Let's examine why business has been utilizing lease finance even in historic times. Interesting fact but a Babylonian king called Hammurabi actually described a lease transaction in his kingdoms code of laws. We can actually credit him with saying that it's using something that creates wealth and profit, not just owning it.
Canadian equipment finance firms adopt that expression to this very day.
Business owners and financial managers in Canada thing of commercial finance & leasing as simply a way to acquire and pay for assets they might consider as ' expensive '.
But the good news just starts there because there are numerous other advantages to equipment finance. Let's do a quick recap of those.
The bottom line is that equipment finance is a strong alternative to ownership or paying full outright cash. You benefit from the asset, and profits (hopefully?) are derived from our aforementioned ' use ' of those assets.
Business in Canada (in fact everywhere) has never moved so quickly, what took years now takes hours sometimes. That's because of technology of course and when you utilize lease financing you create a hedge against technological obsolescence. The most obvious example of that is computers and telecom assets
In some cases it couldn't be simpler - you need valuable and expensive assets to grow your business and stay competitive - but you would not be able to acquire that asset without the ability to pay for it on a monthly basis.
Still contemplating that ' fling ' with commercial finance & leasing? Remember that equipment finance boils down to two key product offerings - capital leases and operating leases.
Want a simple explanation and example of those two, utilizing some real world pricing. Let's use our friend computers/technology as an example.
Let's say your firm needs 100k of computers and servers. Again, your choice is cash, or finance. We're suggesting that fling with finance of course!
If you opt for a capital lease over, say a 3 year term your monthly payment might be around 3100$. At the end of the lease 36 month term you own the equipment. We strong recommend Canadian business owners amortize the lease over their estimated economic value of the asset.
But you other choice is a bit more intriguing. You can opt for an operating lease. What's my payment now we can hear our clients say? It would probably be in the 2400$ a month range. And guess what? At the end of 36 mos you have 3 choices - yes three. You can return the asset, purchase it for its current value or upgrade and extend the transaction. Talk about flexibility!
How long do you think it would take you to get up to speed on your new ‘fling ‘with Canadian equipment finance? Truth be told there are hundreds of firms, in the categories of captive lessors, independent finance firms, divisions of banks, etc.
Are you paying too much for your contact center software? Are you satisfied with its capabilities, or do you wish it did more? These are questions most businesses don’t take the time to think about, even though contact center software is one of the most important investments that you’ll make. With a little bit of planning, you can end up saving money and still end up with better functionality. more
Video conferencing is quickly becoming one of the most important communication channels for both small and big businesses. As more businesses turn to this technology, expectations about the experience are also rising. It’s not enough to just offer video conferencing as a communication method. You also need to meet minimum audio and visual standards, and there’s even proper etiquette to consider. more