YOUR COMPANY IS LOOKING FOR AN EQUIPMENT LOAN VIA ASSET FINANCE!
Asset Based Equipment Leasing & Equipment Financing
( leasing companies equipment loan asset finance )
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
CONTENTS :
MORE CAPITAL / LESS RISK - THAT IS EQUIPMENT FINANCE
5 WAYS TO FINANCE ASSETS
WHY DOES THE MAJORITY OF NORTH AMERICAN COMPANIES UTILIZE LEASE FINANCE
WHAT TYPE OF LEASE SUITS YOUR ASSET PURCHASE
SOME KEY BENEFITS OF LEASING EQUIPMENT
AVOID OBSOLESCENCE IN YOUR ASSET PURCHASES
LEASE VERSUS BUY?
CONCLUSION
Unfortunately, a huge number of Canadian business owners devote a huge part of their time in business life to asset finance; in effect trying to find capital for their business. Many times the solution to that challenge is with leasing companies in Canada ready and willing to provide those business people with equipment loan and lease financing.
MORE CAPITAL / LESS RISK - THAT IS EQUIPMENT FINANCE
What then are some of the key issues that get you one step away from business financing success when it comes to acquiring assets for your firm? As a business owner or financial manager, you want to get the amount of capital you need with the least amount of risk you are willing to take on via debt.
5 WAYS TO FINANCE ASSETS
Leasing companies, via asset finance in Canada are one of essentially five ways to raise capital for assets. (Those other four are of course supplier loans, bank financing, term loans, or equity injections from owners).
WHY DOES THE MAJORITY OF NORTH AMERICAN COMPANIES UTILIZE LEASE FINANCE
Why then do 80% of business owners in North America constantly utilizing lease finance as a business strategy, instead of simply buying the assets? Flexibility is one reason, your assets can be financed on shorter terms, via a 'lease to use' type strategy, or longer amortizations via a 'lease to own' transaction. Depending on which of the two you choose you again (and here's our flexibility again) can either return the asset or take ownership of it.
WHAT TYPE OF LEASE SUITS YOUR ASSET PURCHASE
Canadian accounting practice sets up specific rules that deal with different types of lease strategies, either recording the lease on your 'books' or in some cases, via an operating lease setting your transaction up as an expense. As boring as it might seem to spend some time on lease accounting implications the right choices in this area can save you a lot of dollars, and grief! ... when it comes to financial reporting, tax time, etc.
Clients seem to slowly get the point here, in that your lease management becomes part of your overall business strategy, and takes some planning. It’s a good vehicle for getting some communications between the users of assets in your company as well as the finance side of the business!
SOME KEY BENEFITS OF LEASING EQUIPMENT
In that manner we 'preach' to clients that lease arrangements are driven from several areas of management thinking:
The ability to borrow from a finance company outside your other credit arrangements - the interest rate on leasing is more competitive than ever and is based on every type of business credit quality
The convenience provided by a leasing company
Risk avoidance in asset ownership via an equipment loan
Tax and accounting implications/benefits
Both new and used equipment can be financed
AVOID OBSOLESCENCE IN YOUR ASSET PURCHASES
One of the most powerful examples of risk avoidance in asset ownership via assistance from Canadian lease companies is in the area of technology and computer financing. Who in their right mind, asks the business owner, wants to take on the risk of technology obsolescence in the area of computing, which seems to change every 5 minutes, including the newest grey area of computing, 'THE CLOUD'?
Does an equipment loan or lease have a lower or higher cost? That’s a typical question from many clients who are at the crossroads of the lease vs. buy decision. This is where your finance folks or accountants take variables into effect such as your firm's cost of borrowing, the rate in the lease, and hopefully always making every aspect of their comparison an 'apples to apples' assessment.
LEASE VERSUS BUY?
Other factors in the lease vs. buy decision might include down payment scenarios, credit covenants with current lenders, depreciation policies, the residual value of the asset at the end of the lease or loan, etc.!
CONCLUSION
As we have shown, an equipment loan or lease might not always be as simple of a consideration as you might think. But it continues to be the financing of choice, every day, for thousands of Canadian businesses looking for financial services they can trust. Speak to a trusted, credible and experienced Canadian business financing advisor today about getting on track with a Canadian leasing company for asset finance.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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