YOUR COMPANY IS LOOKING FOR EQUIPMENT ASSET FINANCE!
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
Absolutely not. That's the short answer to the question of leasing companies in Canada solving ' all ' your equipment asset finance challenges. But we're pretty sure that 90% of the time they can, and those aren't bad odds, right?
WHO IS THE BEST LEASING COMPANY TO FUND YOUR ASSET NEEDS
In Canada, there are currently hundreds of providers of equipment financing for asset acquisition needs of Canadian businesses. In a way that’s one of the challenges for the business owner / financial manager - namely who exactly do you turn to? The industry is certainly robust these days with larger corporations, brokerages, and small niche firms providing lease finance solutions from items we could call ' micro ticket ' to multi-million dollar acquisitions of technology, airplanes, heavy equipment ... well .. you get the picture!
A CAPTIVE FINANCE COMPANY VIA THE MANUFACTURER IS A SOLID SOLUTION
Many manufactures and distributors have formal or informal relationships with firms that will help you get the financing you need. Major players in a number of industries actually have full-blown captive finance firms that are strongly incented and chartered with providing you with flexible financial solutions.
One of the advantages of dealing with a captive finance firm ( i.e. one that is related to the manufacturer ) is that your flexibility typically increases substantially, with various lease schemes ( schemes ?) offering your firm lease to own, lease to use, rental, or short term financing. Typically the shortest lease term in Canada tends to be 24 months, and the longest terms are in the 5-7year range. That's of course unless you require a lower monthly payment for your new corporate jet!
IN EQUIPMENT FINANCING THE ASSET IS THE COLLATERAL!
If there is one key advantage of equipment asset finance in Canada it’s simply that the emphasis on the ' collateral ' to your transaction is, more often than not, just the equipment you are financing.
CAN CANADIAN CHARTERED BANKS PROVIDE LEASE FINANCE SOLUTIONS - SPOILER ALERT - ' SOMETIMES'!
One of the alternatives to using leasing companies for financing needs is of course Canadian chartered banks. However here is where credit criteria are somewhat higher when it comes to balance sheets, income statements, and cash flows that meet bank requirements. We don’t mean to infer that the Canadian leasing industry is populated by drunken cowboys! But we are definitely saying that overall credit flexibility is significantly greater when you use a non-bank commercial leasing entity.
CONSIDER SALE LEASEBACK FINANCING
Also, most leasing companies will entertain the refinancing of an asset you already own to generate additional cash flow for your firm. This is of course the ' sale leaseback'. After you have reconciled with the fact that you might have to pay the sales tax twice this option still makes a lot of sense.
CAPITAL LEASES VERSUS OPERATING LEASES
We encourage business owners to understand the key differences between lease to own and lease to use. That’s the capital lease and operating lease respectively, and there are significant differences to each of those lease solutions.
CONCLUSION
When cash flow and financial flexibility are important to Canadian business working with the right leasing companies can solve, not all, but a lot of your problems! Speak to a trusted, credible and experienced Canadian business financing advisor for assistance in asset finance solutions.
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Stan Prokop
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