Is 'Good Enough' Ok In Equipment Leasing When Structuring A Business Equipment Loan or Lease?



Is 'Good enough' acceptable to your firm when you are looking at equipment leasing and arranging a business equipment loan or lease in Canada. When it comes to benefits, we don't think so and we'll share some fundamental info and strategies that take your business financing to the next level.

You have arrived at the lease or buy decision base on your need for new fixed assets for your business. Financing those assets out of regular cash flow, or entering into cumbersome bank loan arrangements isn't an option.

The use of the asset over the long term should be what drives your financing decisions. Longer term assets require long term financing, and that's what equipment leasing is all about - matching the useful economic life of your asset to your cash flow and financing structure.

We encourage clients to take a hard look at lease term. Many lease firms that are focused on offering one type of term, or one type of lease (there are two types) are going to try to sway you towards their product or service offering.

We mean that you must separate the manufacturer and the price of the equipment from the financing. If you are dealing with a MFR that is also the financier of your asset make sure you maximize the benefits of that type of financing, known as 'captive financing' as its often the best available in terms of rate term, and structure.

The lease financing industry preaches '100%' financing for your business equipment lease and loan needs. The reality is though that often times a down payment of security deposit is required. Make sure that request is reasonable, and competitive, don't fall into our 'good enough' scenario of having to accept every term or down payment that is specified in your finance offer.

Structuring is what lease financing is all about. Be armed with a cash flow analysis that makes sense for the type of asset you are acquiring. Remember, if you don't ask or request financing business equipment a 'vanilla' or typical lease solution will be offered up - you don't have to accept that if your cash flow needs, business seasonality, or term of the lease are particular to how you want to benefit from lease financing.

The lessor offers you a 5 year lease based on your firms overall credit quality, and requests a 20% down payment. Did you know that in many cases you could get the same lease payment for a 3 year term, saving you two years in payments? That's by utilizing an operating lease and shortening the term.

In summary, every firm in Canada has unique financial needs, and you need lease financing payments, terms, and structures that work for you. Don't accept 'good enough' in business financing. Speak to a trusted, experienced and credible Canadian business financing advisor on how you can truly maximize financial benefits of a business equipment loan or lease.


Many lease firms that are focused on offering one type of term, or one type of lease (there are two types) are going to try to sway you towards their product or service offering. The lease financing industry preaches '100%' financing for your business equipment lease and loan needs. Remember, if you don't ask or request a 'vanilla' or typical lease solution will be offered up - you don't have to accept that if your cash flow needs, business seasonality, or term of the lease are particular to how you want to benefit from lease financing.

In summary, every firm in Canada has unique financial needs, and you need lease financing payments, terms, and structures that work for you. Speak to a trusted, credible and experienced Canadian business financing advisor on how you can truly maximize financial benefits of a business equipment loan or lease.

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