Many Canadian business owners and financial managers are under the impression that equipment leasing and financing solutions for their asset finance needs are more expensive than other forms of financing.

However, at the same time thousands of businesses everyday flock to the lease finance solution when they are acquiring equipment. How can a finance solution perceived as ‘ expensive ‘ be one of the most sought after business financing facilities day after day.

It’s because it’s all about the benefits and flexibility. In pure theory if you were paying full price cash or entering into a term loan you could make a technical financial case that lease financing is more expensive.

But it’s never always about price in your personal life, and that’s certainly the case in business. The reality is that the additional benefits of a lease often over weigh any concerns about cost or interest rates. And quite frankly with interest rates at all time lows in Canada companies with fairly decent credit profiles can get equipment financing in the 7-8% range. And, on top of that, if your company doesn’t have a pristine credit profile you still can get approved because Canadian equipment and leasing and financing professions are experts in asset finance, and a lot of emphasis is placed on your company prospects and the asset itself.

Accounting isn’t one of our favorite subjects when clients ask us for leasing assistance, but the reality is the when you use lease finance effectively – for example operating leases, then you are in a position to increase overall return on assets and your banker or other senior lender isn’t overly concerned about that always omnipresent debt to equity ratio he or she is talking about.

When clients talk to us about leasing we can talk about ten or 15 different issues – but to be honest they only often have one – can we get approval for a rate, term and structure that makes sense for our firm? That’s the essential question more often than not. And that’s more often when lease finance steps up to the bar! Lessors take, on balance greater credit risk than financial institutions, and in our words, they are more likely to ‘ buy into your story ‘ – whether that be a turnaround year, a new project coming up, etc.

Lease decisions from your point of view are often driven by the simple question – can the acquisition of this asset grow sales and profits. Asset finance firms understand that and they essentially become your business partner with the additional capital they put into your equipment financing needs. You on the other hand can use that additional cash flow and working capital for general operating purposes. You have matched long term debt – i.e. the lease, with long term capital – your lease finance strategy.

If you’re starting up a business, it can be hard to grasp the terminology you need in order to speak to your bank about funds; when it comes to discussing asset and sales finance, for instance, things can get tricky. It is, firstly, important to know what asset and sales finance is: a service through which banks help businesses obtain a range of equipment, including plant and machinery, commercial vehicles, IT equipment, office furniture and cars. Essentially, sales financing will help you get quick access to cash, while asset financing will help fund business equipment.

Many banks offer several cost-effective and expedient sales financing solutions; and with such solutions, businesses can find enough working capital to be able to operate. Two sales financing solutions are factoring and invoice discounting. With factoring (recourse and non-recourse),up to 95% of the value of approved invoices can be advanced within a given period of time with the balance being paid on receipt. And while invoice discounting (also recourse and non-recourse) functions in a similar way, there is a crucial difference between the two: in factoring, the client’s customers are made aware of the bank’s involvement with the business; in invoice discounting they are not.

Another method of sales financing used by many banks is stock finance; this allows you to release as much as 60% of the funds tied up in eligible stock through a completely flexible system. This will release finance that is usually not available for working capital needs.

Asset financing solutions will help you gain assets in an economical way, without eating into your cash reserves. As with sales financing, banks will often offer a range of asset finance solutions to its business customers. Hire Purchase, for example, can help you acquire the asset you need right away, but payments can be spread across the life of the asset in question. This may also allow you to keep the asset at the end of your term for a particular fee. Operating Lease asset finance will allow you to benefit from a particular asset, while the bank itself takes on the risk of losing its value; the rental and return conditions for the asset are fixed at the outset.

Many banks will offer a variety of asset finance products that cover the needs of a wide range of businesses, be they technological or agricultural. Barclays Asset and Sales Finance [http://www.business.barclays.co.uk/BRC1/jsp/brccontrol?site=bbb&task=channelFWgroup&value=7148], for instance, offer a Technology Lease asset finance product to help finance your technology needs, as well as an Agricultural Lease, which offers finance to buy machinery, vehicles and land, as well as many other benefits. So if you’re planning to start up a business, or you run an established business in need of asset and sales financing products, check out your bank’s asset and sales financing solutions to see what difference they can make.

Importing pertains to the process of bringing in goods or services from another country. They come from foreign countries and are usually brought in for resale. Many companies find this type of business quite attractive since the products or services from other countries are really affordable and they can be resold for a nice profit margin.

Although the process of importing and reselling goods seems like a simple concept, entrepreneurs who are considering starting this kind of business will have to overcome various hurdles. One of these is finding the right financing solution.

At present, there are various finance solutions or methods you can choose from. The most recommended one by finance experts are:

Factoring in accounts receivables.

Also known as asset-based loans, this method involves selling your credit accounts or accounts receivable to a bank, lending company, or other financing institution. Accounts receivables are usually sold at a discount, between 80-90% of the face value of your credit accounts. An advance payment will be given to you by the factoring company, about of 2-3%, for the accounts you would normally have to wait on for payment.

Purchase order financing.

This method has similarities with asset-based loans. The main difference with this financing solution is that you take your invoices or purchase orders and assign or sell them to a financing company. This company will then assume the risk and the task of billing and collecting. When the goods are produced, the financing company collects the payment from the customers, takes its cut of the proceeds, and pays you the profit. This option is highly recommended if your profit margin is high enough on the goods you are importing. Having a good and reliable supply chain and creditworthy customers are important factors to consider as well.

