Tweet

Equipment Leasing – Canadian Financing Solutions

Guest post by: Stan Prokop

Article Overview: Information on equipment leasing in Canada. How financing solutions for Canadian business assists in financing your business

Equipment Leasing – Canadian Financing Solutions

Equipment leasing in Canada is based on the premise that your business requires financing to acquire new assets to stay competitive and profitable. Business owners and financial managers in Canada who understand that the majority of assets they purchase depreciate in value understand why lease financing works.

Lease financing in Canada involves the acquisition on your behalf, by the lessor, of equipment you wish to use in your business. Almost any type of asset, tangible, and sometimes intangible (i.e. software -) can be leased.

How does lease financing work? It's quite simple. The lease firm purchases and owns the equipment and 'rents 'it back to your firm over a specified period of time. Typical lease terms in Canada are more often than not 5-7 years.

There are a variety of key benefits associated with lease financing - one of them is simply ease of acquisition. For transaction under $ 50,000.00 most lease financing is adjudicated and approved on an application only basis - i.e. no disclosure of financial statement required. Generally leases for more than this amount requires a more thorough application, often including your financial year end statements and perhaps an interim statement update also. In lease financing its all about cash flow, so your firm should be able to demonstrate a proper mix of historical, present, and future ability to make the monthly payment.

So yes, lease acquisition financing is a very simple process. We advise clients that wish to lease that the true challenge in lease financing in Canada is actually structuring your lease properly with respect to the type of lease you choose.

At the end of lease you wish to fully understand what your rights are wit respect to purchasing the equipment, purchasing it for a ' fair market value ', or in many cases, extending the lease because the asset still has value to your firm with respect to its ability to generate profit for your firm .

The other good news re lease financing in Canada is simply that it's available for businesses that are in every stage of growth, from start up to major established corporations. Quite frankly, as is the case in a lot of banking scenarios transactions for smaller or start up firms are based significantly on the credit history and business experience of the owners, so Canadian business owners should be prepared to demonstrate the proper credit history and business acumen.

There is no limit to the amount of financing that is available in Canada for lease financing. During the economic crunch of 2008 and 2009 many lease firms actually got assistance from the government to keep the wheels of lease financing moving. Markets have stabilized and funding is generally as abundant as it ever was for the right types of assets and credit quality.

In summary Lease financing is very simply and has clear benefits. As we noted the challenge is in getting approval for the right transaction in terms of credit approval, rate, and overall lease structure. Speak to a credible, trusted, and experienced advisor in this area to ensure you are making the best use of this valuable Canadian financing strategy.

Related Articles
  Lease Equipment Financing – Canadian Solutions
  Considering Canadian equipment leasing ? What Leasing Companies Offer The Best Equipment financing
  The Evolution of Equipment Financing and Leasing in Canada - an Overview
  Guaranteed Powerful Equipment Leasing Tips For Canadian Companies Financing Large and Small Assets
  Equipment Financing Specialist – Canadian Leasing Solutions
  Why Leasing and Equipment Financing are more important than ever in the Canadian economy
  Medical Equipment Leasing Canada
  Equipment Financing in Canada – 2010 – Optimism for your Business Financing Prospects !
  Equipment Leasing
  Breakthrough The Canadian Equipment leasing And Financing Barrier - Business Leasing Strategies That Work!
  Why Canadian Business is More Greatful than Ever For Equipment Leasing and Financing and asset finance Solutions!
  Canadian Leasing - Your best equipment financing option!
  How To Work With The Best Canadian Leasing Companies In Business Financing and Financial Services ?
  Is a Leasing Company Your Best Choice For Business Equipment Financing – Choose Business Leasing That Makes Sense !
  Considering Equipment Finance in Canada ? – Why Equipment Leasing Is Your Finance Advantage
  Reasons for Leasing for Business - Why Equipment Financing Works!
  What Are the Changing Trends in the Canadian Lease Financing Industry?
  Secrets of Dealing With Equipment Leasing Financing Companies
  Why Canadian Lease Finance Is ‘ Business Appropriate ‘ – Use Equipment Leasing Companies To Acquire Your Business Assets
  How To Get The Best Finance Deal When You Lease Equipment from Commercial Leasing Companies

Article Tags: business equipment leasing, canadian business, financing solutions, financing your business



Related Forum Posts
Re: Website Name Help - Its good that you have come up with the idea of setting up a website for your business. Now As it is into Business Solutions, I would recommend that you also include this into the name of the website. This will help you getting better results as far as SEO is concerned. You can start building a brand with this name. As you have already got the name booked, you can try changing it to something on the lines of Business Solutions as in azimabusiness or azimabusinesssolutions. Its a long name but still is good from the SEO point.
Help me name my moms business - I think Infinity Cleaning Services sounds better than Elite Cleaning Solutions... Why the Solutions? What is there to be solved? You simply get a rag with some Windex on it and wipe away.... plug the vacuum and Vac Away, get a mop and mop away. Stick to Infinity Cleaning Services... ICS sounds cool...
re: restaurant start-up - I'm not sure about government grants for restaurants, but my recommendation would be to approach a lender that offers loans under the Canadian Small Business Financing Loan program where the government will guarantee 85% of the loan. You can borrow up to $250,000 to finance equipment and renovations under this program. Restaurants are very risky business, however some of the Chartered Banks will look at restaurants if there is enough of an initial equity investment and you have a solid business plan (experienced management team, good concept and strategic location).
Canadian Entrepreneurs...let's chat.... - I thought it would be nice to gather up all the Canadian entrepreneurs on one topic to discuss how everyone is getting along. I just realized Evan is Canadian as well! Hope he's able to join the conversation. Look forward to the chat. By the way, I'm in BC. Phil
Re: Meltdown in the Financial Markets - [quote="Kevin":3lnvm7h2]If the US is simply creating fake/"funny" money with their bailout, then I wonder why the Canadian dollar has dropped so badly? One Canadian dollar is suddenly worth only about $0.84 US now. It doesn't make sense to me.[/quote:3lnvm7h2] The Canadian dollar has dropped to about $0.80 USD... what kind of holiday shopping season will it be this year if this trend continues?


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

Inspiration for troubled times

Secrets of Successful Business Partnering

The Digital Diet by Daniel Sieberg

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.