YOUR COMPANY IS LOOKING FOR ASSET LEASE SOLUTIONS!
FINANCING THAT NEW PIECE OF EQUIPMENT?
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 nee EMAIL -
sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
The finance lease company solution in Canada is a classic ' birds of a feather' scenario. Why that analogy? It's the business version; we think of ' attraction' as Canadian business owners and financial managers steer towards asset financing and leasing as the logical ' attraction' to their asset acquisition strategies. And in this case, it's also pretty close to a ' one size fits all' solution. Let's dig in.
BUSINESS NEED TO CONSTANTLY ACQUIRE NEW ASSETS
The need to acquire new assets for any business comes from both necessity as well as opportunity. The business owner/ financial manager always needs to constantly assess new equipment needs, which often include technology assets - i.e. computers, office PCs, software (yes, software can be financed!).
CURRENT FAVOURABLE INTEREST RATES
Canada's current economic climate lends itself perfectly to asset financing. The interest rate environment is favourable, competition for your financing abounds, and growth opportunities are everywhere.
TECHNOLOGY REQUIREMENTS ARE PERFECTLY SUITED TO EQUIPMENT FINANCE SOLUTIONS
Simply the fact that technology changes a lot these days is one solid reason to consider leasing equipment - and we advise clients on numerous other benefits. It's all about growing and Return on Investment.
SHORT TERM VERSUS LONG TERM FINANCING
Financing assets is more of an intermediate to long term solution for your business.
WHAT IS THE LEASE VERSUS BUY DECISION?
What factors then come into the ' lease versus buy ' decision? Top industry experts tell us that the following issues should come into play:
- Assessing the ability of new assets to make your business more competitive and run better
- Assessing long term growth plans
- Ensuring that assets financed are critical to your business needs
- Competitive stance
- Accounting and tax and depreciation benefits over the period of time of the lease term
ASSETS HELP YOUR BUSINESS GROWTH
One solid aspect of leasing assets in Canada is simply the newfound ability to match equipment needs to your overall financial strength and ability. In some cases, lower or flat sales and profits might force the owner/manager to reconsider new assets if, in fact, they felt they could not sustain payment commitment for those assets. The irony is that new assets or technology can grow and increase sales revenues, allowing firms to deliver more new products, services, take on larger contracts, etc.
Financing new assets often boils down to ensuring you have the ability to service the debt you are taking on to acquire new assets.
We make it clear to clients that the finance lease company is not the only asset acquisition solution. Other methods include term loans, bridge loans, renting assets, etc.
WHAT ARE THE KEY BENEFITS OF EQUIPMENT LEASING
But the ' key benefits' of leasing are always there - they include:
100% Financing / option to purchase and retain ownership
Easier credit/finance approval
Flexible monthly payments structuring / simple lease agreement paperwork
Ability to consider upgrading or to replace during lease term
Numerous lease term and amortization options
Ownership transferred to the lessee in the capital lease/finance lease option
DOES AN OPERATING LEASE MAKE SENSE?
Is there an alternative to the capital lease, the lease to own solution? In some cases, business owners might want to consider operating leases versus capital leases as a solid asset finance option. Despite major changes in accounting policy throughout the world, utilizing operating leases is still a solid strategy.
You achieve the benefits of using equipment without owning it - and a lot of flexibility comes with that solution at the end of the lease term. It all comes down to your decision regarding final ownership of the asset and its useful economic life as determined by your firm and the leasing company and how you wish to show the lease on the balance sheet or consider the purchase at fair market value at lease term.
Accounting standards have changed in the operating lease environment but they are still popular, especially in assets that depreciate quickly or are required on a more short term basis. It's all about the useful life of the asset as determined by you.
EVEN ' MUSH ' CAN UTILIZE LEASE FINANCING
Are you working in MUSH? That’s the term the lease experts use to describe ' municipalities, universities, schools and hospitals. ‘Even these bodies can properly utilize lease strategies. Here the benefits are crystal clear - the lowest finance rates, flexibility around lease payments relative to budgets, etc.
CONCLUSION
If you want to consider new assets as a solution, not a problem, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in lease finance strategies that make sense for your company’s current situation.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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