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The Advantage of Lease Financing When You Have the Right Equipment financing Company As A Partner

Guest post by: Stan Prokop

Article Overview: Information on lease financing in Canada and why it makes sense to have the right equipment financing company in order to maximize equipment finance benefits for your firm . Key advantages of lease finance.

The Advantage of Lease Financing When You Have the Right Equipment financing Company As A Partner

In your lease financing needs wouldn't you like to have what they call the ' home team' advantage? Advantages in business are great, especially when your competitor is on the other side of that advantage! That's why we feel the right equpment financing company in effect becomes your home team advantage, as it becomes a partner and solution provider for your lease financing needs.

You probably have already decided why you are going to lease, rather than buy and purchase outright. We start telling clients about things like the tax advantages of equipment financing in Canada, depreciation strategies that follow tax benefits, their ability to manage obsolescence, adding in install and warranty and maintenance into the lease , etc,etc,etc ..... but do you know what ? All those benefits are great, but firms such as yours more often than not are mostly concerned about cash flow and the concern of drawing down on bank credit lines, etc for equipment that ultimately depreciates or has to be replaced.

So yes, you do need to know all those advantages, and focus on the ones that make the most sense for your company, so you can maximize them - but the bottom line is that lease financing is mostly regarded as a cash flow tool. The textbooks call it the most efficient use of your resources when you have limited capital - we simply call it a great way to conserve cash flow.

One of the advantages of lease financing is simply clearly that it covers you from low tech to hi tech. What do we mean by that, simply that all assets can be properly financed if you partner with the right equipment financing company. That goes from computers and technology that seems to depreciate one second after you purchase it, to your shop floor and office equpment that might give you useful economic benefits for years.

And hey, what about that other advantage - leasing to own, or leasing to use? Many clients aren't aware they can structure whats known as an operating lease whereby they use the asset, minimize their cash flow outflows, and have maximum flexibility at the end of the lease financing transaction. What is that flexibility? They can utilize one of three options at the end of the term - they can buy the unit, return it, or upgrade/extend the transaction. Tell us that's not flexibility?!

So we've laid out all those great advantages, but it is easy to find the right lease financing company. Clients are surprised to hear that there are hundreds of lease finance firms in Canada - some are huge, some are small, some are geographic, some don't want your type of business, some are dying to find you and get your business and provide you with great rates, terms, and structures.

If you don't have the time to approach a few hundred firms, meet them discuss your needs, and give them your financial statements is there a solution. There is. Speak to a Canadian business financing advisor who is trusted, credible and experienced in lease financing. Flexible Terms, documents and credit approval come quickly when you have the right equipment finance company as a partner.

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Article Tags: equipment financing company, lease financing



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