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A lot of people are under the impression that a new business will not be able to get equipment leasing financing and so they either don’t try or ask around a few places and become convinced it isn’t going to happen so they give up.

If we were to ask you to name ten quick benefits of any type of business financing in Canada we quite frankly cant imaging you would name any other type of finance other then leasing. Just think about it.

Ten, yes ten solid reasons to consider a leasing company for your right choice of asset finance. Let’s recap them: technological obsolescence protection, accounting benefits, cash flow management, potential tax savings, the right to own or not own the asset at the end of the lease, convenience, ability to match the asset financing to its useful economic life, quick credit approval ( boy do we like that one!) and finally often a lower cost and cash outflow.

If you are the owner and you have extensive industry experience in the same industry or your partners do it might be possible to use your references from past work to demonstrate the business is being run by old hands even if the entity is new.

Canadian business financing got really challenging in the last couple years. Traditional financial institutions that funded equipment such as banks and insurance companies quite frankly simply stopped funding your business leasing needs. The leasing company you probably worked with also borrows, just in case you didn’t realize it. Somehow we all survived and as we head into 2011 the equipment financing industry is on a pretty good roll.

The solutions to cash flow financing in Canada are as follows: asset based lending, receivable financing, purchase order financing, and working capital term loans. All these solutions are either very suited to your firm or not applicable.

Don’t underestimate the impression you give either when presenting your business. A business may be new but if it starting out well capitalized, has good reference clients on board and employees and a solid business plan it can still find leasing capital to work with.

On the other hand, if you present yourself as a single individual trying to start something part time out of your garage with only a vague plan of what you are doing and no revenue or clients yet it is going to be much harder to convince anyone you will be able to make the payments.

Harris Smith runs the home equity line of credit website. Don’t Miss Out! Claiming that Debt Consolidation will not show on the credit report is another tactic used by non-genuine debt relief companies.

Apr072011

Tags: car leasing, commercial leasing, equipment leasing, leasing, leasing a car, leasing a vehicle, leasing agreement, leasing calculator, leasing car, leasing companies, leasing company, minibus leasing, short term leasing, Trucks, vehicle leasing

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