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Business Leasing and Equipment Financing in Canada

Guest post by: Stan Prokop

Article Overview: Equipment Leasing Can Be a Powerful Financing Tool ;Information on what Canadian business owners needs to know about how the business leasing and financing marketplace uses business leasing and equipment financing for asset acquisition financing .

Business Leasing and Equipment Financing in Canada

Your firm is growing, and guess who else is? Equipment leasing in Canada gets bigger every day. Doesn't it make sense that you have a basic understanding of equipment financing and who to turn to when you want to utilize this great asset acquisition technique? The reality is that almost 80% of all companies in Canada utilize lease financing when acquiring assets, from computers to plant equipment to specialized equipment.

There must be a reason businesses choose this type of business financing - ' ADVANTAGE'! When you utilize lease financing you are sharing the risks of asset ownership with the lessor and depending on which type of lease you actually choose - there are two types - you can actually use the equipment for the agreed upon term and return the asset . This type of financing, known as an operating lease, also lowers your overall financing expense. The other key advantage of course is simply lowering your cash outlays - allowing you to use your borrowing facilities for other purposes.

When we meet with clients exploring the leasing option a large part of the discussion is on rate and credit - that is what drives leasing approvals! You need to be able to understand, in advance, the financial requirements of a lease approval, and ensure you have positioned your company in the best manner possible.

The best news about equipment financing in Canada is that it covers all asset categories - even intangibles such as software when it comes to technology financing.

In Canada you can obtain lease financing via a couple of the chartered banks, independent finance firms, and captive lessors tied to manufacturers.

We recommend to the majority of clients in pursuing and independent finance company lease partner - credit conditions are more lenient, they are specialized, and highly motivated to do the one thing they do best, approve and write leases! Your most valuable partner in this industry is a trusted, credible , and experienced lease financing business advisor who can guide you very efficiently through the maze of firms in the industry . That relationship can be a very valuable one.

Business owners should never forget that when they adopt a long term leasing philosophy they are making their firm more competitive, because assets acquired to run the business can be easily upgraded and replaced, allowing that equipment to generate optimum revenues and cash flow . When you think about it almost all the assets you purchase depreciate, so why would you tie yourself to a depreciating asset. The Canadian Equipment leasing industry doesn’t want you to do that - the days are long gone re ' pride of ownership ' in assets, now its all about outsourcing, lower cost, newest model, etc . Probably the best example of this is computing and software, all of which can and should be leased.

Speak to a trusted, credible and experience business leasing advisor who can assist you in maximizing your knowledge of the Canadian asset finance industry, allowing you to use this valuable tool to grow sales and profits.

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Article Tags: asset acquisition, business leasing, equipment financing, equipment leasing



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Re: BDC - [quote="Jones":255lkmrn][quote="IWDCanada":255lkmrn]I think if you try to do business in the Maritimes the Business Development Bank of Canada might be able to provide grants.[/quote:255lkmrn] On that note, does anybody have any experiences with the Business Development Bank of Canada that they would like to share? I have been considering approaching them for a business loan.[/quote:255lkmrn] I'll be working with the BDC later this month on a few projects. From what i've been told they are really great when it comes to small business. Their loans have a little higher interest but their payment terms are a lot easier to swallow. I can give you a contact if you need.
Exclusive: Interview with Results - Hi Forum Members, I'm helping start up a Business Coaching and Consulting company here in Toronto, Ontario, Canada (a Subsidiary of RSC Business in Los Angeles). As a Research and Development Intern I am required to practice my listening and interview skills by surveying Small and Medium Businesses on thier Business. This Survey is designed by RSC Business to also assist the Business being interviewed more insight into their own business. I am looking to interview about 30 businesses across North America over the span of 3 months. At the end of these interviews I will be publishing a report of the results and they will be made available for free to the Interviewees. The Report data will include responses from a minimum of 100 interviews. I would like to extend this opportunity to members of the Forum. If you would like to have this short 20-30 minute interview conducted on your Business and you reside in North America please send me an email or PM. Please contact me at andy[at]jvprosperity[dot]com to arrange our interview and to get free access to the results when they are published.


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