Equipment Financing Business Leasing Solutions For Your Equipment & Technology Needs

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Do you understand the power of business leasing? Let's dig in! Equipment financing for your company’s asset and capital needs is probably the biggest 'ace in the hole' that business owners and financial managers have in their 'grow the company' toolkit.

UNDERSTANDING EQUIPMENT FINANCING AND LEASING

Any tangible assets used to operate a business may be considered business equipment. Many companies invest in the purchase of expensive equipment. Equipment lease terms vary amongst each lessor.

ASSET & TECHNOLOGY FINANCING FOR GROWING COMPANIES

Your business is growing, and the good news is that leasing equipment in Canada is growing even more. So it makes sense that you have a basic understanding of equipment financing and who to turn to when you want to utilize this great asset acquisition technique?

WHO USES LEASE FINANCE SOLUTIONS?

Top experts tell us that almost 80% of all companies in Canada utilize lease financing when acquiring assets via an equipment lease from computers to plant equipment to specialized equipment. The reality is that almost any business asset, even software to run your company, can be financed - and that type of funding conserves your line of credit and cash outflows!

HAVE YOU CONSIDERED AN OPERATING LEASE FOR CERTAIN ASSETS

So what's the reason and advantage in choosing a lease solution? When you utilize this finance strategy, you are sharing the risks of asset ownership with the lessor and depending on which type of lease you actually choose - there are two types - you can actually use the equipment for the agreed-upon term and return the asset.

The other key advantage, of course, is simply lowering your cash outlays - allowing you to use your borrowing facilities for other purposes. That latter type of financing, known as an operating lease, also lowers your overall financing expense.

The bottom line is it's important to understand what type of lease makes sense for your firm. In an operating lease, lease payments are lower, and you have several different rights to exercise at the end of the lease - i.e. keep, return, renew at a lower monthly payment, etc.

INTEREST RATES AND CREDIT APPROVAL

When we meet with clients exploring the benefits of a leasing option, a large part of the discussion is on rate and credit - That's understandable because that is what drives leasing approvals! You need to be able to understand, in advance, the financial requirements of a lease approval and ensure you have positioned your company in the best manner possible about what a lessor might need to know about your needs and financial situation.

Businesses should talk to their accountant about the tax benefits and other accounting benefits that come with financing assets via a lease when it comes to the overall cost, etc.

UNDERSTANDING WHO DELIVERS YOUR BEST LEASE FUNDING SOLUTION

In Canada, you can obtain lease financing via a couple of chartered banks, independent finance firms, and captive lessors tied to manufacturers. Knowing which type of firm to access can save you money... and time.

We recommend to the majority of clients to pursue an independent finance company lease partner - credit conditions are more lenient, they are specialized and highly motivated to do the one thing they do best, approve and write leases!

COVER OFF ALL THE ISSUES WITH EXPERT HELP - SAVING TIME AND MONEY

Your most valuable partner in this industry is a trusted, credible, and experienced lease financing business advisor who can guide you very efficiently through the maze of firms in the industry. That relationship can be a valuable one.

Business owners should never forget that when they adopt a long-term leasing philosophy, they are making their firm more competitive because assets acquired to run the business can be easily upgraded and replaced, allowing that equipment to generate optimum revenues and cash flow.

In some cases, you may wish to lease used equipment, which is easily managed as long as it is a commercial and not a private transaction, and in some cases, short-term leases or rentals can suit your needs when it comes to budget or payment or term required.

THE LEASE VERSUS BUY QUESTION

Whether business owners/managers want to admit it or not, the days of 'pride of ownership in assets are probably long gone. These days it's about outsourcing, lower cost, newest model, etc. The best example of this is computing and software, all of which can and should be leased given the constant changes and cost. So think carefully about whether you need a business loan or lease for your equipment needs when considering bank financing or leasing companies as a finance partner.

CONCLUSION

Speak to 7 Park Avenue Financial; a trusted, credible and experienced business leasing advisor who can assist you in maximizing your knowledge of the Canadian small business asset finance industry, allowing you to use this valuable tool to grow sales and profits with financing solutions that make sense for your particular business needs while making the process easy.

FAQ: FREQUENTLY ASKED QUESTIONS

Buying is usually less expensive, but if you don't have a lot of money to invest or wish to conserve cash, leasing generally requires less funds and may allow access to more up-to-date technology over time. Ultimately though, we're talking about what works best for your business goals.

It's important to be informed about all your financial options so you can find one that best fits your needs; Leasing is more flexible than outright borrowing capital because it offers different types of lease agreements for varying amounts, terms, lengths, etc.

Borrowing has strict guidelines on the amount borrowed and when and how much must be paid back with interest charges applied. At the same time, repaying loaned funds within set deadlines could put pressure on entrepreneurs who operate their business cycles off monthly expenses rather than annual income, which may not cover these payments in full at times.

An operating lease typically means that a company can spend money on certain types of assets without owning them or spending much time and effort to maintain the asset, but for a shorter amount of time.

A company may want to lease a certain type of asset for a specified duration without ownership. When the lease ends, they can sell it or have another option available. This is especially beneficial when looking at equipment because leasing has many advantages over buying outright and taking out loans.

' 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

Business Leasing Equipment Financing | 7 Park Avenue Financial

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