YOUR COMPANY IS LOOKING FOR A CAPITAL LEASING COMPANY!
Equipment Leasing Companies In Canada
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Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
Is your company getting the most from an asset and capital leasing company in Canada? Let's examine how your firm can maximize some really creative benefits from lease finance companies in the Canadian marketplace. Business loans/leases around capital acquisition is a key part of growing your company.
UNDERSTANDING SOLUTIONS FROM THE LEASE FINANCE COMPANY
Lease financing and equipment financing leasing solutions don't have to be a ' complex ' form of business financing if you’re aware of some key concepts, some of which are perhaps a bit more sophisticated than others... but bottom line you should never lose out on the advantages simply because you weren't aware.
There are numerous nuances in lease finance when dealing with an equipment leasing company - they revolve around the areas of legal, financial, tax and accounting, as well of course as to how interest rates are presented. Exploiting some of these areas to your firm's advantages brings you maximum creativity when financing equipment.
It's safe to say that we are maintaining that you have to be involved and consider every aspect of the lease transaction - as benefits and creativity come at all stages, i.e. evaluation structuring, credit approval, documentation, and end of the term.
SMALL TICKET TRANSACTIONS IN CANADIAN EQUIPMENT FINANCING - DONE!
Just simply by working with the right asset capital equipment finance leasing company can save you time and money. Did you know many transactions today that is a smaller dollar limit can be approved within 24 hours, and often don't require even full financial statement disclosure?
If you know the general makeup of lease finance companies in Canada you're in a position to maximize your overall cost. In Canada, the marketplace is broken down into small, mid and large ticket lessor. When you understand the ' credit box’... i.e. the financial criteria required for approval, you can save thousands of dollars on lease pricing.
We're often asked who has the lowest rates in Canada when it comes to equipment finance companies. In general, we can say that Canadian chartered bank lease subsidiaries and divisions offer the best pricing, typically 200 basis points or less over bank cost of funds.
DON'T FORGET THE CAPTIVE LEASE COMPANY SOLUTION
Another great alternative for Canadian lessees is to work with a captive finance firm. Although they are also highly competitive in price also there’s an extra creative advantage to utilizing a captive firm. Simply speaking, they are incented to make the sale and provide credit approval, if only because they are supporting the parent company's sales activities.
Did you also know that many captive firms for hardware and equipment lease finance will also consider financing a competitive product - there are various reasons they do that, but suffice to say you're the winner on that one?
Lease finance companies in Canada also provide you with a very creative hedge against obsolescence. Also, numerous ways of achieving the end of term loss minimizations are available to the Canadian business owner.
A WORD ABOUT OPERATING LEASES
We think many firms probably don't utilize the creativity embedded into operating leases in Canada. Although international accounting changes minimize some of the benefits of this off-balance sheet strategy there are great reasons still to consider a FMV lease ( fair market value ) particularly when you are financing technology or large ticket capital equipment via solutions provided by lease companies.
If your firm is somewhat hamstrung on financial performance, rations, covenants, etc lease finance companies are the ultimate solution for capital and cash flow preservation.
Lease structures are virtually unlimited in Canada, and identifying what’s important to your firm will allow you to structure term, payments, end of lease obligations, etc... and on it goes.
CONCLUSION - EQUIPMENT LEASING IN CANADA
Speak to a trusted, credible and experienced Canadian business financing advisor. Get creative when it comes to using lease finance companies for equipment leasing Canada. Understanding the basics around the lease company solutions saves you time and dollars.
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Stan Prokop 7 Park Avenue Financial/Copyright/2020
