Equipment finance in Canada. Is it possible, clients ask, to achieve asset financing ' nirvana' when it comes to running and growing your business? Lease financing companies just might be the solution to that eternal conundrum of acquiring equipt. you need for your company. Why? Let's dig in.!br>
Leading experts tell us that 80% of North American companies use lease finance when acquiring assets. So when the Canadian business owner / financial manager understands how the leasing marketplace runs they are immediately ahead of the game Just investing some time in the basics we have always maintained can save you thousands of dollars . Simply things like knowing how a lease finance firm generates a ( fair ) profit, how they evaluate your firm and asset finance request, and even simply saving tons of mgmt and ownership time by knowing who the players are .
In Canada today you can pretty well lease any asset, many intangibles included, such as computer software, or service and maintenance contracts related to your acquisitions. The industry thrive on serving all aspects of asset size, from the small ' micro ticket ' transactions right up to and including that personal jet aircraft you've place an order for !
If your firm has solid credit, typically exhibited by growing revenues, cash flows, and profits that are reflected in your balance sheet you're even in a strong position to negotiate rates that are extremely aggressive these days. Even the banks have fairly strong ventured back into offering equipment finance via separate divisions within the banks. Although credit criteria are high interest rates and structure flexibility are extremely attractive.
Medium sized and larger corporations and governments commonly even find themselves in the enviable position of tendering out their lease finance business - thereby acquiring finance rates and terms that are the best within the industry.
It always helps to have some expertise backing you when you venture into the lease finance world as a ' NEWBIE '! That might include advice from a seasoned business advisor, accountant, or lawyer on financial statement issues related to your lease request, the type of lease you are choosing, how to protect yourself in the documentation process, etc .
If you know your business you should clearly know your firms assets and their values. A large part of the ' profit strategy ' of lease financing companies in Canada revolves around the bet that you'll return the equipment. So low monthly payments sometimes come at the risk of having to return the asset at the end of term, allowing the lessor to capture that ' reasonable ' profit we alluded to earlier.
We find many of our clients don't fully understand operating leases, as such they are seduced by low payments, and even what can seem like negative interest rates, not fully understanding their obligations at the end of the lease term.
Don't forget also that you can often increase your own firms sales by lowering the sales cycle time by implementing a customer finance program for your own customers if your product allows you to do that . You an easily align yourself with a finance partner that will work with you and clients to maximize revenues, eliminate client budget challenges, and simply make the adoption of your products ' hassle free '.
Business owners and managers never want to lull themselves into complacency when it comes to staying competitive. However, as we have shown a strong grasp of asset financing via Canadian equipment finance companies saves you money, time, and prolongs your competitive edge. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset finance needs.
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Stan Prokop - founder of 7 Park Avenue Financial – www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info re: Canadian business financing & contact details :
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