YOUR COMPANY IS LOOKING FOR LEASE FINANCING!
EQUIPMENT LEASING SOLUTIONS
FINANCING NEW EQUIPMENT & USED 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 needs
EMAIL - sprokop@7parkavenuefinancial.com
Overlooked? You tell us, but we're never more amazed at why leasing equipment is such an often overlooked source of business finance in Canada. Here's why we think the 'unconverted' need to reassess this popular method of financing their businesses when it comes to equipment leasing and asset acquisition.
SHORT TERM WORKING CAPITAL NEEDS OUTSIDE OF EQUIPMENT FINANCING
Hopefully, you've got your short term working capital and cash flow needs to be sorted out. They might include bank lines, receivable finance, working capital facilities, asset-based lines of credit, etc.
LEASING FINANCE ADDRESS LONG TERM CAPITAL NEEDS FOR ASSET ACQUISITION
But what about long term capital when it comes to financing your needed asset acquisitions? It's an entirely different form of financing and you just need to know some solid basics when it comes to eliminating any surprises. Knowing your end of term lease options is also a key benefit of utilizing this method of financing assets. Let's cover some basics around business loan/asset acquisitions.
2 DIFFERENT TYPES OF EQUIPMENT LEASES
In general, Canadian business owners and financial managers need to only know there are basically two types of equipment leasing options - operating and capital. But the difference between the two of them is huge! When you engage an operating lease scenario you essentially have no ownership or acquisition rights - think if it as leasing your landline phone.
A capital lease on the other hand is a non-cacheable commitment to make a series of payments over time for the purchase of the asset; it’s as simple as that. The usual (but not always) end result of a capital lease is the transfer of ownership of the asset from the lessor to your company.
Strictly speaking, leases are a form of long term debt, but depending on the type of lease you structure, and how it's structured it doesn't necessarily have to show on your balance sheet. Some businesses may choose to finance the market value of owned assets via a sale-leaseback solution, bring valuable working capital into the business while still maintaining the use of the asset.
Why then do we think that many businesses in Canada overlook some solid advantages in utilizing leasing company solutions? And what are those advantages?
First of all leasing as a source of business finance frees up working capital that you quite frankly could use in a more productive matter. A quick example is that if your lease rate is, say 7% and you can generate returns on profit on equity of 10%, as an example... well... enough said!
LEASE FINANCING TYPICALLY REQUIRES NO DOWN PAYMENT - IT IS CASH FLOW CONSERVATION!
Other methods of business finance as a source of financing often require hefty down payments - leasing more often than not is 100% financing or pretty close it depending on your firm's overall credit quality. Businesses can budget properly as they know their fixed lease payments.
Naturally, if you utilize a business leasing equipment firm you are therefore not disturbing any other credit facilities you might have in place, such as short term revolving lines of credit. And again, with decent credit, you don’t have to pledge other collateral and solid credits can often negotiate a limited or no personal guarantee.
CONCLUSION
Leasing is a valuable source of capital and the solutions provided by Canadian leasing companies can help your business grow and profit.
Have we made out point? We hope so. Don't overlook lease financing as a valuable source of business funding.
Speak to a trusted, credible and experienced Canadian business financing advisor on solving your asset finance and equipment lease needs today.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop 7 Park Avenue Financial/Copyright/2020
