The Commercial equipment finance company in Canada. When it comes to asset financing we sometimes get the sense that some of our clients feel like it’s almost a big ‘ chore ‘ so to speak. Does it have to be? Absolutely not of course, and we’re going to bring you in strictly on a ‘ need to know ‘ basis to hopefully make those asset acquisitions more successful.

While some businesses might think they need to be somewhat ‘ cash strapped ‘ before considering lease financing that is also not the case. The largest and most successful corporations in Canada, even our chartered banks utilize this method of asset acquisition.

No one would every accuse our banks of having difficulty to finance themselves; the reality? They simply see the benefits. These include tax advantages, ease of acquisition, ongoing replacement of technology, etc. All the same issues that your firm faces. (Just on a bigger scale!)

Relationships with vendors is often a key part of dealing with the commercial lease company in Canada. In many cases your suppliers or vendors might have preferred programs in place which pass finance savings on to you. And here’s somewhat of a secret… (Don’t forget you’re in on our ‘ need to know’ basis!) quite often vendors and suppliers ‘ buy down ‘ your financing costs by ponying up a portion of the finance charges. They, including the captive finance companies in Canada want your business!

Many clients also view the credit approval and documentation issues surrounding leasing as another part of their ‘ chores ‘. While they are entitled to think that way the reality is that properly positioned financing applications can in most cases these days be approved in a matter of a day or two. (Large complex deals take a bit more time). Additionally, investing a bit of time in understanding and negotiation lease terms can save you thousands of dollars in areas such as end of term obligations, down payments, structuring, etc.

Two! Can you remember that number – its only 2 choices you can make in the type of lease you are entering? Focus simply on ‘ owning ‘ the asset, or ‘ using ‘ the asset. It’s one or the other and we’re referring to Capital leases (own) or Operating Leases (use).

Dealing with the right lease company is half the battle when it comes to asset financing for your firm. Your key ‘ need to knows’ in this regards are issue such as:

Geographies they serve
Type of Assets they finance
Transaction limits – small, large, in between (The industry itself calls these small, mid and large ticket)
Do they finance technology? (Yes, software can be financed!)

If you want to eliminate the chores associated with financing your assets consider seeking and speaking to a trusted, credible and experienced Canadian business financing advisor who can help you navigate the asset financing challenge many firms face today.