Leasing Equipment Lease Finance Canada 7 Park Avenue Financial

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Here’s Your Leasing Equipment Checklist. Use This Info For Great Lease Finance Rates, Terms, And Approvals In Canada
You're Using Leasing To Acquire Assets, Right ?




 

YOUR COMPANY IS LOOKING FOR LEASE FINANCE!

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Financing & Cash flow are the biggest issues facing business today

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Leasing equipment in Canada.  When it comes to lease finance of assets how though do the Canadian business owner and financial manager know when this method of financing assets is both the right time ... and let's not forget  ' how to '!

 

THE INTEREST RATE COMPONENT OF EQUIPMENT LEASING

 

Interest rates are always a key factor in borrowing any funds for the business. If your alternatives for borrowing for business are limited then lease finance becomes a desirable form of finance - it has now become a working alternative!

 

BEST INTEREST RATE IN LEASING

 

Don't forget though that interest rates in leasing equipment in Canada are dictated by overall credit quality - so although you may be approved for leasing notwithstanding your firm’s credit, you may also have a higher rate within the lease.  But it's all about access to capital, not the cost of capital for the majority of business borrowers.

 

TAX AND ACCOUNTING BENEFITS OF LEASE FINANCE

 

Don't forget to speak to your accountant about the tax benefits of leasing assets in Canada. Also, in many cases, you might find that your bank might want additional collateral, commitment fees, or compensating balances, or outside collateral. Many of these are requests are not within general lease finance offers in Canada.

 

 

YOUR LEASE FINANCING CHECKLIST  

 

Is there a checklist the business owner or finance manager can utilize to finance assets via leasing? There definitely is, and here are some solid pointers:

 

1. Always consider the obsolescence factor when it comes to acquiring an asset - and definitely consider lease finance if your asset has a somewhat defined useful life

 

- If you need the asset for a project or a shorter period of time asset finance is a solid strategy. We would point out though that, in general, the shorter-term you can acquire in Canada tends to be 24 months. Typical amortizations, by the way, tend to be  3-5 years,  but larger assets or assets that hold their value can in fact often be leased for terms up to 7 years, or longer.

 

2. In business it's all about capital preservation, so always consider your access to operating funds when acquiring an asset - that’s when leasing equipment becomes the optimal solution

 

3. Don't forget to review the type of lease you want to enter into - In Canada we keep it pretty simple, it boils down to lease to own, or lease to use. The terms for those two leases are capital and operating, respectively.

 

WHO ARE THE EQUIPMENT LESSORS IN CANADA?

 

 

Who can you lease from in Canada? In Canada, it boils down to
 

Private lenders,

Non-bank independent  commercial finance firms,

Captive firms

Bank leasing subsidiaries.

 

So how do you go about making that choice? A good option is to use the service of a Canadian business financing advisor who can add solid value to the choice of term and overall rate, term, and structure.

 
CONCLUSION

 

There are many factors that are involved in the choice of financing an asset. Use our checklist to better understand your options.

 

Click here for the business finance track record of 7 Park Avenue Financial

' Canadian Business Financing With The Intelligent Use Of Experience '

 STAN PROKOP
7 Park Avenue Financial/Copyright/2024

 

 

 

 

 

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil