Tweet

Why Finance Companies Are Your Best Bet For Leasing Equipment via a Capital Lease

Guest post by: Stan Prokop

Article Overview: Information for Canadian business owners and financial mangers on why leasing equipment from finance companies via a capital lease, or lease to own strategy makes sense . Picking the right finance partner .

Why Finance Companies Are Your Best Bet For Leasing Equipment via a Capital Lease

Looking to improve? Aren't we all! Improving your business with respect to the acquisition of new business assets is a major decision for Canadian business. What is the current state of the leasing equipment market in Canada, and what finance companies are your best bet and why?

Even though you're taking on additional debt when you acquire a capital lease option the committing of your cash resources can still be properly managed using an equipment financing strategy. You're making the decision because you want to utilize the asset to improve productivity and profits.

We can certainly help our clients finance the asset, but it's up to you to ensure you choose the right asset, negotiate a best sale price, and ensure the business asset meets your needs. The reality is of course that your leasing equipment decision is an important one - its an alternative to paying cash outright, or drawing down on credit lines you might have in place - and most of our clients agree that the ability to secure business credit for working capital is a large challenge these days, so using those funds outright for an equipment purchase doesn't seem to make sense.

You have chosen a capital lease, or a lease to own option. The alternative was an operating lease, or a use and return of the asset and that hasn't made sense this time around. Finance companies in Canada can structure payments that make sense for your firm. Typically clients have budget constraints, have some seasonality in their business... etc. This is typically when leasing makes more sense than a loan, because it's so flexible and tailored to meet your specific financing needs.

In the current Canadian leasing equipment landscape and environment of 2010 /2011 you may well be expected to make some sort of down payment, but again, this is negotiable. Talking to your accountant might bring up further reasons why the tax advantages of lease financing might make you decision to finance an even easier one.

Finance companies recognize that you are in many cases using a leasing equipment strategy simply because you can obtain assets you might not be able to afford. These firms have only one mandate... approve and fund your leases! Consequently their credit people are experts in looking at your overall picture, which includes your firm's financials, the value of the asset itself, which is of course the collateral, and your projected profits via use of the equipment.

Your decision to enter into a capital lease should be relatively straight forward; the challenge is often picking the right partner. The Canadian landscape is made up of hundreds of firms who have specialization, only regional representation, or in some cases your transaction will be viewed as too large, or too small. Navigating that maze is a challenge, so see the service of a trusted, credible and experienced business financing advisor who will help you get approved and negotiate the best terms possible. That added value along can improve your overall return on investment and make your decision to finance a solid one.

Related Articles
  Equipment Leasing- Types and Advantages
  Essential Information For Equipment Leasing And Finance
  Equipment Leasing- Benefits And Pitfalls
  Lease Equipment
  The Difference Between A Capital Lease and An Operating Lease
  Which Of The 3 Asset Financing Structures Works For Your Firm ? Right Choices With Equipment Leasing Companies in Canada
  Why Canadian Lease Finance Is ‘ Business Appropriate ‘ – Use Equipment Leasing Companies To Acquire Your Business Assets
  How To Get The Best Finance Deal When You Lease Equipment from Commercial Leasing Companies
  Why Canadian Business is More Greatful than Ever For Equipment Leasing and Financing and asset finance Solutions!
  Commercial Business Equipment Leasing Services Provided by Financing Companies in Canada
  Equipment Financing in Canada – 2010 – Optimism for your Business Financing Prospects !
  Is a Leasing Company Your Best Choice For Business Equipment Financing – Choose Business Leasing That Makes Sense !
  Making Sound Choices With Your Leasing Finance Company? Canadian Operating And Capital Lease Solutions
  Lease Financing Canada – Canadian Asset Financing Solutions
  What Computer Leasing Companies Don’t Tell you about Computer hardware Leasing
  Work With Equipment Leasing Finance Companies For Industrial Equipment and Computer Financing Needs
  Delve Into Canadian Sale and Lease Back Financing – Benefits Of This Type Of Leasing Of Equipment
  What You Need To Know About Equipment Leasing Companies in Canada
  Business Equipment Leasing And Financing In Canada . When And With Whom To Lease
  Where to Turn To For Equipment Leasing And Commercial Lease Finance In Canada

Article Tags: capital lease, finance companies, leasing equipment



Related Forum Posts
Del Castienne - International Business and Project Brokers - In addition to the above, Del Castienne is an international brokerage firm specializing in various entrepreneural services. Del Castienne is more than just a brokerage, as we facilitate Private International Venture Capital for Business and Projects from Commodity Speculation Transactions, MBO, MBI, M&A, Bridging Finance, Patents, Branding, JV, Corporate Advisory Services, Business Plan Development, etc.. Del Castienne is linked to 1200 private international Venture Capital consortiums and Funding Syndicates with a funding capacity of $ 115 billion and 5000 international Investment Bankers and Business & Project Brokers. This in itself should provide you with a gateway to the best source of funding in the world. Through Del Castienne any entrepreneur can have up to a potential success rate of 25% (conditions apply) with absolutely no up front costs. Del Castienne charges a maximum of 5% commission which is far below the international standard of 10% - 12% on project value. If you are tired of running back and forth with countless dissappointments, please give us an opportunity to assist you. Our minimum Venture Capital amount is $1 million and we a Commitment Letter can be provided with in 30 days after formalities are in place and your information was received.
Re: Finance is the primary requirement of business - [quote="rauljoseph":36x8dadn]Finance is very important in a business. It is all about managing the business' money and other assets. Finance includes the study and analysis of processes, financial institutions, markets and instruments that are involved in the transfer of money or anything that has a monetary value among consumers, businesses and government.[/quote:36x8dadn] Good point. I'll just add that if I was going into business for myself and could only have one skill it would be Sales & Marketing. You need to be able to create customers first and foremost. Finance is more of a support function for entrepreneurs.
Finance is the primary requirement of business - Finance is very important in a business. It is all about managing the business' money and other assets. Finance includes the study and analysis of processes, financial institutions, markets and instruments that are involved in the transfer of money or anything that has a monetary value among consumers, businesses and government.
Profiling Famous Women Entrepreneurs - Great suggestion Leanne! The PROFIT Companies are always great sources!
Which kind of industries are you interested in? - Ecological or E-business or Investment or Finance or Management or Non-Profit or Retailer or others.


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

Do You Have An Entrepreneurial Vision?

Tips for the Novice Traveler

Pay Per Click Advertising

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.