Does Your Business Need To lease Finance New or Used Equipment?

Ontario equipment leasing is available for a wide range of equipment types and in a variety of different lease structures.

Both new and used equipment assets can be financed through equipment leases with the rates, terms, and conditions dependent on the age of the equipment, its condition, and the assessment of strength of the used equipment market.

For new businesses or start up’s, strong personal credit profiles are going to be required as well as significant personal net worth to cover off the risk of start up loss.

With well established businesses, the application requirements will increase with the amount of lease financing being applied for.  Consistent with this is the amount of time it takes to get a credit approval.  For instance, for most lease financing requests under $25,000, a lease approval can be granted in a matter of hours.  As the amount of financing increases, more information will be required which will require a greater level of review on behalf  of the equipment leasing company with the process taking anywhere from two to ten business days.

Get Ontario Equipment Leasing That Meets Your Business Needs

In many cases, the best equipment leasing options are going to come from manufacturers for both new and used equipment that are provided through the manufacturer’s approved dealers.

However, it can also be worth doing a comparison of other options due to the fact that even if implicit cost of financing is higher on an alternative, the purchase price for a cash purchase may be lower.

Equipment leases basically can be structured into an operating lease or a capital lease.  With a capital lease, you are obligated to purchase the asset for a nominal amount at the end of the lease term and with an operating lease you have the right to return the asset to the leasing company at the end of the lease term without an further repayment or purchasing obligations.

If you have an Ontario equipment leasing requirement, please give us a call so we can quickly go over you requirements and provide equipment leasing solutions that best meet your needs and get all your questions answered right away.

Call 289 816 0075 and Speak Directly To An Equipment Leasing Specialist

Or Click Here To Send Us An Email

Does Your Business Need a Hamilton Equipment Lease?

If you’re business is located in Hamilton, Ontario, Canada, we have a broad selection of Canadian and U.S. based leasing sources that would potentially be able to service your needs.

Hamilton equipment leasing is available for most types of new and used equipment used by Hamilton area companies.

Equipment leasing programs can provide both operating and capital lease financing solutions, depending on the requirements of the business.  For instance, if there needs to be a focus on some combination of cash flow conservation, taxation planning, and balance sheet management, then an operating lease may be something to consider.

If the intention of the buyer is to purchase the asset outright and repay the obligation on a fully amortized bases, then a capital lease with a nominal buy out amount may be the best option to consider.

Equipment leases can also be structured with larger balloon payments at the end to allow for near term cash requirements.

For new equipment, lease financing can be secured at or near 100% of the purchase price of the asset, further conserving on available cash.  Used asset acquisitions will typically require more money down and can also come with slightly higher rates and shorter repayment terms.

Get Hamilton Equipment Leasing That Meets Your Business Needs

Equipment leases are typically arranged in two to five business days with financing requests under $25,000 arranged in less than 24 hours most of the time.

If you have an accepted offer or bid in hand and need and equipment lease right away to close the deal, give us a call and we’ll help you get the application package put together and submitted right away.

For clients just starting the process of sourcing assets,  we suggest you consider applying for a pre-approval of the equipment financing you’re going to be needing in order to get the financing process out of the way and allow you to concentrate on getting the best deal while knowing what you have to work with and the repayment terms of the pre-approved capital.

Even if you have already purchased equipment for cash, we can arrange a sale and lease back up to 6 months after the purchase date and return all or most of  funds back into you cash flow.

Call 289 816 0075 and Speak Directly To An Equipment Leasing Specialist

Or Click Here To Send Us An Email

Does Your Toronto Business Need to Lease New Or Used Equipment?

Toronto Equipment leasing is provided by a large number of equipment leasing sources ranging from major banks to smaller independent equipment leasing companies.

Because of the sheer size of the Toronto market and the surrounding area, there are a wealth of equipment leasing options available for most types of new and used equipment.

In the current market, used equipment is demanding more of a down payment than new due to the lack of strength in the many segments of the resale market.  At the same time, solid rates and terms can still be secured on used equipment.

