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

Avoid Missing Out On Finance For Lease Benefits When You Choose The Right Leasing Company

Is it possible to get all the right finance for lease benefits in place with one leasing company ? That might not necessarily be the case, but the reality is that if you know the right questions to ask and which partner firm to work with you should be in a great position to maximize on benefits that makes sense - for your firm!

Your business, when it comes to leasing equipment, is not a lot different than many of your competitors. It's actually quite simple - you want good service, a competitive rate... (Notice we say ' competitive ‘... more on that later ) and prompt approval. We are dismayed when clients tell us of previous experience in getting a lease approved - in our perspective this should takes days, not weeks and months as some clients have experienced in the past .

Let’s get back to that whole issue of pricing - we mentioned a ' competitive ' rate. Our problem is that our clients are always focusing on the absolute best rate and tend to miss out on some of the obviously other advantages that they should instead be focusing on. These other advantages might include lease documentation simplicity, end of lease renewal or buyout options. Ability to upgrade during the term of the lease, etc.

So, yes we agree that you don’t want to pay the highest lease rate in town, but the reality is that finance firms have to stay competitive in business - and guess what... want to know another secret? It’s simply what we have shared with clients for years, in that they get to pick their own rate when looking for a lease company and finance for lease benefits that makes sense.

What?! Asks the client. What could we possibly mean by that? Well it’s simple actually. Your pricing and approval are driven by credit quality in lease financing in Canada. So if you can demonstrate your credit quality, and you choose the right lease partner relative to deal size, type of asset you are financing, etc then, guess what, we can pretty much guarantee that you can have an important say in that final rate . Again, if it’s just 'rate ' that’s important, and it shouldn’t be!

We talked earlier about your company being in the same boat as your competitors when it comes to lease financing - we do acknowledge though that every firm is different in some manner or respect, so if you do have specialized needs on types of assets to finance, customized solutions, cash flow flexibility needs, etc .. Well then of course you need some extra help.

Speak to a trusted, credible and experienced Canadian business financing advisor who can make sure you are comfortably with the right partner leasing company and that the finance for lease benefits you are looking for is achievable.

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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/leasing_company_finance_for_lease_benefits.html

Is a Leasing Company Your Best Choice For Business Equipment Financing – Choose Business Leasing That Makes Sense !

Common sense financing, fast approvals and flexibility that makes perfect sense for your firm - that’s why when you want to lease business equipment a leasing company is your best choice for business leasing financing.

If we were to ask you to name ten quick benefits of any type of business financing in Canada we quite frankly cant imaging you would name any other type of finance other then leasing . Just think about it.

Ten, yes ten solid reasons to consider a leasing company for your right choice of asset finance. Lets recap them - technological obsolescence protection, accounting benefits, cash flow management, potential tax savings, the right to own or not own the asset at the end of the lease, convenience, ability to match the asset financing to its useful economic life, quick credit approval ( boy do we like that one !) and finally often a lower cost and cash outflow .

Whew! That was a mouthful of reasons. Let’s circle back on one of those benefits, the issue of a prompt credit approval.

Canadian business financing got really challenging in the last couple years. Traditional financial institutions that funded equpment such as banks and insurance companies quite frankly simply stopped funding your business leasing needs. The leasing company you probably worked with also borrows, just in case you didn’t realize it. Somehow we all survived and as we head into 2011 the equipment financing industry is on a pretty good roll.

We keep coming back to flexibility when clients ask us about what the best choice options are in business leasing. Always remember that when you choose to finance an asset you can enter into a lease to own scenario, aka a 'capital lease ' , or, continuing on our theme of flexibility, you can opt for an operating lease - which simply states your desire to use an asset, not own it . Equpment that depreciates quickly, needs to be replaced due to technology, etc, is the perfect choice for an operating lease option.

Asset financing from your business comes out of very different needs - it might be a photocopier for the office, (or computers), equipment for your shop floor, and, even a commercial jet for your corporate meetings! (Well, we can dream , cant we?!). Our point is simply that any type of asset can be leased, and often bundled in with other ancillary services such as installation, maintenance, warranty, etc. Again, there’s our flexibility again.

Do you have a personal business relationship with the hundreds of lease companies in Canada? If you do we're jealous, and you obviously have a lot of time on your hands. If you don’t, speak to a trusted, credible and experienced Canadian business financing advisor who can ensure those many benefits of business leasing can be matched with the leasing company that suits your 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 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


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