OVERVIEW – Information on leasing companies in Canada . What does the business owner/manager need to know in order to benefit from a lease company solution
Leasing companies in Canada almost always provide the classic ‘ Hail Mary Pass ‘ when it comes to financing asset needs. Whether its fixed assets, rolling stock, or technology needs the ‘ right ‘ lease company solves the problem, just when you needed it most. Let’s dig in.
How though does the business owner/financial manager sift through, process, and reap the benefits of the equipment financing solution? Numerous real or perceived obstacles come up – they include a requirement to understand some of the basics of the industry, allowing you to reap the benefits they so strongly preach.
While many owners more experienced in lease financing constantly reap those benefits many firms still wrestle with the basics – they include:
What is the difference in rates based on asset size, credit quality, and type of asset financed?
Are there alternatives to the lease solution?
How important are the tax and accounting implications of asset financing?
Is it necessary to perform a ‘ lease vs. buy ‘ analysis?
What types of leases are available and how do they work?
As a lessee you’re in much strong position than you think. The Canadian lease landscape is very competitive, current rates are at an all time low, and different types of finance firms truly want your business. By the way it’s during this negotiation stage that your firm, or your lease advisor. truly wields the most negotiating power.
At future stages in the lease process when it comes down to credit approval and documentation it’s as important to define your rights and obligations under the lease .Knowing the asset quality and useful life of the asset is also important, as that ‘ end of term ‘ value is often critical to knowing who’s making more money on the transaction, you or your lessor!
As we have said, the choice in your financing needs is significant in the Canadian marketplace. Independent commercial firms, banks and captive finance firms that are directly related to manufactures all vie for your business. A lot of shoe leather can be wasted, by the way , when it comes down to searching for firms that ultimately can’t meet your needs when it comes to deal size, assets financed, or your firms credit profile . The good point of ‘ credit profiles is that virtually all credit quality can be financed. If your company has credit ‘ challenges ‘ leases can be ‘ structured’ vis a vis term, down payment, outside collateral, etc.
It can’t be expected that all firms requiring asset financing needs know all there is to know about the mechanics of the equipment lease. That’s when it might be beneficial to use the services of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in issues such as:
Pricing/ financing cost
Your firms deal requirements
Documentation/ Credit Approval
In effect you’re utilizing the experience and knowledge of the industry for your firm’s maximum benefit. All of a sudden that ‘ Hail Mary pass’ looks better than ever.
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 EQUIPMENT FINANCING EXPERTISE
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