Tweet

Lease Financing Canada – Canadian Asset Financing Solutions

Guest post by: Stan Prokop

Article Overview: Information for Canadian business owners and financial managers on benefits of leasing and the importance of focusing on which of the benefits of lease financing are important to your firm .

Lease Financing Canada – Canadian Asset Financing Solutions

Lease financing in Canada is the acquiring of use of assets such as machinery, vehicles, and computers. Most Canadian business owners and financial managers have recognized for years that this type of financing is a great way to avoid large investments of capital in equipment. You use and profit from the equipment, but the lease finance firm owns the asset for the interim period of the lease.

Canadian business has almost unlimited choice in what can be leased. We advise clients that their only challenge in equipment financing is simply to ensure they have structured the right lease with the right finance partner that offers superior rates, terms, and structures.

Most of the advantages to leasing in Canada are already know to Canadian business owners:

-fixed lower monthly payments

-certain tax advantages

-preservation of working capital

-staying competitive by utilizing and acquiring more up to date technologies for your plant or office needs

-lease payments are expensed and if structured properly do not significantly impact your balance sheet

Naturally there is no ' perfect ' solution in business financing for all firms for all the time - In certain circumstances you might end up paying a bit more for the asset over time, also, most lease payments, as we noted are fixed, and if you used a loan strategy you might have access to variable rates .

Although most Canadian business owners utilize a lease to own strategy in general you should always be focusing on matching the term of the lease with the useful life of the asset.

We can't over emphasize that each customer has unique needs and may benefit more from certain of the key benefits of leasing depending on their overall business model and financial structure.

Rates in leasing are important, but at the same time the 'rate 'on the lease should not drive your over all decision to finance with any one particular firm. Flexibility, favorable buyout terms, easy to understand documentation, and prompt credit approval are all key factors in equipment financing.

Overall credit quality of your firm is also a key factor in Equipment financing in Canada. We can categorically state that lease financing is utilized by start ups to the largest corporations in Canada. Therefore approvals for equipment financing are focused on the general over all credit quality of your company, and in the case of small business, the credit attributes of yourself as a business owner.

In Canada the players in lease financing are: Banks, Equipment Dealers, Independent finance companies, captive finance companies, and lease financing specialist with a wide access to the market.

In summary, lease financing is a solid strategy for equipment acquisition in Canada. Canadian business owners should weigh the lease versus buy decision carefully and determine which lease benefits are most important to them. Work with a specialist in the area based on your asset type, your firm's credit quality, and any unique issues you might have in your firm or industry. Utilize lease financing to grow and profit in today's competitive environment.

Related Articles
  Canadian Lease Financing - Maximizing the Benefits!
  Equipment Financing Specialist – Canadian Leasing Solutions
  Capture 3 Benefits Of Lease Financing – With Canadian Finance And Leasing Companies
  Equipment Leasing – Canadian Financing Solutions
  Lease Financing - Canada business financing
  Canadian Do It Yourself Equipment Lease And Loan Advice – Commercial Business Financing
  Canadian Equipment Leasing - How To Get The Best Lease Deal!
  Equipment Leasing
  Lease Financing and Equipment Financing in Canada - Your reasons to consider
  3 Obvious And 1 Not So Obvious Reasons To Consider Canadian Lease Equipment Financing For A Capital Asset Loan
  Asset Leasing – What You Need to Know for Leasing Financing In Canada
  Equipment Financing Canada – One Big Mistake Not to Make
  Lease Equipment Financing – Canadian Solutions
  Lease Financing in Canada - Why is it a solid Financing Alternative ?
  Not Getting All The Lease Equipment Financing For Business You Need ? Financing Loans Made Simple !
  Don't Let ' Good Enough' Be Acceptable In Canadian Equipment Leasing When Structuring A Business Equipment Loan or Lease
  Which Equipment Leasing And Lease Finance Options Suits Your Firm For Canadian Asset Financing? Does a Loan Make Sense?
  Lease Financing Canada – Lease Partner for Best Rates and structures
  Is a Leasing Company Your Best Choice For Business Equipment Financing – Choose Business Leasing That Makes Sense !
  Equipment Leasing Canada - Why is Leasing Equipment a Solid Financing Alternative for Canadian Business Owners?

Article Tags: Canadian asset financing, Lease financing Canada



Related Forum Posts
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).
Re: I need a mailing address for office space in Toronto - Jamie, I hope someone replies that has an idea or even experience with this question. I am in need of the same concept. I need a mailing address in Canada and then register our business with the Canadian Government to begin selling products in Canada utilizing Canadian monies. Someone must have already accomplished this goal - share your success with others. Dennis
grants for restaurants - Well friend I don’t have any idea about government grants for restaurants, but I will recommend that you may try on some banks who offer loans for small business where the government will have some guarantee. Beside that Restaurants business is very risky so some of banks who gave some Financing Loans they will look at on it if there is enough solid business plans.
Re: Introducing a US franshise to a Canadian market - When franchisors begin to expand outside of the United States, Canada is one of the first areas they consider because: 1. Similar culture 2. Same language in most of country 3. Some provinces require registration, but it is not considered too difficult. 4. An economy that generally mirrors that of the United States (may be different currently) The main cost for a franchisor would be contracting a Canadian franchise attorney to convert their legal documents to meet Canadian law, then reprinting their marketing material. If a person sees a franchise they like, that is not currently in Canada, they might approach the franchisor and ask about becoming an area developer for the franchisor. I don't think that most franchisors would not sell a master franchise in Canada, in which the franchisee takes over the entire country, because Canada is such an opportune areaa, but by becoming an area developer the new franchisee could have the right to develop/sell several franchises in a given area.
$1,000,000 - Hi Evan, Are you talking about US Dollars? If so, that would be approx £500,000 in the UK. The Canadian Dollars differs also from the Australian Dollar. In any case, one needs to solve problems to help people to get money. The more solutions are given to people's needs to solve their problems, the closer one gets. Finally, are we talking about 'Income' or can we talk about 'Asset'? Kindest Regards Beat "Unlock People's Potentials!"


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

Let's Skip the Offshore Horror Stories

How to sell a business

THE “SECRET RECIPES” OF LEADERSHIP

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.