Asset finance via leasing companies in Canada. As unbelievable as it seems (to us) we speak to a lot of clients who have felt that they get that ‘ out of office reply ‘ when looking for Canadian business financing solutions for acquisition of assets.

How could that be the case, when in fact working with the right leasing companies in Canada solves problems that can be quite complex when it comes to financial statements, credit approval, and cash flow and working capital . We can only surmise they have been working with the wrong people and firms!

These days the sources of asset financing in Canada could not be more abundant. They include independent commercial finance companies, chartered bank leasing divisions, captive finance firms related to the manufacturer of assets, and specialized niche providers of equipment loans and leases that are sometimes accounted for as bridge loans as an alternative to a traditional leasing structure . People at these firms know one thing – the future value of the asset you are acquiring. We must also add that equipment needs in Canada can effectively be financing by Govt SBL loans which are uniquely tailored to finance business assets for the start up or SME sector in Canada.

As we have stated, the actual solution you have access to is varied – it might be a capital ‘ lease to own ‘, a shorter term rental via an operating lease , or a long term fixed asset financing that might even come with a 7 year amortization . Included in those solutions are unlimited amounts of flexibility revolving around end of term purchase options, seasonal payments, modest down payments and security deposits, etc.

And as boring as it might seem don’t forget all the tax, depreciation, and off balance sheet financing structures that are possible with the right type of solution provided.

When it comes to the ‘ operating leases ‘ we have referenced we are never more surprised as to how little the Canadian business owner or financial manager knows about this type of financing transaction. In fact if you are financing technology such as laptops, pc’s, servers, storage, and internet plumbing (think routers) and even telecom equipment you should almost always at lease consider and evaluate the operating lease structure.

Why operating leases? Simply because you have options around the fastest type of depreciating asset around these days – Technology! Those options include end of lease scenarios that allow you to consider returning, extending, upgrading, or purchasing the asset or assets based on your firm’s unique needs and usage of the technology.

A lot of clients and business people we speak to think of banks as the primary source of financing in Canada, and indeed they are right up there. However when dealing with bank lease companies or divisions in Canada transactions must be of a more significant size and your firm must demonstrate sufficient balance sheet, income statement and cash flow strength to get approved. Oh and by the way, operating lease structures are not generally financeable by bank leasing entities in Canada, so the primary value of a bank leasing solution revolves around… you guessed it, great interest rates which make that monthly payment even more manageable.

Government and education entities in Canada can also make strong use of leasing solutions; it’s not just for the private sector when it comes to asset finance.

So how in fact do you determine the best lease financing company and solution for asset finance needs? One quick and efficient solution is to speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with all asset acquisition needs. Get rid of that ‘we’re out of the office ‘ feeling today and grow your business with smart financing solutions.