Equipment Finance Leasing Equipment Asset Lease 7 Park Avenue Financial

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The Best Tools and Resources for Equipment Finance and Asset Lease Success - A Canadian Leasing Equipment How-To!
Equipment Finance and Loan Success in Canada

 

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It's your call, but if your firm has ever experienced a challenge in purchasing an equipment asset it’s about time you understood the benefits and flexibility of equipment financing via a leasing strategy.

The reality is that for most Canadian firms not all benefits attached to leasing equipment will necessarily make sense for you, but your ability to capitalize and maximize those benefits that do will save you potentially thousands of dollars.

Today’s business world is all about competition and your ability to acquire an asset lease allows you to win the battle against deprecation and obsolescence. Quite frankly though many firms actually acquire used equipment in a variety of asset categories and this part of equipment finance in Canada is a booming one. The recent 2008-2009 recession left a glut of assets in many industries such as printing, construction, etc.

When it comes to technology financing though new is probably better, and that’s where lease financing shines. When you consider the relatively short time span it takes to arrange such a lease it often becomes a true advantage over a loan or bank term loan scenario.

Clients often ask what the 'entry points' are to leasing in Canada.  Frankly, assets from three thousand to the millions are leased every day in Canada - the bottom line is that equipment finance doesn’t discriminate against size.  Stats available in the U.S. and Canada suggest that over 80% of firms lease equipment at one time or another.

Is there one constant driver in the search for great asset lease solutions? We think that more often or not it’s limited capital.  Clients seem to feel that the most efficient use of their working capital and cash flow is the 'driver' for their search for leasing equipment options. And as we said, that goes from hi-tech to low tech, whether you are financing the newest computer and software technology, or refurbishing plant and equipment or transportation 'rolling stock' type assets.

As a Canadian business owner, your preference is for choices. Asset lease transactions provide you with those! Focusing on either the type of lease you are acquiring, the need for a specialized term (leases generally are available for terms of 24 months to 7 years depending on the asset and your firm's overall credit quality).

Many smaller and medium-sized firms don't take advantage of operating leases when considering the equipment finance option. This strategy can lower your payments, perfectly match the use and term of the equipment to your needs, and create balance sheet and accounting enhancements that will allow you to acquire the latest technology without taking on long term debt.

And don’t forget our friend 'Bundling'. Do you know him? Most business owners don’t realize that a lot of soft costs around an asset lease transaction don’t need to be paid out in hard cash. They can be in effect 'bundled' into a transaction - typically these items include maintenance, warranty, installation, delivery, training, etc. That’s true flexibility.


If you want to be on the cutting edge of asset acquisition in today’s competitive environment then speak to a trusted, credible and experienced Canadian business financing and leasing advisor who can ensure a structure and approval that makes sense can be completed in a timely manner to your firm's advantage.

 

 

 

  
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' Canadian Business Financing With The Intelligent Use Of Experience '

 STAN PROKOP
7 Park Avenue Financial/Copyright/2024

 

 

 

 

 

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