YOUR COMPANY IS LOOKING FOR LEASE FINANCE IN CANADA!
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
Lease finance in Canada. Isn't it perhaps time to become an ' Unlearner '? That's the term one American icon once used to reiterate the fact that maybe we need to change the way we're thinking; and when it comes to what you know or might not know about equipment leasing companies in the Canadian marketplace that just might be some sound advice when it comes to commercial equipment and asset acquisition needs.
Your firm's ability to identify the right funding partners and who to deal with and when, depending on your equipment leasing needs will ultimately make it a winning scenario for your asset acquisitions via Canada's most popular method of equipment finance. Financial solutions you have been looking for !
While the 'lay of the land' might in fact seem complicated the reality is that you simply need to focus on the fact that it's all about getting the right lease structure, ensuring that the rates and payments meet your overall needs based on cash flow and your firm's credit quality.
The old term ' size counts ' is somewhat still appropriate in lease finance in Canada. By that we simply mean that ultimately both the type of asset and size of your transaction will really chart the course for which lessor makes the most sense for your transaction.
KEY ELEMENTS FOR APPROVAL IN CANADIAN EQUIPMENT LEASING AND FINANCING
We can say in a very straightforward manner that the overall ' story ' your company presents relative to financial strength, the quality of your balance sheet and your years in business are really the key drivers in any lease approval.
However, that eliminates thousands of firms in Canada who might not necessarily have those pristine balance sheets and income statements we've just referred to. Then what?
PROPER LEASE STRUCTURING CAN PROVIDE THE APPROVAL OF YOUR LEASE
Well, don’t despair, because the reality is that the term ' structuring ' comes in play at this point, and those thousands of firms who might think they can't get financed in fact are solid candidates from certain firms in the Canadian lease finance industry. Yes, there might be less interest in your deal from certain firms, but many others are eager to step to the table and structure a transaction that's a win for both parties.
But how do you in fact find equipment leasing companies in Canada - and we mean the right ones, not the wrong ones. Of course larger corporations who are better known can issues tenders and RFP’s, but that doesn't make sense for the SME sector in Canada.
THE THREE SEGMENTS OF EQUIPMENT LEASE FINANCING IN CANADA
This then is the time to get a short education on the makeup of the lease industry in Canada. Essentially it's broken down into three segments, small, mid and big-ticket. We advise clients they can spend a lot of time soliciting lease financing in the wrong market segment. And within that market, each lessor has its own views on credit quality and the type of asset they will finance.
SMALL TICKET LEASE FINANCING
Small ticket transactions in Canada, as well as the U.S. typically are under 25k and at this point it’s all about quick credit approval, simple documentation, (often a one-page lease) and a rate that commensurate with your credit quality. By the way, used equipment can be financed also, as long as it is not a private sale. Construction equipment is a popular asset to be acquired for both new and used asset acquisitions. Small ticket leases usually come with very quick approval.
SHOULD YOU USE A BANK LEASE COMPANY OR A COMMERCIAL NON BANK LESSOR?
Independent finance firms make up the majority of the lease equipment financing market in Canada, but there are many captive finance firms that provide financing for their parent company's products. Banks have again resumed their strong interest in lease financing - rates are low but required deal sizes are much larger; and when it comes to credit quality with a bank lessor lets just say ' you better have it '!
CONCLUSION
An easy way to match your needs for financial solutions with the perfect lessor is to solicit the help of a trusted, credible and experienced Canadian business financing advisor who understands the players, the market, and, most importantly , your needs when it comes to equipment leasing in Canada.
