Tweet

7 Reasons Why Lease Financing Companies Offer Advantages Of Leasing Equipment In Canada

Guest post by: Stan Prokop

Article Overview: Information on critical factors to consider when looking for lease financing companies in Canada . Summary of the key benefits and advantages of leasing equipment assets .

7 Reasons Why Lease Financing Companies Offer Advantages Of Leasing Equipment In Canada

It isn't enough to be only a ' little' in the know when it comes to business financing and your Canadian firms overall growth and success. Let's examine 7 solid and beneficial reasons how lease financing companies can demonstrate the advantages of leasing equipment for your company.



It's a simple question really. 'Why Do Lessees Lease'? There are a variety of solid reasons and advantages and benefits to equpment financing in Canada.



We're isolated 7 of those reasons (lucky # 7?) to demonstrate the general financing power of this Canadian business financing strategy.



Reason #1 - 80% of all companies in North America lease equipment at one time or another. Not a great reason you say? We at least hope that you'll agree that if your competition is doing something you should at least be aware or analyze why that the case. As you will see your competition has focused on issues such as working capital preservation, accounting benefits, and plain old convenience.



Reason #2 - Tax benefits. The last thing we want clients to do is get caught up in the whole issue of tax treatment of leases, let's leave that to your accountants and business advisors. But the reality is that there are significant benefits that are tax oriented when it comes to the product offering of lease financing companies in Canada. They include such critical factors as depreciation, off balance sheet financing, etc. Again, leave it to the experts, but it's a solid aspect of equipment finance in Canada.



Reason # 3 - Matching financing to useful economic life. What are we talking about? Just common sense really, which is simply the fact that one of the advantages of leasing equpment in Canada is that you can match the estimated useful economic life of any asset you purchase (from a photocopier to an airplane!) to your lease term. Technology is a great example of this, in that it depreciates quickly, has a huge obsolescence issue attached to it, and your ability to craft lease financing that matches the tech asset is huge. At the other ends of the spectrum, lease that corporate jet for 10, 15 or 20 years, there's an asset that hangs around for a long time!



Reason #4 - Solid lease rates. The great news is that Canadian equpment leasing and financing is on a total upswing as we head thru 2011. The industry has revitalized, recapitalized, and is very competitive. A lot of the lease finance pricing you obtain will be competitive to bank rates and other forms of finance such as term loans for assets.



Unfortunately many clients we speak to for the first time on asset finance are overly focused on rate. Our point is that it's a competitive environment, and your current credit quality will get you a good rate in the current finance environment, so you'd do a lot better, we feel, if you focused on some of those other advantages we're talking about.



Reason #5 - Assets. They come in all shapes and sizes for your firm and industry. Tech assets, production assets, etc. The only bottom line... simple... any asset can be financed using a lease strategy. So if the cost and turnover of assets is a constant consideration utilize lease financing as a regular ' refresh ' strategy.



Reason # 6- Measurements. Measurements? What we're talking about is simply that how your business owners, investors, or shareholders are measure can sometimes be significantly impacted by the assets you acquire. Return on assets, return on equity, ebitda, are key ways to measure whether your company is winning and losing. Lease financing can often impact all of these measurements, and depending on what your ' business scorecard ' is, can help you manage capital and assets.



Reason # 7- Last, but not least, isn't it always about Cash flow. It sure is, and if your company is either as start up or a Canadian Financial Post 100 firm you have cash flow challenges, issues, and measurements around that term. Lease financing allows you to eliminate a lot of those working capital worries, it minimizes or gets rid of down payment issues, pays the supplier and vendor promptly, and can provide 100% financing for your asset. Very simply, it conserves cash.





Well, that's it. Are the advantages of leasing equipment better than other capital asset strategies? We think so, but that's for you to decide. And getting back to the competition, they're doing it, so why not speak to a trusted, credible and experienced Canadian business financing and leasing advisor who can assist you to maximize these benefits.

