Equipment Leasing : The best equipment financing option in Canada continues to
be equipment leasing as a great way to maximize cash flow and over all cost
effectiveness for new asset acquisitions. The other significant advantage of a
lease equipment strategy is the ability of this type of financing to gain
financing creativity based on the needs of your Canadian firm. In Canada
corporations of all size, including the government by the way, utilize leasing
as a financing option.Is there any asset that can't be financed? For years we
have half jokingly told clients that anything can be financed, and quite
frankly, based on your firms overall credit structure and quality, we believe
that
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true . Many business owners don't often realize that even 'intangible 'assets
can be financed, such as software, installation costs, maintenance contracts for
your financed asset, etc.The whole issue of equipment leasing for Canadian asset
acquisitions quite frankly revolves around the ' right ' lease, and , as
importantly, your leasing firm partnership . Properly structured leases create a
win / win scenario for all parties to the lease C namely the equipment vendor or
manufacturer, your firm, and of course the lease finance company.We are often
somewhat disappointed when clients are only focusing on 'rate ', because in a
large number of cases overall lease amount approval, structure of lease, and
type of lease chosen have significantly more importance that the 'rate '.
'What's my rate 'is not an effective way, we believe, to enter into a lease
negotiation. Naturally having said that, a rate must
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shoes 3 sale be commensurate with your overall credit quality C as credit
quality, combined with the asset collateral, drives the final rate decision.A
quick recap of the generic benefits of leasing should emphasize the advantages
of this type of asset acquisition financing. Those benefits are:- ability to
acquire equipment while minimizing your cash outflow for asset purchases - cash
flows match the benefits and useful life of the asset you are acquiring-
potential tax and balance sheet advantages - ability to upgrade equipment and
stay ahead of the competitive curve based on your ability to acquire items that
you might not necessarily be able to purchase on a cash basis Equipment leasing
often tends to also be 100% financing C that's a great way to maximize cash flow
, and , as we noted, many Canadian business owners and financial managers are
often surprised to know that lease financing can include tangibles,
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shoes sale as well as those maintenance and upgrade costs depending on the
asset you are financing C hint C ' think computers '!There are a number of tools
that allow you to evaluate lease financing options, one of which is a 'lease
calculator 'or' lease vs. buy calculator'. These are widely found on the
internet.We strongly recommend that you utilize the services of a lease
financing expert who has credibility and experience. That will translate into
your firm capitalizing on one of Canada's great alternative financing strategies
C 'Equipment Leasing '.
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