From a credit stand point, the full credit spectrum is covered for most types of equipment with lower levels of credit commanding a higher effective cost of borrowing and shorter repayment terms.

Leasing companies are also very much focused on deal size and risk profile in determining what slice of the overall market they want to service.

While having a lot of options is typically a good thing, it can also make it difficult to figure out what the best leasing options are at any one time and how to find them and secure them in a timely fashion.

This is where working with an experienced equipment leasing specialist can make all the difference in getting your equipment financed in the time you have to work with, within the parameters you desire.

Get Toronto Equipment Leasing That Meets Your Business Needs

So regardless of where you are in the buying or acquisition process, I suggest that you give us a call so we can quickly assess your requirements and provide relevant equipment leasing options for your immediate consideration.

There is no cost or obligation associated with our up front assessment service, and once completed, you’ll be one step closer to having your equipment leasing needs in place.

We’ll also make sure that we get all your questions answered as best we can so you’re in the best position to make the right equipment financing decision for your business.

Call 289 816 0075 and Speak Directly To An Equipment Leasing Specialist

Or Click Here To Send Us An Email

A Broker is someone who sources applications for lenders they are affiliated with and is your direct link into applying and securing financing from the lenders the broker represents.

An Equipment Financing Specialist is also a broker, but prequalifies your deal with you to determine only the RELEVANT lenders you should apply to “if any”.

That’s right, sometimes after a detailed review, a financing specialist will determine that you’re application as you have outlined it is unlikely to get financed  and will further outline what you need to do to increase the likelihood of getting financing.

They may even tell you they can’t help you and won’t waste your time submitting applications with very low probability of success in terms of the lenders they represent.

Believe me, this level of honesty is what you need to be looking for.  If a particular broker can’t help you, then they shouldn’t waste your time.  It doesn’t necessarily mean you can’t secure financing, but it does mean you’re going to have to look elsewhere for more RELEVANT sources of equipment financing.

An Equipment Leasing Specialist is a knowledgeable professional with enough business ethics to give you solid feedback regarding your application, good or bad, including the best way to proceed.  Many “brokers” on the other had will say just about anything to get your application submitted and get you somehow approved so they can get paid.  They work on volume and as such are more concerned about finding deals to submit than trying to get you equipment financing you will be satisfied with.

So as you can probably already tell, I strongly recommend using an equipment leasing specialist when seeking business financing.

Let’s get back to the “Pros and Cons” of using a third party resource to locate and secure equipment financing for your business.

From the Pro’s side, a third party brokering source has greater access to the market than you do as an individual due to the fact that many lenders will only source applications through their broker networks.  You may not be able to find a RELEVANT lender without going through a broker network.

Good Brokers (equipment financing specialists) are worth their weight in gold (well, almost) as they are in tune with the market and can direct you to more (here’s that word again) RELEVANT lenders than you would likely be able to identify yourself.

They will also be invaluable in helping you put together a solid application package and will proactively follow up with the lender clarify any unusual items and quickly answer any questions that may arise.

Even after getting an approval, good brokers will help you with the administration process that is required to actually complete the deal, which can be more difficult that you think if you aren’t going through this process every day.

Ok, but what about the Cons?

Well, we have already touched on some of them.  Many brokers are pure salesmen that are trying to push as many applications through their networks as possible.  There can be some real concerns with this type of practice.

First, as we have already talked about, the broker could be flooding your credit report with unnecessary inquiries and possibly crossing paths with other brokers you have also spoken with.

Second, equipment lease brokers tend to have volume targets with their lenders, so they could end up pushing you into a suboptimal deal just to get credit for lending volume with a lender that’s threatening to cut them off.

Many brokers do not perform sufficient prequalifying to properly understand your financing scenario so that it can be packaged and routed to RELEVANT LENDERS for optimal results.   Instead, the broker uses sales tactics to get you to apply as fast as possible, promising levels of performance and results that are unrealistic.  But to the business owner looking for financing, this can sound very appealing:  I don’t have to give you much information and I will get financed right away!

