The New Truth About Business Equipment Loans and Lease Financing In Canada

Updated: May 10, 2011

New Weather report! Sunny for business equipment loan! The new bottom line is that lease financing is back in a big way, the industry seems to have corrected itself, and with respect to you the borrower rates, structures, and oh yes , approvals ! are all over the place .

So let's ensure you don't miss the bus and let's focus and recap on some major new trends (and old benefits) for this valuable part of business financing in Canada.

Appropriateness. Well here's another shot of even more good news, in that lease financing continues to be right for every type of firm in Canada -. And that's of course whether your firm is a start up, small to medium sized company, or a major Canadian corporation in the Financial Post 100. We think that pretty well covers everyone!

Abundance. We're talking about capital, and its availability. In case you didn't notice abundance of capital, let alone getting approved for financing kind of disappeared in the 2008-2009 global financial implosion and recession. However banks, insurance companies, hedge funds etc are back to capitalizing the lease industry in a big way.
You probably know that abundance of capital means more often than not competitive rates and lease finance rates have slowly improved - with competitive pricing getting better everyday in the Canadian marketplace.

Creativity was always a second name for business equipment loans and leasing finance. So ensure you use this form of capital to finance anything that makes sense. And in the new economy that means anything from software, computing power, telecom equipment, and even a corporate jet... should you be that lucky.

Over time industries changes - and in the lease finance industry the overall Canadian market segmented itself into 3 sectors, small, mid and large ticket. It's very important from a time waiting perspective that you understand what niche you need to exploit via a Vis your capital acquisition needs. A 2k photocopier can be approved within minutes in the current environment, and if you are financing large asset acquisitions consider choices you have such as off balance sheet financing via operating leases, IFRS ( some new accounting rules) not withstanding .

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