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
  • Best ERP Features and Benefits for Your Business

    Are you considering investing in ERP software for the first time? Or maybe you already have an ERP solution but you’re worried it’s becoming dated. If either of the above apply to you, read our latest guide on the top ERP features and benefits based on the size of your business. You may be surprised at how versatile and cost-effective it is becoming - regardless of if you own a small business or run a large enterprise. more

  • 9 Spooky Signs You Need a Contact Center Upgrade

    When was the last time you evaluated the performance of your current contact center and the software you are using? The results may be frightening! If it’s been awhile since you invested in contact center software, there is a good chance that your needs have changed or that there are better options available now. Fortunately, it’s relatively easy to determine if you need an upgrade or not. more

  • 7 Ways the Wrong Phone System Can Haunt Your Business

    The wrong phone system could be haunting your business - and we’re talking about problems more serious than ghosts and ghouls. From increased costs to issues with scaling, we’ve identified seven important ways that a less than ideal phone system could be holding you back. You’ll be surprised at how much of a difference this can make to your bottom line too. more

  • Ditch Your Fax Servers

    An in-house fax server gives an IT department centralized management and monitoring over the entire enterprise's faxing. This can help your company track usage and better maintain records for auditing and record keeping. However, there are serious drawbacks that come with utilizing an in-house fax server solution and these range from security to cost-prohibitive pricing. more

  • The IT Manager's Survival Guide

    As an IT manager, maintaining physical fax servers and infrastructure is not a high priority. However, fax capability remains a business need simply because chances are your industry is dependent on its security. What if there was a way to reduce the amount of time spent handling fax complaints and maintaining physical servers? And this way took into account security, cost savings, and freed up your IT resources. Would you be interested? more