The ‘ tipping point ‘. It’s one of those business terms that seems quite popular these days, denoting a ‘ critical point which leads to an irreversible development ‘. We think it’s a solid term to describe how Canadian business owners realize that business equipment financing, ie asset financing via leasing suddenly becomes your new success strategy for financing your firms new /required assets.

It’s a fact that over 80% of all businesses in North America lease equipment. Unfortunately we run into many clients that are not 100% sure they are at that ‘ tipping point yet. That could be for a number of reasons. While the majority of folks we talk to are mesmerized about the interest rates or monthly payment on a transaction they often don’t understand other risks and benefits associated with business equipment finance.

Canadian business owners and financial managers can create their own tipping point by investing just a small amount of time , either on their own or talking to a Canadian business financing advisor on the total ‘ lifecycle’ of the lease transaction . When you minimize any penalties and risks, while at the same time maximizing benefits, it’s clear you’re pretty well at our ‘ tipping point ‘.

Just discovering new leasing and asset financing options can be the difference in how your firm used to look at leasing and how you might be looking at it completely from a different perspective in the future,

Operating leases are generally a very misunderstood aspect of business financing in Canada. We’ve got our own theories on that, because some lessors sure do a great job of confusing this offering, particularly when it comes to understanding all the flexibility that you can invoke before, during, and at the end of the term of the lease.

We never want our clients to think of their lease company partner as an ‘ adversary ‘. In Canada there are hundreds of equipment finance firms who theoretically want to provide you with the best financing terms you are looking for – that ‘nirvana’ combination of great rates, terms, and structures.

Yet many business owners and finance managers, particularly for small and medium sized companies there never sure if they are leaving money on the table.

The 5 aspects to any equipment lease transaction are the term of the lease, the interest rate, the value of the transaction, the monthly lease/rental payment and the end of term option. That’s a handful, but by simply focusing on the positive and risk aspects of any of those aspects of your transaction you are moving ever closer to our tipping point.

Even simply things like putting a one time master lease agreement in place allows you to provide a consistent program for your firm of benefits that make sense.

When you combine and understand the powerful aspects of asset financing and leasing in Canada, ie capital preservation, tax and accounting advantages, asset disposal, etc you are exactly where you want to be. Speak to a trusted, credible and experienced Canadian business financing advisor who can help you achieve our tipping point.