YOUR COMPANY IS LOOKING FOR A LEASING COMPANY!
EQUIPMENT LEASING / EQUIPMENT FINANCING SOLUTIONS - 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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Leasing company challenges. There are some real basics you can cover off to ensure you're saving money, time, and most importantly, helping to guarantee you have a great deal on asset acquisitions in Canada. Let's dig in.
UNDERSTANDING RIGHTS AND OBLIGATIONS IN EQUIPMENT LEASES
What we're talking about is simply understanding your rights and obligations in the type of equipment finance lease structure you seek, and ensuring the paperwork and terms around the transaction meet your business needs.
LEASE FINANCING SOLUTIONS ARE AVAILABLE FOR EVERY DOLLAR SIZE OF TRANSACTION
Naturally, there are all types of lease sizes, you might be leasing a laptop or photocopier for the office, you might be investing in computer and telecom infrastructure, or at the high end of the scale, it might be that corporate jet. Well, we can dream, can't we..?
UNDERSTANDING SOME OF THOST TECHNICAL TERMS IN LEASE FINANCE
First of all, it’s important to understand the term and actual start date of your payments in an equipment lease. Term, i.e. the actual amortization of your lease is important because it requires thought relative to the actual useful life of the asset. In certain cases, you might be acquiring assets or part of the asset with the actual lease payment not starting yet. Make no mistake though, there is no free lunch in equipment leasing, so interest is accruing on your transaction.
PAYMENTS CAN BE TAILORED TO YOUR CASH FLOW NEEDS AND BUDGET
Our second point is that you have a choice in lease payment timing - you can request monthly, quarterly or in some cases annual lease payments depending on the size and quality of your overall transaction. Business owners should know that all types of equipment, new equipment or used, can be financed. Technology is an asset that is financed via leasing often. Owners need to know that assets that depreciate quickly and often needed to be replaced can be financed.
YOUR OBLIGATION TO MAINTAIN AND INSURE THE ASSET BEING FINANCED
Our third point - simply to ensure you have the proper insurance on the asset being financed. In almost all cases anyway, you will be asked by the lessor to provide a certificate of insurance. We should point out also that certain assets require they be properly maintained. While as a prudent and responsible business owner you want to do that anyway, suffice to say your lessor feels the same way.
IDENTIFYING THE LOCATION OF ASSETS FINANCED
Fourth point - understand where your assets are located, whether they be at a head office, a branch office, or in the field, so to speak. You will want to advise your lessor of any change in the location of the asset. It's simply the right thing to do. Larger assets may in fact need to be inspected by your lender at certain points during the lease term.
WHAT TYPE OF LEASE WORKS FOR YOUR FIRM - A CAPITAL LEASE OR AN OPERATING LEASE
Fifth point - Choices! Don't forget that in Canada you have the option of picking a lease to own or a lease to use transaction. That is called capital and operating leases respectively. Tech type assets are perfect for operating leases because they give you the right to return, upgrade, extend or purchase assets depending on their obsolescence - which is one of the key points in asset finance - your ability to manage the economics and cash outflows. The cost of the equipment can often be addressed properly with good lease finance solutions in place. Your firm can of course use a business loan within your credit facilities, and many companies perform a lease versus buy analysis on major assets when finance considerations come into play.
ON LARGER TRANSACTIONS OBTAIN PROFESSIONAL ADVICE
What's our key point today? Simply that for a multi-million dollar transaction you might well want to have your lawyer look over documents and terms, but the reality is that the knowledgeable business owner has the ability to manage certain issues within an asset finance transaction that can save you thousands in time, dollars, and oh yes grief! Leasing companies are competitive and can provide interest rate-driven solutions based on your firm's needs.
CONCLUSION
Small businesses are always looking to conserve capital when acquiring assets. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in proper ' habits' in addressing a finance transaction.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2020/Rights Reserved