For very straight forward deals, this can indeed be the case.  But in many cases, you just end up with a bunch of declines due to lack of detail and explanation.  Not only did you just waste your time and get a number of unnecessary credit inquiries that will potentially lower your score and put doubt in the next lenders mind, but the lenders that declined you may have been able to give you financing if the process was more complete the first time around.

Too late now.

Once declined, its nearly impossible to go back to a lender with the same deal properly presented and get anywhere.

The qualifying process with an equipment financing specialist can take anywhere from 5 minutes to half an hour, depending on the complexity of the deal.  This is time well spent in the long run as I have seen it proven out time and again.

There may be some additional time spent packaging the deal, but if that’s the best approach, it’s worth the effort.

For straight forward deals, financing approvals can be secured within a few hours.  For more complex applications, it will likely take a few days.  Again, this is where an equipment leasing specialist can be the difference between success and failure.  Presenting your application properly and making sure the lender thoroughly understands the financing dynamics before making a decision cannot be underestimated.

Ok, so how do you select a financing specialist to work with?

That’s easy.

Take a look at the public information a broker makes available to you.

Do they focus on educating you on how they work and the process they will be following or are they full of sales lingo and hyped up promises that make the process sound too easy.

Is their approach based on education and support, or are they just in a hurry to get you any type of commitment that may earn them commission?

Do they require you to review your situation in detail before an application is submitted or are they ready to move forward on your behalf with partial information or an incomplete picture?

These are some of the more common things to watch out for.

Click Here To Speak Directly With An Equipment Leasing Specialist

Call 289 816 0075
 and Speak Directly To An Equipment Leasing Specialist

Or Click Here To Send Us An Email

Most equipment leases that are put into place for Canadian based businesses are capital leases.

A capital lease is based on the commitment of the lessee to purchase the equipment at the end of the lease period for a nominal, pre-established price. The opposite to the capital lease is the operating lease where the lessee does not have an obligation to purchase at the end of the lease term. There are several variations around these two lease structures, but the underlying equipment lease would either be capital or operating by for accounting and taxation purposes.

Because the lessor doesn’t have any asset disposal risk at the end of the leasing period, the capital lease options will have lower effective costs of financing as compared to an operating lease for the same basic financing request. The smaller the projected resale value for the asset, the higher the effective cost of financing.

Capital leasing programs act very similar to an equipment loan in that they provide an amortized payment over the term of financing and at the end of the lease the borrower or lessee will own the asset. Because of this similarity, the accounting process for capital leases is comparable to what is required with an equipment loan.

Probably the biggest difference between a capital lease and an equipment loan is the amount of leverage that is available to the business owner seeking financing. In many cases, a capital lease can effectively be for 100% financing and can include installation and delivery costs as well as the cost of the asset where the lessee only has to provide one or two installment payments in advance.

From a lessor point of view, there are many leasing companies that only have capital leasing programs as they are not set up or prepared to deal with the higher amount of equipment reselling activity required with operating leases. Operating leases are also more suited to certain types of assets than others, which also factors into the capital versus operating lease decision process.

The situations where operating leases are more common is where the business owner estimates that the higher cost of financing offsets the long term maintenance costs associated with owning the equipment after the lease term. Operating leases make sense for equipment that undergo heavy use and depreciate quickly as a result, which also leads to more frequent replacement. Because the equipment can be returned at the end of the operating lease, equipment gets replaced more frequently, reducing the chances of large maintenance and repair bills.

In order to determine which equipment leasing structure makes the most sense for your equipment acquisition and your business overall, you should consider working with an equipment leasing specialist to go over all your options and help you decide the best course of action to take.

Click Here To Speak Directly To An Equipment Financing Specialist.

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Call 289 816 0075
 and Speak Directly To An Equipment Leasing Specialist

Or Click Here To Send Us An Email