Inventory financing.

Although inventory financing is an expensive solution, it is still a highly effective way of financing an importing business. Under this method, you will have to use your present inventory to secure a loan that will permit you to buy the imported goods your customers want or need. Because of this, you can effectively increase your inventory without impacting your cash flow. However, with this option, it is crucial to make sure that you can service or repay your debt. Inventory financing comes in three types: blanket inventory lien, floor planning, and field warehousing. Choose the type that best meets your requirements.

If you are looking for tips to maintain your finance then opt for the best finance solution. It will give you advice regarding the finance and help you in the better way.

Many people face financial crises at some time in their lives, at that moment applying for a loan is the best way to finance your needs. These financial crises can be due to various reasons like improper budget management, the loss of job, overspending, long time illness in the family etc. Other time some people finance to meet the luxuries of the life. If borrower wants to meet his needs in an efficient manner then he must opt for finance solution.

Finance solution helps the borrower to consider important aspect while dealing with the loan like budgeting, credit counseling, debt consolidation, debt management etc. Borrower opting for finance solution must be relaxed as finance solution offers the best option for dealing with your needs; it helps not to be worse in any case.

The first step while opting for a loan is to maintain your realistic budget i.e. your net income from various sources and total expenses. This step helps the borrower to know his potential about for how much he can opt for.

After preparing your budget borrower can contact reputed credit counselors who have gained the experience in the same. Credit counselor helps you to give an advice as these counselors are based nonprofit motto and helps you to solve your financial need.

These credit counselors, advise the borrower on managing the money and debts at minimal cost. Credit counselor can be approached through the different source like banks, leading lenders, online lenders etc. After that borrower must check the quotes that are being offered by the lenders so that he opts for the best finance solution.

While opting for the finance solution, features of a loan is depended upon the borrowers’ credit history, down payment, amount to be offered, repayment option, etc. So, borrower must be outspoken to the lender while dealing with the finance solution

Nowadays, e-finance has received boost in the west. With the progress of the internet, almost every lender can have a website to deal with his borrower. Getting the finance solution from the online source is considered better than other sources as borrowers get wider choice in selecting the best lender.

Business loans and finance for a business just may have gotten good again? The pursuit of credit and funding of cash flow solutions for your business often seems like an eternal challenge, even in the best of times, let alone any industry or economic crisis. Let’s dig in.

Since the 2008 financial crisis there’s been a lot of change in finance options from lenders for corporate loans. Canadian business owners and financial managers have excess from everything from peer-to-peer company loans, varied alternative finance solutions, as well of course as the traditional financing offered by Canadian chartered banks.

Those online business loans referenced above are popular and arose out of the merchant cash advance programs in the United States. Loans are based on a percentage of your annual sales, typically in the 15-20% range. The loans are certainly expensive but are viewed as easy to obtain by many small businesses, including retailers who sell on a cash or credit card basis.

Depending on your firm’s circumstances and your ability to truly understand the different choices available to firms searching for SME COMMERCIAL FINANCE options. Those small to medium sized companies ( the definition of ‘ small business ‘ certainly varies as to what is small – often defined as businesses with less than 500 employees! )

How then do we create our road map for external financing techniques and solutions? A simpler way to look at it is to categorize these different financing options under:

Debt / Loans

Asset Based Financing

Alternative Hybrid type solutions

Many top experts maintain that the alternative financing solutions currently available to your firm, in fact are on par with Canadian chartered bank financing when it comes to a full spectrum of funding. The alternative lender is typically a private commercial finance company with a niche in one of the various asset finance areas

If there is one significant trend that’s ‘ sticking ‘it’s Asset Based Finance. The ability of firms to obtain funding via assets such as accounts receivable, inventory and fixed assets with no major emphasis on balance sheet structure and profits and cash flow ( those three elements drive bank financing approval in no small measure ) is the key to success in ABL ( Asset Based Lending ).

Factoring, aka ‘ Receivable Finance ‘ is the other huge driver in trade finance in Canada. In some cases, it’s the only way for firms to be able to sell and finance clients in other geographies/countries.

The rise of ‘ online finance ‘ also can’t be diminished. Whether it’s accessing ‘ crowdfunding’ or sourcing working capital term loans, the technological pace continues at what seems a feverish pace. One only has to read a business daily such as the Globe & Mail or Financial Post to understand the challenge of small business accessing business capital.

Business owners/financial mgrs often find their company at a ‘ turning point ‘ in their history – that time when financing is needed or opportunities and risks can’t be taken. While putting or getting new equity in the business is often impossible, the reality is that the majority of businesses with SME commercial finance needs aren’t, shall we say, ‘ suited’ to this type of funding and capital raising. Business loan interest rates vary with non-traditional financing but offer more flexibility and ease of access to capital.

We’re also the first to remind clients that they should not forget govt solutions in business capital. Two of the best programs are the GovernmentSmall Business Loan Canada (maximum availability = $ 1,000,000.00) as well as the SR&ED program which allows business owners to recapture R&D capital costs. Sred credits can also be financed once they are filed.

Those latter two finance alternatives are often very well suited to business start up loans. We should not forget that asset finance, often called ‘ ABL ‘ by those Bay Street guys, can even be used as a loan to buy a business.

If you’re looking to get the right balance of liquidity and risk coupled with the flexibility to grow your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you with your funding needs.