Can we be honest with ourselves, as Canadian business owners and financial managers and all agree that when it comes to equipment leasing and financing of commercial assets we are all looking for the best deal?
It’s just human nature, but the reality is that the thousands of dollars you can save in real money by obtaining a lease approval at great rates, terms and structures also keeps us competitive and ahead of the game .
Let’s examine some of those methods used to fast track you to the best options available -including probably our most important tip, which is where to go to and who to talk to when looking for the best equipment leasing and financing . More on that later.
Cost savings, as well as cash flow and working capital savings. That’s the essence of Canadian equipment leasing and financing we think.
Leasing has been around a lot time, some maintain thousands of years, but a couple of factors have brought it pretty well to the top of Canadian business financing these days. One reason is simply that with the recession formally over (we read it in the newspaper, must be true) that thousands of companies are again looking to expand and grow again, finally!
Also another reason is that new industries have sprung up that are tailor made for lease finance, and those industries (energy, solar, etc) are poster boys for solid lease finance strategies. Commercial lease financing adapts perfectly to technologies that change and need to be upgraded. Most business owners know you have two lease finance options, capital leasing and operating leasing. Structuring your transaction around an operating lease gives you flexibility on your ability to upgrade, return, or extend the transaction at the end of term.
When it comes to a ‘ pure dollar ‘ or ‘ financial’ analysis of equipment leasing most Canadian business owners quickly realize that to make a project financially feasible the benefits of the asset or project have to match the cash flows . And financing your transaction via a commercial lease with fixed monthly payments matched to the economic benefits of your asset clearly does that.
Your company’s ability to conserve cash flow and working capital allows you to put that new found capital into what really counts, i.e. inventory, staffing, new systems, etc.
There isn’t a day these days when a client asks ‘˜Can such and such an asset be leased ‘ – and we think you know already our answer to that one – that almost any asset can be leased, even intangibles such as software. More often than not , depending on your overall credit quality lease financing is a 100% financing scenario – on occasion , if your lease has to be structured it might require a down payment .
So who is providing lease financing in Canada and how can you get this unequaled business flexibility in commercial finance. The reality of the Canadian market is that its very fragmented, made up of captive firms within large mfg companies, as well as independent finance firms that are both U.S. and Canadian owned.
Rates vary with asset and credit quality, and the hard reality of your transaction is that it has to fit the particular, let’s call it a ‘ credit box ‘ of the firm you are dealing with. Even some of the banks have full fledged lease companies , although the credit criteria is significantly higher as you can imagine – i.e. great rate, but significant qualifications required on your part .
So how do you wade through the mass of firms and financial offerings in the Canadian marketplace .Would that take hundreds of hours, which you don’t have. The answer, speak to a trusted, credible and experienced Canadian business financing and leasing advisor who can structure a transaction that meets your needs. Simple, fast, and allows you to benefit from those unequaled asset financing options. What are you waiting for!