Financial Solutions

Sale Leaseback Asset Finance : 7 Reasons To Consider The Leaseback Financing Solution

by

stanprokop

Sale Leaseback is an often overlooked form of business asset financing in Canada. How does this financing work, and, more importantly, what are the benefits. Let’s dig in.

Let’s explore those potential benefits around the ‘ lease back ‘ of business assets, including by the way, real estate.

1. Some leasebacks could bring significant balance sheet and tax advantages to your firm. Although probably the majority of transactions are structured as term loans or capital leases it is of course possible to structure a deal as an ‘ operating lease ‘ – allowing the monthly payments to become an immediate expense. Depreciation benefits may also come to bear.

2. The possibility to structure a lease back can really be undertaken at any given time. If there is not immediate financing need (there usually is though!) your company has the opportunity to do a transaction when market conditions on rates are optimal. Today’s current low rates are clearly an example of that

3. The concept of considering lease backs is sometimes just all about focusing on what your business does best. The pro’s call it ‘ core competency. As an example many Canadian chartered banks have sold off their prestigious bank towers on Bay St, utilizing capital in other parts of their business. Pride of ownership is sometimes, unfortunately, a thing of the past in today’s competitive environment.

4. Many transactions in this area focus on elimination of debt – this often improves borrowing ratios which more traditional lenders focus on and allow capital to be deployed in other areas relative to growth, more profits, etc

5. Employing assets via a leaseback will often improve your firms overall return on investment.

6. The unique nature of this type of financing allows you to still use the assets you need – i.e. equipment, real estate, etc – you just don’t own them.

7. In many cases the selling of an asset allows owners to take out equity in their business – More often than not, in the case of real estate the assets are in a separate legal entity anyway.

Although some might view this method of financing as ‘ alternative ