You're in for a pleasant surprise if you think it's impossible to quickly and properly access financing via an equipment leasing company in Canada.
But what does it exactly take to be in a position to know what firms offer what type of financing , who and where are they, and what you need to know to ensure you have access to the proper rates, terms and structures that your Canadian firm deserves . Let's update you on the current lease ' landscape' in Canada, because it's a whole brave new world out there!
Some of our clients seem to find this tough to believe, but there are lessors out there who are very interested in getting your lease finance business. Therefore you need to know who they are and what type of financing they provide based on the asset type that you're financing. We're going to show you one simply, easy solution shortly that will take care of that quite efficiently.
In Canada banks have traditionally exited and entered the leasing market on a number of occasions over the last number of years. Currently in the 2011 environment you can safely say ' they are in! '
Bank leasing is done through separate divisions and companies of the bank, with the major benefit being their very low cost of funds (after all they are the bank, right?!). Challenges to access bank leasing are simply that the credit quality they are looking for must be quite strong, so if your transaction needs to be structured, i.e. due to your firm's financial health, then bank leasing might not be for you. Also, two types of leases dominate the Canadian marketplace, capital and operating, and the banks don't offer operating leases , so if you need a ' lease to use ' ( as opposed to a ' lease to own' ) don't waste a lot of time talking to a bank lease co in Canada .
Your 2nd best bet, bar none (We'll share the absolute best bet shortly!) are independent lease companies in Canada. They are non bank in nature, are extremely motivated to get your business, and come in all shapes, sizes, and ownership (many firms are doing business in Canada but U.S. based).
The top characteristics of independent lease Co's in Canada are they are flexible when it comes to structuring a transaction that makes sense for them... and your company! And you'll find often that when you bank can't, your equipment leasing company can in fact provide the financing you need.
The other segment of equipment leasing in Canada you need to be aware of and maximize are the ' captive ' firms. Captive? as in prisoner? Not exactly. Well perhaps, because captive denotes they are a prisoner to their parent company, meaning that many large corporations set up their own leasing and finance firm to lease their own products. I guess in business it's known as the double, whammy! They make money on the product, and the financing. Think GMAC as an example as it relates to General Motors.
So, minor problem. How do you as a business owner wade through tens and hundreds of lease companies with respect to where they are, who they are, how they do business, what asset type they prefer to finance, and what credit quality they demand ? !! Want an instant solution and access to an equipment leasing company for your financing needs.
The solution is to seek and work with a trusted, credible and experienced Canadian business financing advisor who knows and has access to the entire lease landscape in Canada. The benefits? Save time, get prompt approvals, and get the best rate, term and structure for the asset you are financing. As the guy says on TV ' we urge you to act at once'!
Published by Stan Prokop
Stan Prokop is the founder of 7 Park Avenue Financial. See www.7parkavenuefinancial.com The company originates Canadian business financing for companies and is a specialist in working capital and asset b... View profile
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