Tweet

Who Are the Players in the Canadian Equipment Leasing Industry?

Guest post by: Stan Prokop

Article Overview: The article discusses particpants in the Canadian equipment financing and asset based lending industry .

Who Are the Players in the Canadian Equipment Leasing Industry?

The players, or participants in the Canadian Leasing industry have evolved significantly over the last several years. The evolution of the participants in this market is a combination of economic factors as well as gradual specialization and focus of specific players in the industry.

The industry in Canada is self governed by the organization known as the CFL A - The Canadian Finance and Leasing Association.

This association, which represents all significant lessors and lease related firms provides us with an excellent sense of the size and dynamics of the industry. The association reports that over 108 Billion, ( yes that;s Billion ) dollars of financing is currently in place by association members. The association broadly represents 3 major groups:

* Asset based lenders

* Vehicle lessors

* Equipment lessors

The association maintains that after the Canadian banks the members of the CFLA are the largest providers of debt financing in the country. The association commission a report in which it was maintained that as a direct result of the financing provide to Canadian business the overall standard of living in Canada rose by about 2.3% over the past decade.

The association has approx 190 members and represents firms all across Canada.

Independent firms represent a very large part of the industry. These are, in essence, private non-bank finance companies, generally not public firms. The industry is actually broken down into 3 separate groups - the lessors themselves, captive finance companies which are directly associated with manufacturers, and a third group who are originators or brokers of lease financing activity.

The independent finance firms are just that, independent. They are not directly associated with any specific product, service, or manufacturer. At the end of the day they simply finance their customers acquisitions, whatever those products might be. In any given transaction then there are three parties - the independent lessor, the provider of the equipment, and of course the customer or lessee.

In Canada some banks and life insurance companies are involved in leasing, but they are in most cases involved in financing the independent lessors themselves, as opposed to originating leases for their customers.

Captive lessors are a huge part of the industry also. These firms are directly related to a manufacturer. The author of this article worked for many years with HEWLETT PACKARD FINANCE. HP FINANCE is of course affiliated with its parent company, Hewlett Packard, and has the standard captive finance company mandate. That mandate is simply to assist the parent company in the sales of product that otherwise might not have been acquired if financing had not been offered or put in place.

As has been discussed, the final type of player in the industry is the lease originator, commonly called broker. These firms or individuals have a full knowledge of the industry and its participants and are able to package transactions in the interest of all parties, i.e the lessor and the customer or lessee.

The industry has gradually involved in Canada to what we have called specialization. Firms gradually seem to have realized that no one firm can ' do it all ' with respect to financing breadth, geographical focus, and product or asset focus.

These three players in the leasing industry are of course why the industry grows and prospers. They offer Canadian business the financing companies need, allowing them to utilize bank credit for other growth and purposes.

Related Articles
  The Evolution of Equipment Financing and Leasing in Canada - an Overview
  Why Leasing and Equipment Financing are more important than ever in the Canadian economy
  Equipment Financing in Canada – 2010 – Optimism for your Business Financing Prospects !
  Lease Equipment
  What Are the Changing Trends in the Canadian Lease Financing Industry?
  Where to Turn To For Equipment Leasing And Commercial Lease Finance In Canada
  Guaranteed Powerful Equipment Leasing Tips For Canadian Companies Financing Large and Small Assets
  Do Canadian Banks provide Equipment Loans and Lease Financing?
  Equipment Financing Specialist – Canadian Leasing Solutions
  How To Obtain funding and best lease rates for Canadian Equipment Financing Needs
  A Shortcut To Leasing Equipment And Business Finance Lease Solutions & Services In Canada
  How To Work With The Best Canadian Leasing Companies In Business Financing and Financial Services ?
  Lease Financing Canada – Canadian Asset Financing Solutions
  How Financing Options In The Canadian Equipment Leasing Industry Can Benefit or Harm Your Overall Profitability When You Lease Equipment !
  Why Canadian Lease Finance Is ‘ Business Appropriate ‘ – Use Equipment Leasing Companies To Acquire Your Business Assets
  Considering Canadian equipment leasing ? What Leasing Companies Offer The Best Equipment financing
  Leasing Equipment in Canada
  Canadian Leasing - Your best equipment financing option!
  Equipment Leasing- Types and Advantages
  Business Leasing and Equipment Financing in Canada

Article Tags: canadian leasing industry



Related Forum Posts
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?
Canadian Entrepreneurs - Hi Evan, I think you should profile Anita from the Body Shop. Is she Canadian? It would be nice to get a Canadian perspective for all of us who are starting businesses in Canada. Do you find th stories of the entrepreneurs vary depending on country? Thanks for all these great stories - it helps inspire us! Jessica
Re: Meltdown in the Financial Markets - 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.
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


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

THE “SECRET RECIPES” OF LEADERSHIP

How to develop the best lateral thinking skills

Leading from Authenticity is a Beautiful Thing

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.