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COMMERCIAL EQUIPMENT LEASING IN CANADA
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Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
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EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Equipment finance needs require knowledge of the 3 and 10. Knowing what a commercial leasing company does and how it works relative to your acquisition needs puts you in a position of equal power when it comes to asset financing. That newfound knowledge becomes your ' ride to the top. ‘Let's dig in.
WHAT ARE THE 3 TYPES OF CANADIAN LEASING COMPANIES
Let's first cover of the 3. There are essentially 3 types of lease firms you should be working with. Not working with the right one has a strong potential for wasting time and expense.
As we have said, there are different types of organizations that offer the equipment leases/asset financing you need for your fixed asset acquisition needs. Knowing which source to access a particular need is a valuable knowledge tool for the business owner/financial manager.
DO CANADIAN BANKS LEASE EQUIPMENT
While Canadian chartered banks are not always the first to think of when it comes to equipment financing, more and more of Canada's banks have entered the leasing market and taken the role of a leasing company; they either own or operate numerous lease firms. Your firm must be credit-worthy with an appropriate mix of profits, assets, and cash flow to qualify.
Bank leasing is available in small, mid and large ticket transactions. Larger transactions are often tied to your total banking solution. Bank leasing offers for new equipment come with attractive rates and unlimited capital resources of our Canadian banks across Canada.
The business owner can expect to access lease terms up to 72 months on certain assets - in our leasing experience at 7 Park Avenue Financial; typical lease terms tend to be between 2-5 years.
THE EQUIPMENT LEASE ALTERNATIVE
Naturally, a business loan is an alternative to a lease, invoking consideration around the traditional lease versus buy question faced by Canadian business owners.
WHAT IS A CAPTIVE FINANCING COMPANY
Many mfrs also offer financing services. They do this directly, via what’s known as ' captive ' financing, or they partner with firms that offer lease financing to their clients. Captives use financing to increase sales as much as generate lease profits on finance costs. As a general rule, you will always get a better deal on price, terms, and structure offered by the mfr. - in some cases, the rates are even subsidized to enhance the financial offering.
COMMERCIAL LEASING COMPANIES IN CANADA
Independent commercial lease companies offer the bulk of commercial lease financing in Canada. Whether Canadian or U.S. owned, they offer the widest variety of funding sources, with many specializing in deal size, industry niche, geographical location, or credit quality focused. By the way, many firms that might not qualify for bank or captive financing can have leases structured to qualify for financing. While they might mean a down payment, a shorter amortization, etc., in the end, it’s the approval that counts to the business owner.
10 KEY ISSUES IN EQUIPMENT LEASING CRITICAL TO ASSET FINANCING SUCCESS
Let's move on to the 10’s. Here we discuss specifics you need to address in constructing a finance lease that makes sense for your asset acquisition. Those ten issues include:
Conveying the use of the equipment to the lessor,
Working with the right lease company,
Understanding the final monthly payment relative to your cash flow,
Mid-term lease flexibility,
Insurance .maintenance needs if applicable,
Upgrade options,
End of term obligations,
Returns if the equipment is not going to be owned,
Miscellaneous costs associated with the lease.
A simple checklist around business equipment leasing could be constructed to ensure you've covered off all the bases. Not knowing the real story on any of our ' 10 ' ultimately will cost you time and money.
CONCLUSION
The bottom line? Small business in Canada will always need short term and long term asset acquisition in Canada for business equipment and technology. The right financing solution via equipment leasing companies can easily access and fill those business needs.
So there you have it. The 3 and 10 are covered completely! An alternate level of comfort? Seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your commercial leasing company and equipment finance needs.
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Stan Prokop
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