Save Your Money …

Save Your Money …

… leasing of your company’s equipment is more important now than it has been in the past. With competitors entering in every field of business as our economy grows, there is always a cheaper price out there. So it is more important for you as a business owner to preserve your capital to take advantage of bargains of materials when they come up as your newest competitor normally would not be able to as their cash flow will not allow them. What all this means is a bigger bottom line. All types of equipment right down to the rubber tree plants you put in your office, showroom or warehouse can be leased these days. Commercial leasing is really no different than if you were to go out and lease a new vehicle from your favourite auto dealership.

Now if you say, well I already have hundreds of thousands worth of equipment in my company and you are having cash flow problems then why not leverage these assets through an Asset Based Lending product or what is sometimes referred to as a Sales Leaseback. Basically what you do is allow one of our funding companies to purchase your existing equipment from you and lease it back to you over time. You should always check with your accountant prior to doing this type of financing as it may trigger some issues with Revenue Canada whereby you may have already depreciated a piece of equipment lower than it’s actual worth and may end up with a gain on disposal. Often times this is not usually the case.

We have seen ads for financing of furniture or cars based on O.A.C. … on approved credit. The creditworthiness of each person varies greatly and as financial brokers we work with each client to determine why their credit is the way that it is and try to work all the positives into each transaction. In commercial financing a lot of lenders like to look at the story as opposed to consumer financing these days it is more cut and dry. If you have a good Beacon Score you get the money but if it is one point below a particular benchmark then you don’t. As long as client who has had some past credit issues has been able to re-establish their credit and have a reasonable story as to why their credit is the way that it is then they have a good chance of getting approved for a commercial lease. For more information call Terry Reid at CapitalLinx International.