YOUR COMPANY IS LOOKING FOR A TECHNOLOGY
FINANCE SOLUTION!
IT, SOFTWARE & TECHNOLOGY FINANCE FUNDING OPTIONS
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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Technology finance in Canada. Business owners and financial managers are always challenged about their ability to finance their technological needs, and that ranges all the way from laptops, tablets, personal computers, and the backbones of their infrastructure, i.e. servers, software, etc.
TECHNOLOGY FINANCE - GETTING THE MOST OUT OF YOUR INFORMATION TECHNOLOGY ASSETS
Should you lease or buy your tech equipment - Boy do we get that one a lot at 7 Park Avenue Financial . Simply speaking they want to get the most out of their tech assets, at the lowest cost and capital outlay. It's the use of those assets that becomes the challenge in technology leasing - if only for the reason that obsolescence seems to set in awfully fast these days!
The obsolescence factor in technological assets is of course huge, and assets and software need constant upgrading. Leasing technological needs, both in hardware and software allows you to transfer that risk the to leasing company. The ability to budget for predictable monthly payments as well as avoiding huge capital outlays relative to your business credit lines, etc is a significant benefit.
Here understanding your buyout options is key, as well of course your obligation to maintain the assets in good working order re upgrades, service contracts etc - By the way those maintenance and service contracts can be bundled into your lease.
TECH EQUIPMENT IS EVER CHANGING!
While many assets in your company have a long-term use that's certainly not the case with your ever-changing tech needs. That is simply why lease financing is by far the recommended by top experts method of acquiring these assets.
While normal leases in Canada run between to and 5 years it’s very common for computer leasing to be in the 2-3 year range, although as we have stated, the business owner does in fact have the option to utilize a longer-term.
THE EQUIPMENT FINANCING PROCESS FOR ACQUIRING COMPUTERS, SOFTWARE, ETC
The overall process could not be simpler - you choose your vendor or manufacturer, negotiate your price and then your leasing company partner arranges payment with your vendor. In certain cases, it’s optimal to have the manufacturer finance your transaction if they in fact have a captive finance company associated with their business. Captives are incented to make transactions happen, and that means faster approval and occasionally more liberal credit approval criteria.
WHAT TYPE OF LEASE SUITS YOUR TECHNOLOGY ASSET
When you make a technology decision around new assets you have to focus on whether you wish to ultimately ' own' the asset, or if you wish to ' use' the asset for its benefits. That translates directly into one of two choices you have to make when entering into a tech lease - choosing between a capital ' lease to own' or an ' operating' lease to use. This is an important decision that must be made upfront at the inception of your transaction. The fair market value option at the end of operating leases requires your upfront decision-making on the final use of asset at end of term - namely, do you want to return it, own it, or continue leasing the asset/assets in question. Monthly payments will vary depending on the type of lease you choose. Operating leases should typically be viewed as short term leases with a typical 1-3 year term.
BUSINESS EQUIPMENT LEASING PROVIDES OPTIONS
When you wish to not own assets and if they fall into the category of a shorter life cycle then an operating lease will always be your best solution. At the end of the lease, you have the right to return, upgrade, or extend your transaction, and if properly structured new technologies in your firm can be maintained under that same monthly payment you achieved in the prior lease. Pride of ownership rarely is a decision-maker in tech finances!
CASH FLOWS AND BUDGETS - PROBLEM SOLVED!
Cash flow and budgets drive a lot of technology lease decisions. Business owners want to get the most out of their tech assets, while at the same time preserving cash flow and staying within their mandated budgets. While your software and hardware needs are key to operations and growth it’s your cash outlay that is often the biggest concern when it comes to constantly upgrading technologies.
CONCLUSION
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs all the way along the tech food chain – including software, hardware, and other related asset categories.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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