YOUR COMPANY IS LOOKING FOR EQUIPMENT LEASE SOLUTIONS!
ASSET BASED EQUIPMENT LEASING 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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Asset finance decisions don't always come easy for the Canadian business owner / financial manager. How then do equipment lease financing solutions allow your company to escape that ' being held ransom' feeling when it comes to getting the equipment and technologies you require to run and grow your business? Let's dig in.
THE MAJORITY OF CANADIAN COMPANIES USE EQUIPMENT LEASE STRATEGIES
It shouldn’t be a secret that asset based financing equipment financing lease strategies have been around for centuries in Canada. While some forms of business financing have either become outmoded or simply don't really work well any more leasing assets continues to offer the same benefits it always has and makes sense all the way along. Financed equipment will solve the majority of your business funding needs in the capital asset acquisition area.
THE BENEFIT OF LEASE FINANCE?
What are some of the key advantages then if you choose to lease assets? There are other ways to finance those same assets, the most common being term loans, bank debt, etc. Business owners, therefore, have options, but experts tell us that close to 80% of all businesses gravitate towards leasing simply because it's one other external source of business credit and it conserves cash flow!
100% FINANCING FOR YOUR ASSET NEEDS
And, effectively structured it allows your company to access the capital it needs typically on a 100% financing basis. To be fair, many asset leases do require a first payment in advance or a down payment, but once you're past that your purchase is simply fully financed. Some clients at 7 Park Avenue Financial choose to still use an equipment loan / secured loan also for their acquisition needs, as those are also available.
MATCHING EQUIPMENT LIFE TO THE FINANCE TERM IS CRITICAL
A prime concept here is also the fact that equipment finance allows you to match the benefits of the asset or assets you are financing to cash outflows over that same period of time. And if the asset in question is an operating asset that helps your company generate revenue all the better given that matching of cash outflows. We could call this 'self-funding' as the asset pays for itself over the period of the term of the lease.
WHAT YOUR END OF LEASE TERM OPTIONS!
While we are talking about paying a lot of attention at the start of your asset financing journey it makes as much sense to consider what the industry calls ' end of term options’. Simply speaking many assets still have a residual value of use and properly structured you can take advantage of that value by arranging a lease that takes that estimated final value into consideration.
DON'T SPEND ALL YOUR TIME CHASING NEW BUSINESS CAPITAL NEEDS
Business owners/managers spend a lot of time chasing capital these days. Equipment lease financing approvals are much easier to obtain compare to bank financing which often revolves around annual bank reviews, heavier credit diligence, etc. While most Canadian banks now offer leasing as an additional service it’s important to remember they do that in the context of their entire relationship with yourself.
CAPITAL CONSERVATIONS AND PRESERVATION OF EXISTING CREDIT FACILITIES
The bottom line - once your company is approved for a lease and you're making your payments on time no changes are going to be made to your deal. Equipment lease finance allows you to source your working capital and other debt financing needs from other lenders or institutions. The prime collateral of the leasing solution is simply the assets under that lease, and typically no other collateral is required.
THE CAPTIVE FINANCE COMPANY
Many manufacturers of the assets you require to run your business over captive or specially tailored programs to enhance their sales. Take advantage of them because no one is more incented to help you finance your needs than the vendor itself.
ACCOUNTING AND TAX BENEFITS OF LEASING
While we are primarily talking about ' ease of acquisition' for assets your business needs you'll find there are a number of tax and accounting benefits to equipment lease finance that are in the immediate short term relative to your lease payments.
CONCLUSION
If you want to escape the feeling of limited options and that desire to not be held ransom in your asset financing needs for any piece of equipment seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success in equipment lease financing.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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