Equipment Finance | 7 Park Avenue Financial

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Equipment Finance In Canada: Remain In Control
A 2-FER! You May Have Had This Wrong On Equipment Finance Until Now: Plus More Benefits You Can Capitalize On



YOUR COMPANY IS LOOKING FOR  EQUIPMENT FINANCE SOLUTIONS!

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

Direct Line = 416 319 5769


Email = sprokop@7parkavenuefinancial.com

 

EQUIPMENT FINANCING AND LEASING IN CANADA

financing equipment

 

Financing equipment in Canada, similar to other industries, clearly has its own lingo. ‘ Knowing some of those terms maximizes your ability to increases the benefits of equipt leasing through selection and negotiation of leases that make sense for your firm. It's your version of a finance gravy train! Let's dig in.

 

Most people agree the economy is firing on all (if not most!) cylinders. Lower rates and the need to acquire or upgrade assets almost always make. That investment can be a huge cash flow drain on your financials, and asset financing addresses that cash outflow via predetermined lease payments tailored to your budget.

 

WHAT DO THE EXPERTS SAY?

 

Top experts tell us that 7 out of 10 businesses will have some equipment financing and leasing needs  in the coming year.

 

The ability of owners to expand their businesses is key to remaining competitive - Certain asset categories are always in demand relative to equipment loans needs - they include office technologies, plant machinery, telecom equipment and transportation ' rolling stock ‘. The good news is that, really, almost any asset your business needs is financeable.

 

understanding equipment financing in canada

 
A KEY ADVANTAGE OF LEASING EQUIPMENT FINANCING SOLUTIONS 

 

One way that many firms in Canada utilize leasing is simply as an alternative source of capital - It's all about not putting all your ' credit eggs' in one basket. While many Canadian banks offer asset leasing, it should be clear to owners/managers that any borrowing facility within a bank will be part of your total credit line with the bank. In fact, the majority of borrowers prefer to use our chartered banks for their operating facilities and other misc services.

 

Where can the business owner ' trip up ' when it comes to improperly assessing or understanding your finance options? By the way, we're the first to acknowledge that loans, bridge loans, sale-leasebacks, and other forms of venture debt can also be used to acquire assets.

 

CONSIDERING A SALE-LEASEBACK?

 

Owners of assets can sell their property and retain the benefits through a leaseback. A company that carries on an operating business, whether it is manufacturing, retailing or some other operation can maximize its assets by selling to a leasing company while leasing back for a fixed term with reasonable interest costs.

 

The idea of selling back a company's assets and then leasing them to the same organization has become very popular in recent years, as businesses found it difficult to get loans for expansion purposes. This is because when you sell your fixed asset like equipment or real estate , there are often fewer charges associated with that sale than if someone were going into debt by borrowing money from an external source--like banks or other lenders.

The benefits a lease back include:

Freeing up capital so we can invest elsewhere;

Reducing  outstanding debt load which means less risk on ratios analysis (a way companies measure how much they owe);

Enhancing cash flow

 

UNDERSTANDING THE TWO TYPES OF LEASES AVAILABLE TO BUSINESS OWNERS

 

Focusing on the type of lease you need will save your firm a lot of time and potential financial loss. The bottom line is that you have two choices - a lease to own or a lease to use option. In industry terms, they are known as ‘capital ‘and  ' operating’ leases, respectively. Understanding issues  in leasing equipment such as advance payments, how to lease companies make money (cash flow timing, interest rate, the residual value of the asset) and accounting issues around acquiring assets are all important.

 

business equipment financing

 

CONCLUSION - FINANCING AND LEASING

 

Need more time to make your buying decision? 7 Park Avenue Financial will provide financing solutions and will recommend the one that best suits your needs. Get the financing your firm needs to cover the cost of new or used equipment so you can increase production, fuel growth and expand and modernize your operations.  

 

Whether you're looking for affordable used equipment or modernizing and expanding operations, we'll help you get there. Let us show you  tailored financing plans for your needs that  match payments to cash flow cycle ;

 

If you want to make sure you’re both exploring and maximizing equipment loan and asset finance needs properly, seek out and speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor who can assist you with your new and used equipment leasing needs as well as other financing solutions.

 

FAQ: FREQUENTLY ASKED QUESTIONS

 

Whare are the key advantages of leasing assets?

 

Financing long-term asses allows companies to increase production capacity and improve efficiencies in the business. Lease finance is complementary to existing lines of credit and is typically matched to a firm's cash flows  - Additional flexibility comes from the ability to fund related expenses such as installation, maintenance, and services. Any type of asset can be financed including production machinery, technology, commercial vehicles, etc.

 

What are the potential benefits of a sale-leaseback?

 

Frees up cash

Allows the company to continue use of the asset

Cash can be used to enhance returns in the business

Eliminates debt / frees up equity

 

 

 

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/2021

 

 

 

 

 

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