How to Master Equipment & Asset Acquisitions For Your Business
Equipment / New Asset Needs? Cash Flow Pressures? Welcome To Plan B!
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Financing & Cash flow are the biggest issues facing business today
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Its official - your company is on the road to recovery in the Canadian business landscape. So how can you use equipment leasing and financing as a new economy strategy? Let’s share some tools and strategies for Canadian business owners and managers, allowing you to maximize business leasing dollar benefits.
The economic havoc that wrought business financing tension in 2008-2009 appears behind us. However, the cost of, and access to credit remain two key issues in Canadian business financing.
Equipment leasing allows you to plan carefully for growth. Think of all the uncertainties you have in either replacing or purchasing a new asset. Those key uncertainties are things such as cost of the asset, the obsolescence issue, concerns around asset acquisition negatively impacting your working capital, as well as competitive pressure.
Any of those issues might seem insurmountable if you didn’t have a business leasing alternative for asset acquisition.
Many companies in Canada have not thoroughly investigated the use of operating leases as a business leasing and financing strategy. This strategy alone can give you a triple weapon to beat the cost of assets, the cost of financing, and, as we noted, that pesky 'obsolescence' issue.
So how does the owner of CFO implement such a strategy? We're the first to admit it works best on technology-related assets, i.e. computers, telecom, etc. Let your Canadian equipment leasing company take the risk by your careful creation of an operating lease. This transaction is very powerful... Why?... Simply because your payments are lower, your monthly rentals are fixed, the overall cost to finance a depreciating asset is less, and last but not least, it is you who makes the call at the end of the lease term on owning, returning, or extending your transaction!
It should be obvious to any business owner or CFO that you can’t break through and business financing barrier if you don’t know who you are dealing with. There are tens, hundreds actually of business leasing firms in Canada.
Want to waste a lot of your valuable time? If you do then don’t investigate the type and size and credit criteria of the lease firm you are dealing with. That’s not our recommendation, however! What you want to do is ensure your asset and your financial situation is matched with a firm that perfectly suits your equipment leasing needs. So that can be a small ticket item, a complex technology strategy, or a used piece of heavy construction equipment. Bottom line; know you lessor re asset type, credit criteria, and flexibility re: structuring.
Here's a simple breakthrough strategy - simply make a list of what's important to you in your leasing financing decision - key items might be capital conservation, payment flexibility, enhanced structuring, a la off balance sheet, etc. Any one of those items, properly completed, can save you thousands of dollars on a transaction.
Business leasing is back in demand! Your competitors are for sure utilizing business leasing. Your company is unique. So whether your reasons to finance are technological, financial, convenience related, or hardcore economic - (i.e. diversifying your borrowing) don't dismiss your ability to achieve breakthrough financing via equipment leasing in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor for some of the best business financing advice you will ever receive on business leasing.
Stan Prokop
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' Canadian Business Financing With The Intelligent Use Of Experience '
STAN PROKOP
7 Park Avenue Financial/Copyright/2024
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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
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