong decision can actually cost you significantly.

Let’s utilize a quick example. Let's say you are focused on the amount of monthly payment and want to buy a 150,000 computer and software package (yes, software can be leased). So you contact a firm who you think can give you the best monthly payment, and you find you are quoted and approved for a 5 year term, monthly payment of 3000.00$. A quick expert calculation will tell you that you will pay 31000$ in interest over that 5 year term at current competitive rates. Sounds ok?? Maybe, maybe not.

Moving on... what if we told you that you could finance that same system for 3500$ / mo for a 3 year term , and at the end of the term you could return, upgrade , or choose to extend the lease .
For only 500$ more you have shortened your term, recognizing that most computers don’t last 5 years. In effect you have utilized an operating lease strategy to effectively manage your assets - that’s a solid financing decision in leasing financing.

We have utilized a simple example of how you need to in essence separate the pricing and the purchase of the asset from the decision of how to finance that same asset.

We're the first to admit the leasing process can be perceived as complex in Canada. There are hundreds of equipment loan and finance lease firms. They have different ' credit boxes ‘- meaning simply you must fit into their asset, deal size, and credit criteria box. Additionally numerous firms tend to complicate matters by throwing arcane terms at you such as ' down stroke ' , ' security deposit ', 'capital lease ' ' off balance sheet financing ' ' admin set up fees ' .. Etc. And on it goes.

In summary, leasing financing in Canada has huge benefits. Billions of dollars of assets are leased every year. Your competitors finance their assets. And yes, you could very quickly go out and achieve a ' good enough ' lease.

Want a better solution though? Simple speak to a trusted, credible an experienced Canadian business financing advisor. ' Good enough ' will soon become best when it comes to sourcing and structuring asset financing that makes sense from a Canadian equipment loan perspective .

P.S. We knew you would never settle for 2nd best!





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_loan_finance_lease_leasing_financing.html

A Shortcut To Leasing Equipment And Business Finance Lease Solutions & Services In Canada

Isn't any shortcut in business better? As shortcut is of course a ‘method or procedure that reduces time or energy and still accomplishes something ‘. Is it just us but isn't any Canadian business financing shortcut absolute good thing, as well as an advantage over your competition?

We're going to cover off some great shortcuts for leasing equipment in Canada, and how the ability to get a business finance lease with the best rates, terms and structures becomes a financing services victory for your company.

Also, when you can add a host of other programs services and structuring that are uniquely suited to your business... well... clearly that’s a win.

Doesn't it make sense to know what you are looking for prior to going out to get it - that's our first shortcut tip - determine whether you need an off the shelf lease financing services solution, or whether a customized business leasing equpment solution is required . A simple way to achieve this shortcut is to focus on the 5 elements of a lease, and which ones need special attention for a finance lease based on your company circumstances.

What are those key elements - simply the term of the lease, the interest rate associated with your credit quality, the size of your transaction, the monthly payment your cash flow budget can afford, and finally the end of term option that again, best suits your firms needs.

That's a mouthful, but most Canadian business owners and financial managers don't realize they have the ability to influence, and in some cases negotiate some of the key five elements - thereby creating your shortcut to leasing equipment finance success.

Let's delve into that further. Let's assume you know the asset or equpment that you want - you've evaluated your requirements and want a financing services program that best suits your company.

Now its time to take work on getting the flexibility you need to maximize those financial advantages. They include of course full financing of your asset with minimal or no down payment, flexible monthly payments geared to your cash flow and working capital concerns, the ability to use off balance sheet financing if you need it , or even in many cases generate a positive cash flow by leasing back equipment you own already .

In many cases you can achieve a quick shortcut to lease financing approval by working with your lessor on a term that works for both of you - it has to be a win win situation. On your side you want to match payments to economic benefits of the asset you are financing... the lessor is more concerned with asset value deterioration and your overall all credit worthiness.

If you are generally familiar with the finance lease business and leasing equipment industry in Canada you know it consists of a multitude of players , they all have different ownership , some foreign, they have different asset needs, and their pricing they provide you with is based on , guess what, their own borrowing practices !

The shortcut to best pricing and best structure is therefore knowing what leasing finance firm has the best appetite and expertise to provide you with a business finance approval that works .

In summary, if you want to achieve shortcuts in business financing services related to leasing equipment you would do well to speak to a trusted, credible and experienced Canadian business financing advisor who knows the business and will accelerate the shortcut to best asset financing you can hope to achieve .



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/leasing_equipment_finance_lease_business_financing.html