Helpful Lease Equipment Financing Solutions

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LEASING EQUIPMENT & TECHNOLOGY IN CANADA

Lease equipment financing is one of several financing strategies that Canadian business owners and financial managers employ. New? No...not really, but misunderstood? Perhaps. This is not a unique financing solution: Do you as a business owner or financial mgr understand the benefits of lease financing/equipment leasing when considering the purchase price of an asset? Wonder how does leasing work? Let's dig in.

BENEFITS OF EQUIPMENT FINANCING AND LEASING

Those benefits: They revolve around your firm using the asset, new or used, and becoming productive, growing your sales and profits through the use, not the ownership, of the purchase.

Naturally, if you utilize lease financing in Canada primarily for cash flow benefit, you, of course, have the option of structuring your lease so that you own the asset also. The old saying of 'profiting through use, rather than ownership' has never been more accurate.

WHAT IS YOUR ASSET LEASING STRATEGY?

When we sit down with business owners and financial personnel to discuss their lease financing transaction or their overall financing strategy for their firm, we continually come back to the point of getting the right asset at the right price and following: adequately financing that asset. An existing lease can be modified or added to based on ongoing equipment needs.

WHAT ASSETS CAN BE FINANCED?

No secret that any asset can be financing - technology, medical equipment, rolling stock, office equipment, factory assets, etc. - The list is endless,

Every business today is challenged to be more competitive in the new global market, whether your firm is state-of-the-art leading edge technology-driven or if you are a Canadian nail maker competing with offshore competitors in China. So utilizing the best, latest, and proper equipment for your firm is what Canadian lease financing is all about.

TAX AND ACCOUNTING BENEFITS!

Talk to your accountant or tax advisor or lease benefits and what they can do for your firm. Expensive equipment that you need might not have been able to afford is now within reach!

There is no one lease financing solution for every business in Canada. Lease structures differ, different users focus on benefits they wish to achieve, and even governments utilize the strategy for various reasons for asset acquisition and business expense budgets. Many people are surprised to know that municipal, provincial and federal governments all use lease financing strategies.

In the past, we have spoken of different firms, as noted above, focusing on various lease benefits. We also need to point out that when your Canadian firm enters into a single lease, or perhaps an overall lease financing strategy that the transaction has implications on your taxes, your accounting treatment of the lease and how the lease needs to be structured from the viewpoint of rate, term, lease payments tailored to your cash flows, fixed-term payments etc.

Flexible terms vary depending on overall credit and asset quality. Credit conditions apply, but firms with less than stellar credit can still get financed most of the time.

Naturally, everything we are talking about pre-supposes you will be approved for your lease transaction/business loan from a 'credit approval' / business credit report perspective.

CREDIT APPROVAL

Different aspects of your company’s overall credit quality will affect the rate, term of your lease, and the amount of approval from the leasing company. A down payment might be requested in some situations. The current reality is that there are so many flexible lease structures in equipment leases that the vast majority of firms can attain some level of lease finance success. A business plan is not necessarily required but might help for significant asset acquisitions.

Customized solutions for new or used equipment and the tax-deductible benefit around payments are why 80% of North American businesses utilized lease funding. Outdated machinery can be replaced, and a lease term suited to the asset's useful economic life can always be addressed.

CONCLUSION - EQUIPMENT LEASE FINANCING

Bottom line? While many businesses, including large corporations and governments, utilize equipment finance, any small business can use financing and leasing solutions. Leasing companies provide solid financing solutions at a competitive interest rate. Some companies might opt for an equipment loan, with equipment loans being essentially term loans that allow your business to keep your line of credit intact for general working capital needs.

It is simply that Canadian equipment financing of any type is a valuable tool when purchasing equipment in any business owner's tool kit in Canada. To better understand the benefits you wish to achieve and work with 7 Park Avenue Financial, a trusted lease advisor, to ensure you maximize the lease benefits of leasing companies for your firm.

Click here for the business finance track record of 7 Park Avenue Financial.

' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil

Lease Equipment Financing | 7 Park Avenue Financial

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