Tweet

Not Leasing For Business ? Commercial Equipment Financing In Canada (Small ) Will Change Your Mind

Guest post by: Stan Prokop

Article Overview: Information on leasing for business in the Canadian business marketplace. Why both small and large businesses in Canada should consider and equipment business loan or lease strategy for commercial assets.

Not Leasing For Business ? Commercial Equipment Financing In Canada (Small ) Will Change Your Mind

We want to know. What would make you change your mind about a Canadian business financing strategy or policy that works for 80% of all companies in Canada? We're talking about leasing for business... commercial equipment financing for small business or large corporations.

Lets explore some reasons and advantages by the way, that would allow you to discover or re discover equipment finance in the Canadian marketplace.

Traditionally it comes down to your money, or theirs. Your money is of course the equity or operating funds that you have in the company already. 'Theirs ' is of course funds you borrow. When it comes to acquiring a commercial asset of any type, from photocopier, computers, plant equipment, or corporate jets it's going to always come down to that proverbial lease or buy situation.

However, like and business owner or financial manager you have criteria to fulfill when it comes down to that finance decision. And boy has commercial equipment financing in Canada changed over the years. It has become a viable finance tool providing competitive rates and structures to every size of firm in Canada, from a 1 person start up to firms the size of General Motors.

There are a number of fundamental reasons why leasing for business makes sense - one good one is simply that it becomes in effect a partnership with your lessor lease firm, who typically have a lot of expertise in asset acquisition and disposition. (Don't forget that all leases have an end of term, and that's where some sophisticated help on purchasing, refinancing, or disposing of the asset can really help.

But do the key tools that equipment financing provide you with always make sense for your firm. We are fairly sure they more often than not will, but let's examine some of those key features and benefits.

Not the lease of which is of course the concept of 100% financing .Oh yes, on occasion this might mean a down payment or a security deposit, etc but in general you are being offered a commercial equipment financing mechanism that will take care of 100% of your asset acquisition. But that's not it... many of what the industry calls soft costs can also be bundled into this same financing solution. Typically some of these costs are installation, shipment, consulting or training, etc.

We spoke of all types of assets that can be financed. Technological type assets are the ones that make the most sense to finance - we're talking items such as computers or telecom equipment, which tend to be larger in size, and also subject to technological obsolescence.

By budgeting your cash flow today at a fixed rate, and estimating the useful life of your asset you are creating a perfect hedge against the risk of assets depreciating, becoming obsolescent, etc. In effect you've created a transaction whereby you have effectively transferred the risk of asset deprecation to your lease firm.

Other key benefits of leasing for business include management of cash flow and working capital, and if you utilize an off balance sheet operating lease both payments can be lowered and flexibility enhanced.

So... have we changed your mind? We hope so; at least we're sure we have given you some ' food for thought ' on a commercial equipment financing philosophy that should make sense for your firm.

Want to know more in what can sometimes be a complex business asset financing acquisition? Seek and speak to a trusted, credible, and experienced Canadian business financing advisor who can give you peace of mind in business asset acquisition.

Related Articles
  How To Work With The Best Canadian Leasing Companies In Business Financing and Financial Services ?
  Guaranteed Powerful Equipment Leasing Tips For Canadian Companies Financing Large and Small Assets
  How To Get The Best Finance Deal When You Lease Equipment from Commercial Leasing Companies
  Commercial Business Equipment Leasing Services Provided by Financing Companies in Canada
  Is a Leasing Company Your Best Choice For Business Equipment Financing – Choose Business Leasing That Makes Sense !
  Equipment Financing in Canada – 2010 – Optimism for your Business Financing Prospects !
  Commercial and Industrial Equipment Leasing Solutions
  Finding Information on Small Business Loans
  Equipment Financing Specialist – Canadian Leasing Solutions
  Why Your Competition Is Stampeding To Business Equipment Leasing Financing – Canadian Commercial Finance Advice
  Why Leasing and Equipment Financing are more important than ever in the Canadian economy
  5 Reasons Why Your Competitors Lease Equipment – Achieving Great Leasing Rates On A Commercial Equipt. Loan
  The Ten Advantages Of Using Canadian Business Equipment Leasing Companies For Commercial Asset Financing
  What You Need To Know About Equipment Leasing Companies in Canada
  Instant Financing Access To Canadian Equipment Leasing Company Solutions !
  Best Rates In Transportation & Rental Leasing In Commercial Trucking In Canada
  Reasons to Finance (Not Purchase) Equipment
  4 Tips For Best Lease Of Equipment And Commercial Leasing Rates For Canadian businesses
  Business Leasing and Equipment Financing in Canada
  Business Equipment Leasing And Financing In Canada . When And With Whom To Lease

Article Tags: commercial, equipment, leasing For Business, small



Related Forum Posts
canada resources - I used to have a connection to a franchise consultant in Canada at "Franchise Officer" in Toronto. I wish I could remember his name ( but I can check my files at the office tomorrow). Anyway, he had a lot of connections to banks in Canada. He may know of them and may be able to offer some feedback. If you are looking for a business loan, Canada has similar business loan programs to that of the USA's Small Business Administration (SBA). I think its SLBS in Cananda, and I probably have the list of it's lenders in my office also. Do you think either can be helpful? If so, I can get back to you with this information tomorrow. Let me know!
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).
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
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.
BDC - [quote="IWDCanada":jib6tqt9]I think if you try to do business in the Maritimes the Business Development Bank of Canada might be able to provide grants.[/quote:jib6tqt9] 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.


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

Why Small Businesses Don't Survive

SEO and the Entrepreneur

In the Year 2020 . . . Process

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.