Wednesday, March 4, 2015
The Magnificent 7 Reasons For Equipment Lease Finance- Make Canadian Asset Finance & Leasing Work !
Recently we wrote on the subject of providing 3 great reasons for Canadian companies to strongly consider equipment lease finance as their financing strategy in the acquisition of new equipment. Financing assets has never been more easy.The essence of those three reasons we discussed were the concept of 100% financing of assets,custom bobblehead, utilizing leasing and financing as an inflation hedge, and finally the ability to get a better handle on the useful economic life of any asset you acquire. How? By matching the term of your lease with cash outflows of lease finance.But... guess what. There's more. Let's discuss 7 other solid real world considerations for Canadian business owners and financial managers considering equipment lease finance.Timing. Many lessees (that's you) have important deadlines,Financing Working Capital For Business � Canadian Business Cash Flow Alternatives, vendor issues,5 Reasons Why Your Competitors Lease Equipment � Achieving Great Leasing Rates On A Commercial Equip, competitive issues, etc. Unlike banks or other finance firms leasing companies in Canada are only focused on one thing - funding your transaction. So whether it's a 900 $ micro ticket deal,customize bobblehead, or a 9 Million dollar piece of mining equipment you will always get it done faster (we believe) by working with an independent specialized lessor. This impacts time you may waste on legals,Chicago Bears Tickets Bears Struggle Through Tough Injuries, documentation, and credit approval, all of which are important to clients.Additional add ons - that's reason number 2 today. It makes sense in business to bundle (don't our tacos and cable companies do a good job of that. In a leasing and financing transaction you can add in a lot of extras, for financial and convenience issues and benefits. I.E. maintenance, insurance, delivery,customize bobblehead, training,customized bobbleheads, etc.Reason # 3- The accountant in the corner... you know who we're talking about, the guy with the proverbial ' budget '. Leasing eliminates capital budget issues, operating versus capital issues,Golf Tips On Alignment & Golfing Ball Position, and cash flow challenges. Could leasing have made that guy any happier? We don't think so!Reason # 4- lender restrictions and covenants. Utilize creative financing providing by such vehicles as operating leasing and financing to eliminate covenant, off balance sheet,customized bobbleheads, and ratio issues. It's a complex world in commercial lending,personalized bobblehead, but a solid lease financing partner can help you work through a lot of issues that otherwise could restrict your ability to properly acquire the financial assets you need. A lot of accounting rules are changing out there... some people predict the death of operating leases. We're not sure,personalized bobbleheads, but we are sure that lease accounting is one more thing in your finance toolkit that gives you something to work with. Reason # 5- the proverbial monthly payment. Want it fixed, or perhaps variable. Want some cash flow seasonality in your lease structure..? No problem. Step up? Step Down? Step leases are payment structures that alternative according to seasonality,personalized bobblehead, budgets,custom bobbleheads, etc. If you need them, they are there!Reason # 6- Working capital considerations. Your ability to achieve significant financing via leasing allows you to preserve credit lines and cash flow. You can spend all the time you want on lease versus buy analysis - but at the end of the day cash is king as Canadian business owners and financial mangers well know. And finally,personalized bobbleheads, reason # 7 of our magnificent 7! Flexibility and asset obsolescence management. The right type of lease financing allows you all sorts of flexibility re rights of return,., termination, upgrade, purchase of the asset, etc. Investigate them,custom bobbleheads, use them.Speak to a trusted, credible and experienced Canadian business financing advisor on how the reasons to utilize lease finance for asset finance can work for your firm .
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