Want A Fling ? Canadian Commercial Finance & Leasing Solutions – Meet Up With Equipment Finance

Updated: May 08, 2011

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.

Featured Research
  • Contact Center Implementation Best Practices

    Are you looking to add a contact center for your business but not quite sure of how to go about implementing one? You aren't alone, in fact, getting a modern contact center up and running efficiently and effectively is much more difficult than it was even five to ten years ago. more

  • Business Meeting Showdown

    It is no secret that communication and collaboration are at the heart of success and longevity for any business. However, as businesses become more global and more employees work remotely, video conferencing is being increasingly used as an alternative to face-to-face interactions. There are pros to both business travel and video conferencing such as personal connection and ease of use. However, there are cons as well ranging from travel delays to being technologically reliant. more

  • Mobile Communication Showdown

    It's no secret that businesses are becoming agiler and employees are spending more time away from their desks. The question isn't should we get rid of our landlines, but how quickly can we replace them?However, staying connected with your colleagues, clients, and customers is absolutely essential for cultivating long-term, lucrative relationships that will help your company achieve success. more

  • Signs you are Ready for Mobile BI

    With workforces moving more and more mobile on a daily basis, it is essential to ensure that your company is able to arm your employees with the analytics that they need to succeed. 89% of business leaders believe that Big Data will revolutionize business operations in the same way that the internet did. These numbers show the trend towards investing in a BI system. more

  • 15 Ways to Optimize Your Contact Center

    We live in a time where customer experience is seen as an important competitive differentiator. Given this, wouldn't you like to make sure that your contact center is fully optimized to meet your business needs? Deciding to upgrade and optimize your contact center is a big step, and one that shouldn't be done without due diligence and plenty of research. more