Tuesday, November 5, 2013

Your Business Leasing Options Just Mig t !e"uire #n $%treme Ma&eover ' $"uipment Lease Options (n )anadian #sset *inan+e

,-5 T ings You Need To .no/ #bout $"uipment Leasing Options (n )anada

O0$!0($1 2 (n3ormation on e"uipment 4ease options in )anada- Business 4easing su++ess via asset 3inan+e so4utions re"uires t at you &no/ t e 3o44o/ing5

$"uipment 4ease options in )anada are abundant these days; but do the business owner/financial manager know how to assess those options and, as importantly focus in on areas that deliver maximum benefit to your particular situation. Let's dig in. While not always the case many companies consider their situation uni ue when it comes

to the type of assets they finance, and the terms and structure they demand to maximi!e business leasing asset finance effectiveness. " simple yet effective way of managing your lease transactions is to focus on the # $more about that .% later&' (arts of any lease transaction to ensure your individual lease or long term finance strategy melds with what you are trying to achieve. What are those # elements) #mount you are 3inan+ing T e amorti6ation or term o3 t e 4ease Mont 4y payment stru+ture T e interest or 3inan+ing rate imp4i+it in t e 4ease $nd o3 term ob4igations Mis+ 3ees *n +anada the 4ease 3inan+ing industry finances hundreds of billions, probably billions of assets every year. ,he spectrum couldn-t be broader . it ranges all the way from ' micro leasing' in the amounts as low as %k to transactions for e uipment, machinery, aircraft, in the tens of millions. /o dollar amount is unfinanceable if the asset and general credit uality ualify. Who you finance those assets with often play into the amount you are financing. 0our choices are commercial independent lease firms, captive finance companies associated with large mfr's, and even our +anadian chartered banks currently service asset business leasing via niche subsidiaries or divisions they set up. 1usiness owners can waster a lot of time 'barking up the wrong tree'

when it comes to choosing your lease financier. ,hat's because the business owner /manager doesnt understand that lease company-s arent all things to all people . as isn-t your firm also by the way& 2o they focus on specific assets, deal si!es, credit uality, and

in some cases geography they serve. *n certain cases they can even be subsidiaries of 3.2. firms doing a lot of business in +anada. #morti6ations in +anada typically run 275 years . that term is often driven by the monthly payment your firm re uires, as well as tying in to overall asset uality . 4onthly payments have maximum flexibility when it comes to business leasing of assets in +anada. 5epending on the type of lease you choose $6capital lease to own', or operating 'lease to use-' almost any payment structure can be utili!ed to maximi!e your firms particular cash flow situation. *nterest rates in +anada, when it comes to lease financing revolve around asset uality and credit uality. ,ypically both come into play when your lease re uest is being ad7udicated. "ll credit situations can be financed in +anada . it-s a function of structuring the transaction to ensure the lessor has a reasonable expectation of getting paid. While the ma7ority of +anadian business owners and financial manager-s focus on getting a lease approved and started they often forget what happens at the end of term. ,hose considerations include returning the asset, upgrading, extending the lease, or finali!ing ownership. 5on't forget the end of the lease obligation& *n some cases misc fees should be considered as part of your overall strategy. ,hey might include appraisa4 3ees on used e uipment, down payments, security deposits, and misc admin costs related to lessors registration of the asset. ,hat-s our # point recap. 1ut didn-t we say there were ,-5 +onsiderations8 ,hat .% could be your ace in the hole , as we're referring to your potential to seek out an speak to a trusted, credible and experienced +anadian business financing advisor who can assist you in maximi!ing business leasing effectiveness for your firms asset ac uisition strategy. 9tan :ro&op . founder of ; :ar& #venue *inan+ia4

ttp'<<///-;par&avenue3inan+ia4-+om 8riginating business financing for +anadian companies , speciali!ing in working capital, cash flow, asset based financing . *n business 9: years . has completed in excess of ;: 4illion << of financing for +anadian corporations . +ore competancies include receivables financing, asset based lending, working capital, e uipment finance, franchise finance and tax credit financing. (n3o re= +anadian business financing > contact details =

; :ar& #venue *inan+ia4 = )anadian $"uipment Leasing $%pertise

>ave # ?uestion <)omment On Our B4og Or )anadian Business *inan+ing #4ternatives 8 )ONT#)T' ; :ar& #venue *inan+ia4 2outh 2heridan ?xecutive +entre @A9: 2outh 2heridan Way 2uite B:9 8akville, 8ntario L#C DC; : one E A:% ;@A @#%B

$mai4 E sprokopFDparkavenuefinancial.com

9tan :ro&op