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Why Canadian Business is More Greatful than Ever For Equipment Leasing and Financing and asset finance Solutions!

Guest post by: Stan Prokop

Article Overview: Information on asset finance and why equipment leasing and financing options make sense for Canadian business owners and financial managers who want to maximize the acquisition of assets and equipment for business growth .

Why Canadian Business is More Greatful than Ever For Equipment Leasing and Financing and asset finance Solutions!

Many Canadian business owners and financial managers are under the impression that equipment leasing and financing solutions for their asset finance needs are more expensive than other forms of financing.

However, at the same time thousands of businesses everyday flock to the lease finance solution when they are acquiring equipment. How can a finance solution perceived as ' expensive ' be one of the most sought after business financing facilities day after day.

It’s because it’s all about the benefits and flexibility. In pure theory if you were paying full price cash or entering into a term loan you could make a technical financial case that lease financing is more expensive.

But it’s never always about price in your personal life, and that’s certainly the case in business. The reality is that the additional benefits of a lease often over weigh any concerns about cost or interest rates. And quite frankly with interest rates at all time lows in Canada companies with fairly decent credit profiles can get equipment financing in the 7-8% range. And, on top of that, if your company doesn’t have a pristine credit profile you still can get approved because Canadian equipment and leasing and financing professions are experts in asset finance, and a lot of emphasis is placed on your company prospects and the asset itself.

Accounting isn’t one of our favorite subjects when clients ask us for leasing assistance, but the reality is the when you use lease finance effectively - for example operating leases, then you are in a position to increase overall return on assets and your banker or other senior lender isn’t overly concerned about that always omnipresent debt to equity ratio he or she is talking about.

When clients talk to us about leasing we can talk about ten or 15 different issues - but to be honest they only often have one - can we get approval for a rate, term and structure that makes sense for our firm ? That’s the essential question more often than not. And that’s more often when lease finance steps up to the bar! Lessors take, on balance greater credit risk than financial institutions, and in our words, they are more likely to ' buy into your story ' - whether that be a turnaround year, a new project coming up, etc.

Lease decisions from your point of view are often driven by the simple question - can the acquisition of this asset grow sales and profits. Asset finance firms understand that and they essentially become your business partner with the additional capital they put into your equipment financing needs. You on the other hand can use that additional cash flow and working capital for general operating purposes. You have matched long term debt - i.e. the lease, with long term capital - your lease finance strategy.

Speak to a trusted, credible and experienced Canadian business advisor in equipment leasing and financing. You'' be surprised at the financing approval turnaround and the benefits you didn’t know you could achieve.

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Article Tags: asset finance, equipment leasing and financing



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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.
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Finance is the basic requirement - Without finance no one is going to stand next to you, your employees join your company looking at your financial situation and growth, if you don't have enough finance then better do a job.


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