Equipment Leasing by hkksew3563rd


									?The best equipment financing option in Canada continues to be equipment leasing as
a great way to maximize cash flow and over all cost effectiveness for new asset
acquisitions. The other significant advantage of a lease equipment strategy is the
ability of this type of financing to gain financing creativity based on the needs of your
Canadian firm. In Canada corporations of all size, including the government by the
way, utilize leasing as a financing option.

Is there any asset that can't be financed? For years we have half jokingly told clients
that anything can be financed, and quite frankly, based on your firms overall credit
structure and quality, we believe that to be very true .

Many business owners don't often realize that even 'intangible 'assets can be financed,
such as software, installation costs, maintenance contracts for your financed asset, etc.

The whole issue of equipment leasing for Canadian asset acquisitions quite frankly
revolves around the ' right ' lease, and , as importantly, your leasing firm partnership .
Properly structured leases create a win / win scenario for all parties to the lease -
namely the equipment vendor or manufacturer, your firm, and of course the lease
finance company.

We are often somewhat disappointed when clients are only focusing on 'rate ', because
in a large number of cases overall lease amount approval, structure of lease, and type
of lease chosen have significantly more importance that the 'rate '. 'What's my rate 'is
not an effective way, we believe, to enter into a lease negotiation. Naturally having
said that, a rate must be commensurate with your overall credit quality - as credit
quality, combined with the asset collateral, drives the final rate decision.

A quick recap of the generic benefits of leasing should emphasize the advantages of
this type of asset acquisition financing. Those benefits are:

- ability to acquire equipment while minimizing your cash outflow for asset
- cash flows match the benefits and useful life of the asset you are acquiring
- potential tax and balance sheet advantages
- ability to upgrade equipment and stay ahead of the competitive curve based on
your ability to acquire items that you might not necessarily be able to purchase on a
cash basis

Equipment leasing often tends to also be 100% financing - that's a great way to
maximize cash flow , and , as we noted, many Canadian business owners and
financial managers are often surprised to know that lease financing can include
tangibles, as well as those maintenance and upgrade costs depending on the asset you
are financing - hint - ' think computers '!
There are a number of tools that allow you to evaluate lease financing options, one of
which is a 'lease calculator 'or' lease vs. buy calculator'. These are widely found on the

We strongly recommend that you utilize the services of a lease financing expert who
has credibility and experience. That will translate into your firm capitalizing on one of
Canada's great alternative financing strategies - 'Equipment Leasing '.
Stan Prokop is founder of 7 Park Avenue Financial -
Originating financing for Canadian companies,specializing in working capital, cash
flow, and asset based financing , the 6 year old firm has completed in excess of 45
Million $ of financing for companies of all size . For info and free consultation on
Canadian business financing and contact details see: /Equipment_leasing.html

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