Business leasing and lease finance continue to play a main role in your overall equipment acquisition strategies. In Canada the equipment financing industry is very mature and developed, and as a business owner and financial manager you have a number of financing options. Most lessors are non bank entities and are much focused on certain types of assets and lease types that are offered.
Let’s examine how you can maximize your chances for approval for your asset finance acquisition. It is important to know how the other side thinks and behaves – That other side is your lessor. Your lessor is motivated in three ways, and if you know those motivations you can focus on maximizing the benefits in leasing and, of course, get approved.
We can safely say that the three motivators for any Business lease company are the tax and accounting benefits they derive from leasing you equipment, the interest rate they charge you on the transaction, and finally the asset re sale or disposition if the asset is structured as a return to a leasing company. Here you go: http://www.business-lease-deals.co.uk
Therefore it is important to focus on a firm that specializes in operating leases if you intend to approve the equipment – and getting to the core of our subject matter, your lease approval on an operating lease becomes much easier if you structure a financing that meets both your requirements and the lessors.
We can safely say the most critical element in getting your transaction approved is the overall credit quality that your firm portrays on your lease application and supplemental business info that might be required by the lessor. You should know that the smaller your equipment lease the less attention will be paid to overall credit and due diligence – that just makes sense. In Canada many leases under, say $ 50,000 as an example are credit scored via some basis info that the lessor acquires on your firm or the business owner. This data might be a commercial credit report, a credit report on the owners, and viewing some payment experience with some of your other suppliers. Small ticket leasing in Canada is very easy to acquire.
The larger challenge comes when you are acquiring assets over the 50k range. If your overall credit and financial position is weak you can well be expected to offer up items such as additional collateral, a down payment, or a guarantee buyback from the vendor.