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

Don’t Strike Out With Canadian Leasing Finance Companies – Hit Home Runs Via A Financing Equipment Company

Sports analogies don't always work, but this time we think it’s quite appropriate. Striking out, i.e. losing when you are considering financing equpment strategies in Canadian lease finance should not be part of your preferred ' home run ' strategy when you work with a lease company.

The exhilarating feeling of the ' home run ' in equipment finance comes from completing a transaction for a new or used asset, knowing that you have achieved solid success , i.e. your ' home run ' based on a final great approval, rate, lease term, and flexible structure .

Strike outs rather, come from that other feeling, the sinking one, realizing that you have been pushed into a transaction that doesn’t make sense. Many lease finance firms in Canada are only happy to put you into a final structure that fits their approval and security criteria, not necessarily yours.

So, keeping our sports analogy in place, how do you create a winning streak for financing equipment success in Canada? We believe its simpler than you think, if, and its a big if sometimes, you are ‘armed and dangerous’ relative to knowing your lease options , and what leasing finance benefits accrue most favorably to your company .

First it’s all a questions of ' fit '. In Canada there are three general categories of a financing equpment company. They are small, medium and large... ticket that is. (Almost feels like buying a suit, doesn’t it?!) So when you have a new or used asset to finance remember that you should be working with a firm that specializes in your size and asset type. Why spin wheels approaching , talking to , and asking for a lease quote for a new computer system for your office when the lessor is only looking at transactions several million dollars and over - bottom line its a waste of your time, and theirs .

Step 2 simply understands lease products. In Canada, we keep it relatively simple... (The U.S. has tax leases, trac leases, leverages leases, synthetic leases, etc!) But us Canadians can generally get by with capital or operating leases. A simple way to remember both is simply lease to own, ( capital ) or lease to use, (operating ). Knowing the type of lease you want can save you a lot of time, plus potentially thousands in interest rate and total payments made savings.

The 2 other areas of Canadian leasing finance that you should be knowledgeable about are lease options, and approval criteria. When you investigate leasing finance is aware of critical issues such as down payments, security deposits, the total all in rate, hidden registration fees, etc. Bottom line; spend some time on certain areas of the fine print when that makes sense.

We done necessarily agree, but most clients think that rate and monthly payment is the ultimate home run criteria in Canadian leasing company negotiations . We haven’t told them that in Canada, unbeknownst to most customers, you actually get to pick your own rate.

How? Simply because rates are provided based on credit criteria, and knowing your firms credit and how to present it generally allows you to gain the best rate possible without much negotiation. The good news is that Canadian firms with great credit can get lease financing, and firms with less than great credit, i.e. financial challenges can also achieve lease approval through a more structured approach - i.e. a shorter term, or perhaps a down payment.

Well that’s it. Hopefully you feel confident now as you step up to the bat that you can achieve a financing equpment home run. Its simple , just remember our basic tips around lease types, how rates are determined, and types of leases and how the industry is segmented in Canada .

P.S. See you at the World Series!



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/financing_equipment_leasing_finance_company.html

Turning Canadian Business Equipment financing Challenges Into Opportunities - Leasing Finance Works!

Over the last year or so business financing availability has declined for many firms. Let's examine how one strategy, business equipment financing - can be turned into an opportunity for your firm to succeed. Leasing finance works and we'll show you how with valuable inside tips.

How many options does your firm have when it acquires new equipment? To our way of thinking, only three - you purchase it, you lease it, or you arrange for term loan financing. The math around leasing finance often shows you it might be marginally more expensive than outright purchase. That’s because more financially astute firms have the ability, and do, to run extensive lease versus buy scenarios.

So why would you typically want to choose a financing option such as business equipment financing via a lease if it turns our it’s a bit more expensive.

We think the compelling reasons to utilize lease financing revolve around some very important ' real world ' issues such as quick access to credit, conserving operating working capital, accounting issues such as keeping the asset potentially off your balance sheet , and , getting down to brass tacks .. You as a user don’t want to end up owning a ' boat anchor ' of an asset that is still on your books but has little use or very little economic and financial value.

If your time is at a premium, and which business owners time is not, then you will surely be pleasantly surprised that the life cycle of acquiring your asset and financing it is much short via an equipment financing solution.

We have already shown you that financing options are limited, so why not choose the easiest and quickest route to approval - which more often than not is business equipment financing. The majority of approvals can be arranged within a week or so if you have a basic package that includes the asset quote or descriptions, your financials, and some basic business overview material on your firm and industry.

Many times the business owners challenge is what to do with equipment at the end of the lease - a lot of things can change in 3 or 5 years, which are the most typical lease terms. (By the way, it’s not unusual for some assets to be financed via leasing finance over 7 - 10 years; but you'll need to demonstrate company viability and asset value at end of term).

But back to that end of lease scenario - think of all the challenges - which might include: do you want to own the equipment, will you choose to return it, and will the asset be required for some indefinite time at the end of the lease...? Etc. All of those are unknowns, or challenges to your business financing. Yet leasing finance solves all of those - a carefully constructed operating lease can give allow you to face all three of the above challenges head on, and be in control of your asset destiny.

In summary - all business financing tends to be a challenge. In some cases of asset acquisition the challenge is layered with elements of risk and a lot of the unknown. Speak to a trusted, credible an experienced business financing advisor on how you can turn asset acquisition challenges into controlled opportunities for growth, asset management, and profit.

-


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_finance_business_equipment_financing.html