Related Articles
  Essential Information For Equipment Leasing And Finance
  Equipment Financing Specialist – Canadian Leasing Solutions
  Lease Equipment Financing – Canadian Solutions
  Lease Financing Canada – Canadian Asset Financing Solutions
  Equipment Leasing Canada – Why Equipment Lease Rates aren’t Important!
  Equipment Leasing
  Is a Leasing Company Your Best Choice For Business Equipment Financing – Choose Business Leasing That Makes Sense !
  Equipment Leasing- Types and Advantages
  Reasons and Advantages For Using Equipment Leasing For Your Business Finance Needs in Canada
  Instant Financing Access To Canadian Equipment Leasing Company Solutions !
  Equipment Leasing Canada - Your best rates, Your best Terms!
  Asset Leasing – What You Need to Know for Leasing Financing In Canada
  How To Work With The Best Canadian Leasing Companies In Business Financing and Financial Services ?
  5 Reasons Why Your Competitors Lease Equipment – Achieving Great Leasing Rates On A Commercial Equipt. Loan
  The Advantage of Lease Financing When You Have the Right Equipment financing Company As A Partner
  Business Equipment Leasing And Financing In Canada . When And With Whom To Lease
  A Perfect Cure? Why Canadian Business Equipment Finance And Asset Finance Via Leasing Create A Tipping Point For Success
  Equipment Financing in Canada – 2010 – Optimism for your Business Financing Prospects !
  Canadian Lease Financing -Tips and Strategies
  Reasons to Finance (Not Purchase) Equipment

Article Tags: advantages of leasing, lease financing companies



Related Forum Posts
I am looking for a Mentor who is a Successful Restauranteur - Hi Evans, An idea for a forum that would be niche focused. My goal is wanting to acquire the expertise of running a highly successful restaurant. Like building any great business I think it would be great if there was One Umbrella resource underwhich I could find a highly successful restauranteur who would be willing to be a Mentor for building a successful restaurant business. A lawyer who understands business and specializes in the restaurant industry and more importantly who would not charge by the hour, But instead on as per completion of a contract basis. A competent CPA/CA who specializes in restaurants and who would be able to offer the right advice in maximzing revenues within the confines of legal parameters. A competent commercial real estate agent who specializes in restaurants and who would assist and advise on acquiring the right locations and also assist in negotiating the Term of Offer Clauses in the Lease Agreement. A competent Tax professional who would advise on maximizing revenues within the confines of legal parameters.
Accessing the Canadian Market - Leo, an idea that came to mind is try to align yourself with Hispanic Organizations in Canada. This will build your credibility within communities and get more referrals. Not sure if you plan on being based in Canada or operate your business from Columbia but either way being in the web development arena allows you to work from anywhere. You can also search for opportunities originating from Canada thru elance.com, getafreelancer.com, freelance.com or rentacoder.com
Re: 10 Reasons Who Startups Fail & Book Recommendations - Great post,but please edit the headline. I presume it is "10 Reasons Why Startups Fail & Book Recommendation
Re: Introducing a US franshise to a Canadian market - [quote="BuzzAroundBooks":1l00q6iy]Hi Everyone, If there was a franchise you liked and located exclusively in the U.S., how likely would you be able to introduce the first one in a new market like Canada? How open are franchisors to this sort of idea? Has anyone heard how this was done in the past?[/quote:1l00q6iy] US franchisors are really open to "export" their concept to Canada for 2 main reasons: the proximity and the culture: Canada is just a few hours away from any US city and both cultures are very similar. I am actually reading stats on this subject as I write and about 80% of american franchises tat go international go to Canada first.
Retired Executives - Hello everyone. Does anyone know where I could be in contact with retired executive? Reason I ask is because I am in seek of a mentor to assist me with my business and I am having a hard time finding a mentor in Canada. It seems like executives in the US and Europe are lot more helpful than in Canada, as I have contacted a few individuals in Canada and they have either been rude or simply did not reply back to my e-mail. Does anyone know where I can find some retired executives, as I might have a better luck with them? Thanks!


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Too Many Sales Reps Are Wimps

Resolving A Conflict Between Two Sales Staffs

Join Conversations Politely, Part 1

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.