What Do The #’s 3 And 10 Have To Do With Lease Financing In Canada – Answer : Everything Commercial LeasingCommercial Leasing

OVERVIEW – Information on equipment finance in Canada. The commercial leasing company offers asset acquisition solutions if properly understood and utilized

Equipment finance needs require knowledge of the 3 and 10. Knowing what a commercial leasing company does, and how it works relative to your acquisition needs puts you in a position of equal power when it comes to asset financing. That new found knowledge becomes your ‘ ride to the top ‘. Commercial LeasingLet’s dig in.

Let’s first cover off the 3. There are essentially 3 types of lease firms you should be working with. Not working with the right one has the strong potential for wasting time and expense.

As we have said there are different ‘ types ‘ of organizations that offer the asset financing you need for your fixed asset acquisition needs. Knowing which source to access for a particular need is a valuable knowledge tool for the business owner/financial manager.

While Canadian chartered banks are not always first to think of when it comes to equipment lease more and more of Canada’s banks have entered the leasing market. They either own, or operate numerous lease firms. To qualify your firm must be credit worthy with an appropriate mix of profits, assets and cash flow. Bank leasing is available in small, mid and large ticket transactions. Larger transactions are often tied to your total banking solution.

Many mfrs also offer financing services. They do this directly, via what’s known as ‘ captive ‘ financing, or they partner with firms that offer lease financing to their clients. Captives use financing to increase sales as much as generate lease profits on finance costs. As a general rule you will always get a better deal on price, terms and structure when offered by the mfr. – in some cases the rates are even subsidized to enhance the financial offering.

The bulk of commercial lease financing in Canada is offered by independent commercial lease company. Whether Canadian or U.S. owned they offer the widest variety of funding sources, with many specializing in deal size, industry niche, geographical location, or credit quality focused. By the way, many firms that might not qualify for bank or captive financing can have leases structured to qualify for financing. While they might mean a down payment, a shorter amortization, etc in the end it’s the approval that counts to the business owner.

Let’s move on to the 10’s. Here we are talking about specifics you need to address in constructing a finance lease that makes sense for your asset acquisition. Those ten issues include: conveying the use of the equipment to the lessor, working with the right lease company, understanding the final monthly payment relative to your cash flow, mid term lease flexibility, insurance, maintenance needs if applicable, upgrade options, end of term obligations, returns if equipment is not going to be owned, and finally any miscellaneous costs associated with the lease.

A simple checklist could be constructed to ensure you’ve covered off all the bases. Not knowing the real story on any of our ‘ 10 ‘ ultimately will cost you time and money.

So there you have it. The 3 and 10 covered completely! An alternate level of comfort? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your commercial leasing company and equipment finance needs.

Author: Stan Prokop 7 Park Avenue Financial :

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


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