OVERVIEW – Information on equipment finance in Canada . Maximize your use of leasing assets with this information , including misinformation clarified
Equipment financing in Canada , similar to other industries, clearly has its own ‘ lingo ‘. Knowing some of those terms maximizes your ability to increases benefits of equipt leasing through selection and negotiation of leases that make sense for your firm. It’s your version of a finance gravy train! Let’s dig in.
Most people agree the economy is firing on all, (if not most!) cylinders. Lower rates and the needs to acquire or upgrade assets almost always make. That investment can be a huge cash flow drain on your financials and asset financing address that cash outflow. Top experts tell us that 7 out of 10 businesses will have some type of lease financing need in the coming year.
The ability of owners to expand their businesses is key to remaining competitive – Certain asset categories are always in demand relative to financing needs – they include office technologies, plant machinery, telecom equipment and transportation ‘ rolling stock ‘. The good news is that really almost any asset your business needs is financeable.
One of the ways that many firms in Canada utilize leasing is simply as an alternative source of capital – It’s all about not putting all your ‘ credit eggs’ in one basket. While many Canadian banks do offer asset leasing it should be clear to owners/managers that any borrowing facility within a bank will be part of your total credit line with the bank. In fact the majority of borrowers prefer to use our chartered banks for their operating facilities and other misc services.
Where can the busines owner ‘ trip up ‘ on when it comes to improperly assessing or understanding your finance options. By the way, we’re the first to acknowledge that loans, bridge loans, sale leasebacks, and other forms of venture debt can also be used to acquire assets.
Focusing in on the type of lease you need will save your firm a lot of time and potential financial loss. The bottom line is that you have two choices – a lease to own, or a lease to use option. In industry terms they are known as ‘capital ‘and ‘ operating’ leases respectively. Understanding issues such as advance payments, how lease companies make money (cash flow timing, interest rate, residual value of asset) and accounting issues around acquiring assets are all important.
If you want to make sure you’re both exploring and maximizing asset finance needs properly 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 equipment leasing needs.
Writer 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 :
7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS EQUIPMENT FINANCE EXPERTISE
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