Not Leasing For Business ? Commercial Equipment Financing - Canada (Small ) Will Change Your Mind

Updated: June 05, 2011

Traditionally it comes down to your money, or theirs. Your money is of course the equity or operating funds that you have in the company already. ‘Theirs ' is of course funds you borrow. When it comes to acquiring a commercial asset of any type, from photocopier, computers, plant equipment, or corporate jets it's going to always come down to that proverbial lease or buy situation.

However, like and business owner or financial manager you have criteria to fulfill when it comes down to that finance decision. And boy has commercial equipment financing in Canada changed over the years. It has become a viable finance tool providing competitive rates and structures to every size of firm in Canada, from a 1 person start up to firms the size of General Motors.

There are a number of fundamental reasons why leasing for business makes sense - one good one is simply that it becomes in effect a partnership with your lessor lease firm, who typically have a lot of expertise in asset acquisition and disposition. (Don't forget that all leases have an end of term, and that's where some sophisticated help on purchasing, refinancing, or disposing of the asset can really help.

But do the key tools that equipment financing provide you with always make sense for your firm. We are fairly sure they more often than not will, but let's examine some of those key features and benefits.

Not the lease of which is of course the concept of 100% financing .Oh yes, on occasion this might mean a down payment or a security deposit, etc but in general you are being offered a commercial equipment financing mechanism that will take care of 100% of your asset acquisition. But that's not it... many of what the industry calls soft costs can also be bundled into this same financing solution. Typically some of these costs are installation, shipment, consulting or training, etc.

We spoke of all types of assets that can be financed. Technological type assets are the ones that make the most sense to finance - we're talking items such as computers or telecom equipment, which tend to be larger in size, and also subject to technological obsolescence.

By budgeting your cash flow today at a fixed rate, and estimating the useful life of your asset you are creating a perfect hedge against the risk of assets depreciating, becoming obsolescent, etc. In effect you've created a transaction whereby you have effectively transferred the risk of asset deprecation to your lease firm.

Other key benefits of leasing for business include management of cash flow and working capital, and if you utilize an off balance sheet operating lease both payments can be lowered and flexibility enhanced.

Featured Research
  • Harnessing the Power of Speech Analytics

    The conversations between your customers and agents contain invaluable insights—if you have the right tools to easily interpret and act on this dialogue. Unfortunately, most organizations waste time manually mining only a subset of customer interaction data, or worse yet, do nothing with it at all. Speech analytics is an incredibly powerful tool for contact center leaders. It easily delivers real-time visibility into the full customer journey and agent responses, which are essential for driving higher customer satisfaction and business success. more

  • Budgeting for BI in 2018

    Is your business ready for Business Intelligence (BI) software? As BI software continues to improve, more businesses are moving to adopt BI sooner rather than later. Before you make that commitment though, it pays to figure out exactly how much money it will cost you to implement. more

  • Gartner Report: Gartner Magic Quadrant for Contact Center Infrastructure, Worldw...

    The 2017 Magic Quadrant provides Gartner’s annual analysis of the contact center infrastructure vendors. The report examines the innovations driving the market and compares vendors based on completeness of vision and ability to execute. more

  • Forrester Report: Artificial Intelligence with the Human Touch

    Artificial intelligence (AI) can’t replicate the human touch, but it can ease your agents’ burden by handling many simple, repetitive requests. A new Forrester Consulting paper offers a look at the strengths and weaknesses of both AI and humans independently, yet how blending them together can give your customers the seamless end-to-end experience they expect. more

  • eBook: Not All Cloud Contact Center Platforms Are Created Equal

    Everyone says they’re “in the cloud,” but most technology leaders would agree that not all clouds are created equal. When evaluating a cloud contact center solution for your business, it’s important to understand the difference between a true Cloud 2.0 application and traditional software, including which features to look for and why those features are important. more