Why Canadian Lease Finance is ‘Business Appropriate'

Updated: March 20, 2011

The ability for you to both understand, and, yes, manage that whole process makes the difference in how some of the powerful advantages of lease finance accrue towards your firm, not the leasing company. (Naturally we respect the right of equipment leasing companies to earn a reasonable profit - we just want to keep it reasonable!)

So why, and perhaps 'when' is equipment financing appropriate for your company. The good news is that whether your firm is a pre revenue start up, or a Financial Post top 100 firm equipment finance is a powerful strategy. It's one area of business where size doesn't count! Every type of firm benefits.

Hundreds of millions of dollars of business equipment assets are leased each year. Lease decisions are made on a variety of criteria - in the case of a smaller firm the personal credit worthiness of the owner is often a key factor. In the case of a larger firm historical and future sustainable cash flow are analyzed.

Most Canadian business owners often confuse, for lack of a better word, leasing companies with banks. Some of the Canadian chartered banks do have full fledged lease finance divisions - credit criteria and deal size (i.e. large!) are all a part of bank leasing. However, the hundreds of firms that are independent and focus solely on equipment financing in general or specialized market niches are very aggressive and want your business.

Time and time again independent finance firms can approve your deal faster, and be more flexible with structuring criteria attuned to your business model and its challenges- example: seasonal cash flow, special assets, etc.

Equipment lease finance is 'business appropriate' because it is a total solution form of financing. It will often include a lot of what the industry calls the 'soft costs' in an asset acquisition - i.e. installation warranty, delivery, training, etc.

Yes when the accountants attack a lease versus buy schedule it may often seem that equpment leasing companies are a more 'expensive' solution, but the ability to diversify your credit lenders, achieve prompt and 100% financing, and conserve capital via creative payment structuring is in our opinion a small price to pay for a cheaper bank type term loan. And don't forget, whether its 5k, or 5000k lease finance accommodates any acquisition.

Featured Research
  • The New 2017 Contact Center Comparison Guide

    We’ve put together a comparison guide that covers over 40 of the top call center software options, providing details on pricing, features, support, and integrations. If you want to save time and still make a great investment, this guide is a must read. more

  • Phone Systems Comparison Guide: VoIP for Small to Midsize Businesses

    It was a painstaking process, but to help B2B companies start 2017 off on the right foot, we recently compiled a comparative list of the top 43 small to midsize business phone vendors. more

  • 16 Mistakes to Avoid When Buying a Phone System

    Purchasing a phone system for your business is a major investment. With the average business changing phone systems only once every seven years, it’s important to make the right decision. more

  • 2017 Video Conferencing Trends

    New advancements are also making video more beneficial to a greater range of business areas including marketing, HR, and internal operations. Many solutions are economical, easy to use, and very effective at making communication more personal. more

  • [Infographic] Top 11 VoIP Vendors

    A good VoIP provider will offer additional benefits as well, but many first-time buyers find assessing each option to be difficult. Nevertheless, this is an important step in the buying process because a substandard provider can easily waste both your time and money. more