OVERVIEW – Information on financing assets in Canada. The equipment lease company solutions your firm has access to provide a multitude of flexibilities in your consideration for fixed asset investments in equipment, technology, rolling stock, software, etc .
Financing assets for any business is a key challenge for owners/mgrs. How then to fix that problem? The answer may well lie in the solutions provided by the right business equipment finance company. Let’s dig in.
The popularity of equipment leasing is proven if only for the fact that it’s commonly used in almost every country in the world these days. Here it’s always about the value of the asset and its ability to generate profits and cash as well as of course growing sales.
The right lease partner or advisor will have the ability to understand how leased assets help your business and industry.
Lease financing is all about ‘ use ‘ of the asset, as well as easy acquisition. In many cases you are able to ensure the asset title and ownership passes fully to you the lessee at the end of the term. Asset ownership does not pass when you choose to enter into an ‘ operating lease ‘ or rental.
The true life of the asset / assets you are financing is an important concept to understand. Your goal, should you choose to accept it? Simply speaking – match the cash outflows of your lease payment to the overall useful life of the asset.
We mentioned rentals/operating leases already – they are used for temporary uses of assets – a good example is computer and software leasing where assets need to be refreshed continually due to technology changes.
Naturally owners / mgrs have the option to utilize bank term loans as another way of acquiring assets. The key benefit of leasing is touted as little or no down payment – i.e. 100% financing. We encourage all our clients to use any form of ‘ lease vs. buy ‘ analysis to ensure they are entering into the right financial arrangement. Here you are well reminded to ensure you understand the balance sheet and tax implications of buying, owning, and depreciating any asset on your balance sheet.
While in many cases you might pay more for the overall lease transaction ( not always, but sometimes ) don’t ignore the ability to have the flexibility to structure cash flows, re-do the lease, or ensuring you have some options that might make sense at end of lease term.
So who in fact are the ‘ key players’ in Canadian equipment finance? Fortunately, or unfortunately, depending on how you look at it there are numerous firms that offer these solutions. They include some banks, manufacturers themselves (captive finance firms) as well as commercial independent finance companies.
Knowing which leasing company can address your working capital needs as they relate to acquiring fixed assets is key. Not every firm can qualify for all the bank financing they need – so they aren’t able to acquire what the pros call ‘ conventional finance ‘.
If your firm is considered very ‘ credit worthy ‘why would you consider a non bank commercial finance company? The answer? It’s a simply and faster method of closing a transaction purchase , while at the same time not restricting other credit line needs your firm might have .
If you truly want to ‘ fix ‘ the problem of putting new assets into your business on a one time or continuous basis seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can make the job of ‘ financing assets’ easier.
Stan Prokop – founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years – Completed in excess of 100 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 & Contact Details :
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
‘ Canadian Business Financing with the intelligent use of experience ‘
ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
Stan Prokop7 Park Avenue Financial
Canadian Business Financing