OVERVIEW – Information on sources of lease finance in Canada . Identifying the right equipment financing companies saves time , money and provides you with the best rates and terms for asset finance needs
Equipment financing in Canada; as a Canadian business owner or financial manager can you properly identify the best lease finance company solution for your asset acquisition requirements? Making the right choice and decision will make your firm a ‘ success story ‘ when it comes to asset finance needs. Let’s dig in.
There are actually 6 different types of lease financing sources in Canada. Which one is right for you depends on a couple of key factors:
Size of the asset / financing in $
Your overall credit quality
The nature of the asset
Although there are different asset finance choices when it comes to who you will deal with, it’s important to note that your process will relatively always be the same.
That process includes negotiating pricing, terms and lease documentation. In transactions less than $100k quite often a simple one or two page lease document suffices. For larger transactions you might be required to address more complex documentation but the industry prides itself on keeping things simple.
Other issues you have to cover off in a ‘ normal ‘ process include determining how and when your vendor/supplier will be paid – in most situations the lease finance company pays your supplier directly.
Remember that in any lease transaction your payments will begin when you have accepted the asset as being delivered/operable, etc.. Remember also that while most clients we meet focus on starting a lease it’s critical to focus on and understand end of term options. They might include upgrading, returning, disposal, etc.
So, those 6 equipment financing sources?!
They are commercial leasing companies, captive financial firms that are aligned with a particular mfr, your vendor itself (some vendors will provide asset financing of their products), insurance companies, banks, and finally a lease advisor who is properly aligned to ensure you select the right lease entity.
Which solution is best for your asset needs? The answer lies in issues we’ve discussed already, re $ value, your firms ability to demonstrate commercial credit worthiness, and the type of asset you are financing.
Remember that all 6 different solutions have different focuses re geography serviced, deal size appetite, types of assets they prefer to finance, and credit strength preferences. When it comes to credit quality almost any asset can be financed – that flexibility comes from the ability to alter terms, get a down payment, or address additional collateral requirements.
A proven way to choose the right lease company is to ensure you’re working with a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
– ensuring your asset finance needs become a true Success Story.
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 :
7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT LEASE & FINANCING EXPERTISE
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