Finance For Lease Companies Equipment 7 Park Avenue Financial

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Looking For Finance For Lease Equipment?  Which Canadian Business Lease Companies You Should Use
Equipment leasing and financing in Canada

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It's probably a common decision that you have to make all the time in business. First of all, you have to choose between purchasing an asset and alternatively looking for business finance for lease solution... one that works for your firm.

Let's examine why you should consider and equipment lease as a Canadian business financing solution, and then, as importantly, how do you find the right lease companies to work with.  (We’re assuming you don’t have all the time in the world to do this).

If capital was scarce in the past, boy did it become a lot scarcer in the last couple of years with all our recessions and global financial implosions.  So therefore for that reason alone it probably makes sense to lease business equipment and other assets.

But let's be clear first on ensuring you understand how the benefits of leasing clearly at the same time restrict you in a certain manner - simply speaking it will probably cost you a bit more, and while an owned asset can be sold you clearly can't sell a leased asset.  But we always seem to come back to 'cash is king', and your ability to acquire an expensive, yet revenue and profit-producing asset via a monthly payment you can afford makes sense most of the time.

What factors should you consider when you assess your lease vs. buy transaction, even way before you determine which business lease companies you will utilize?  You should focus on the following: what will the asset be worth and will it be still useful at the end of a lease term, what the best pricing is and overalls structure you can achieve, and finally, what tax and balance sheet benefits might come out of your finance for lease decision.

Let's use a real-world example - Computers. They certainly have very short productive lives based on changing technology. So your decision is really as follows: If you think a 100k computer system will last 5 years should you pay cash or would it be better to pay $2000/month or 24k per annum to lease this type of asset.

First of all, we haven't met a computer that’s lasted 5 years!!, but putting that aside you can see how cash outflows and monthly payment analysis play a key role in your overall decision. In our case, the computer doesn’t really generate profits or cash flow. Remember the old saying ‘the bottom line is on the bottom of the income statement, not at the top of the balance sheet!

So let’s agree you have made the decision to finance business equipment or assets. Now what?

In Canada your choices are significant - that’s a double-edged sword though. You can investigate captive finance firms, independent lease companies, bank leasing firms, and specialized niche lessors. If you started tomorrow you'd probably have a thorough decision made in a year from now. What's that...? Not a good use of your time? We agree, so consider speaking to a trusted, credible and experienced Canadian business financing advisor. You'll be guided very quickly to an equipment business lease financing solution that maximizes benefits of lease finance specifically for your situation - at rates terms and structures that match your credit quality and the nature of the asset you're financing.

P.S. Remember what famed investor Harold Geneen once said ‘the only irreparable mistake in business is to run out of cash'. Use a finance for lease solution that won’t take you out of the cash flow and working capital game.

 

 

 

finance for lease companies equipment business

' 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