YOUR COMPANY IS LOOKING FOR AN EQUIPMENT LEASE FINANCING COMPANY!
EQUIPMENT LEASING STRATEGIES AND INFORMATION
You've arrived at the right address! Welcome to 7 Park Avenue Financial
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
Guilty as charged? You should be. We’re recommending it! We're talking about exploiting commercial equipment lease companies in Canada for your financing needs.
We're told that exploitation is ' utilization, especially for profit'. That’s what we think you should be doing when it comes to considering lease financing in the Canadian marketplace. Let's explain why and how it works for your small business. By the way, medium-size and large corporations all use leasing!
WHAT IS COMMERCIAL EQUIPMENT FINANCING
In today's economy, a very competitive and global one, staying ahead is job 1 for many companies. That means acquiring assets and staying up to date with the latest equipment and technology for business needs. Business owners and financial managers have the option of choose capital lease, ie lease to own, or operating leases, i.e. lease to use. The type of lease you select depends on several factors such as the amount of the transaction, the type of asset, etc
At the same time, whether is Pandemic time or not ! all companies want to conserve cash and capital! That's why commercial lease finance companies are used by over 80% of North American businesses.
Knowing your cash outflows and managing technology is a key aspect of equipment leases and lease financing in Canada.
Naturally when we talk about 'exploiting' we think it’s fair to say it has to be to mutual advantage, i.e. the lessor and you the lessee should be in a win-win scenario. It’s all about maximizing the benefits.
LEASING COMPANIES CAN SOLVE YOUR ASSET ACQUISITION PROBLEMS
To put it simply lease companies solve financial challenges you may be facing in acquiring assets. We constantly preach that to get into the 'exploitation' mode that we're talking about here you have to know the lay of the land.
UNDERSTANDING WHO THE EQUIPMENT FINANCE LENDERS ARE
Therefore it’s important to understand who the players are in the industry and how they differentiate themselves from each other. That could be a full-time job in some cases, and apparently you've got one already!... so it makes sense you want to attach yourself to a lease financing expert who can clearly differentiate the players with respect to their financial offering, their deal size, credit criteria, and types of equipment lease offered.
HOW TO TAKE ADVANTAGE OF THE BENEFITS OF EQUIPMENT LEASE FINANCING
So in what ways can you exploit lease financing to your advantage. There are several, and if we had to summarize them they would come under the categories of economics, working capital preservation, balance sheet and income statement benefits, as well as just ease of acquisition
THE LEASE VS BUY DECISION
When it comes to economics it's all about the cost of ownership, and the lease versus buy decision. You have to do some basic analysis around why you want to lease finance and that often boils down to the actual use of the equipment at the end of the lease, not at the beginning as most think!
The decision to acquire assets will come after a number of factors are considered - those factors might include:
Cost of the asset
Your cash flow situation
Accounting/tax/depreciation issues
Asset life
Amount of Debt on Your balance sheet
We constantly see business owners and financial managers in Canada doing a not too bad job of finalizing a lease transaction at inception, but they often fail to consider mid-term and end of term economic implications.
One of the great economics with commercial equipment lease companies in Canadian business is the sale-leaseback - it’s a strategy that replenishes your working capital and maximizes your owned, unencumbered assets.
Issues such as taxes and depreciation often fail to excite the business owner as lessee. And count us in that group also! But we do caution clients to discuss accounting, tax and deprecation benefits around business lease financing and how they might positively impact your financial statements.
If you’re an astute lessee you can save hundreds, and often thousands of dollars based on some simple understanding of lease rates, why they are important and why they might not be.
Clients don't always believe us but a low monthly payment or interest rate doesn't mean anything when it comes to other aspects of your transaction such as down payment, skip payments, end of term obligations, calculation of a buyout, etc.
There's an old joke among lessors who maintain they will give you any interest rate you want as long as you sign 'their' lease contract!
CONCLUSION
Most businesses quickly realize lease financing is easy to apply for - simple applications, quick approval adjudication, and easy to understand lease documents. Generally, the lease company will pay your supplier directly as soon as you have received and accepted the equipment.
How can your company take advantage of commercial business equipment leasing? Although not all advantages will apply to every company and industry there are a large number of key financial advantages that potentially come with your decision to lease, not buy.
6 KEY BENEFITS OF LEASE FINANCING VIA A LEASING COMPANY
They include :
The potential to avoid any down payment and select the right lease term - Your business credit profile will ensure the most reasonable interest rate possible
Upgrades are available to most technologies are embedded in your lease documentation, allowing you to return, upgrade, and extend the lease - Note: Used equipment can be financed also, as long as it is a commercial transaction and not a private sale
The issue of obsolescence is significantly reduced as you are matching lease terms to the useful economic life of the asset
Any firm that leases assets can usually buy equipment that is more expensive because their cash outlay is only about the monthly payment, not the capital cost - Budgets 101!
Tal to your accountant, but a number of tax and depreciation and financial statement presentations issues come with lease financing
Numerous add on services such as maintenance, service contracts, parts, etc can easily be added on to a lease addendum
Exploit commercial equipment lease companies to your advantage. Maximize benefits; minimize the downside by some careful analysis. Not feeling qualified? No problem. Speak to a trusted, credible and experienced Canadian business financing advisor. Let’s get exploiting!
