YOUR COMPANY IS LOOKING FOR BUSINESS LEASE FINANCE SOLUTIONS!
EQUIPMENT LEASING FOR COMMERCIAL EQUIPMENT LEASING NEEDS FOR BUSINESS
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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Equipment finance in Canada is all about ' simple ' and ' easy. ‘ Why then do some of the issues around financing solutions via commercial leasing companies mystify clients when it comes to financing requirements for new assets or technology? We think we know some of the answers. Let's dig in.
KEEPING UP WITH KEY CHANGES IN LEASING COMPANY AND EQUIPMENT LEASING SOLUTIONS IN CANADA
Although it’s been around almost forever, some of the issues are lease financing constantly evolve. Whether it's the recent major change in operating lease finance (goodbye forever, dear off-balance-sheet financing friend !) or taxation issues, our clients can be forgiven for trying to understand which benefits mean the most to them for asset acquisition business needs.
THE MULTITUDE OF SOLUTIONS IN BUSINESS EQUIPMENT FINANCING NEEDS
Part of the problem also revolves around the marketing and information provided in the highly competitive equipment lease market regarding financing services. Today in Canada, solutions abound from captive finance firms attached to mfrs and dealers, independent commercial lease firms that are both Cdn and U.S. owned, as well as Canadian chartered bank solutions offered by their leasing divisions or subsidiaries.
3 EXAMPLES OF A LEASE PAYMENT CHANGING VIA EQUIPMENT LEASING COMPANIES IN CANADA
Case in point? Which of these 3 payments would you prefer as a monthly installment on your lease? Let's use a $100,000.00 transaction as an example.
SOLUTION 1 - $ 3133 / MO
SOLUTION 2 - $2640.00 /MO
SOLUTION 3 - $2516 /M0
IT'S NOT ALWAYS ABOUT THE INTEREST RATE WHEN IT COMES TO LEASE FINANCING IN CANADA
While most of our clients will say - ‘We will choose the lowest one!" the reality is they are essentially all the same transaction - just structured differently to suit your company's specific needs around cash flow and ultimate use of the equipment.
Let's explain. Solution 1 is a three-year lease-to-own scenario. Payments are fixed, and you're obligated to make 36 equal monthly installments at a specified interest rate. We have used 8% as our example in all calcs.
Solution # 2 is what is known as a bargain purchase options from leasing equipment companies, whereby, mainly to reduce payments during the initial term, the client has the ability at the end of 36 months to refinance the remaining balance, in this case, 20%, or to pay it out at its option.
Both transactions 1 and 2 have the owner owning the equipment at the end of the lease.
THE OPERATING LEASE SOLUTION VIA CANADIAN LEASING COMPANIES
Solution # 3 is our operating lease - coming in at the lowest payment. At the end of the 36 months, the obligation is to return, purchase, or upgrade or extend the lease according to the asset and your firm's specific needs.
LEASING PROVIDES MANY PAYMENT OPTIONS TAILORED TO YOUR CASH FLOW NEEDS
By the way, seasonal or skip payments can also be added into any of the above scenarios often used to address cash outflow challenges in many companies and industries.
CONSERVING CASH FLOW / PREDICTING CASH FLOW
The predictable cash flow in equipment finance is a solid benefit for cash flow challenges - and more often than not, newer or more expensive equipment can be more easily facilitated via the ' low monthly payment ' lease option that matches benefits to useful equipment life. Very important for assets that help generate revenue!
THE LEASE VERSUS BUY DECISION
We have shown that you have different options for small businesses according to needs and the inherent flexibility offered by commercial leasing companies. They help the business owner determine the best decision in that ' lease vs. buy decision that is required. In some cases, a traditional business loan/term loan might be an alternative when your company is comfortable using existing credit facilities to acquire long term assets - in most cases; this is not a good matching of funds with long term business capital needs.
The interest rate will always be a concern for lessees/borrowers. Still, it's important to consider access to capital as much as the cost of capital when it comes to acquiring assets you need to grow the sale of your products or services. Both new equipment and used equipment can be financed - in the case of used equipment; it must be a commercial sale, not a private sale.
CONCLUSION
Bottom line on lease financing companies? While an interest rate and financing cost have to be competitive, it's important to look at the payment and lease structure flexibility and ease the lease credit application approval process. If you're interested in ensuring you have all the options on the table from commercial leasing companies in Canada, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can ensure your equipment finance needs are met with customer service and industry knowledge you expect and need from an equipment leasing service & lease company expert.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2021/Rights Reserved
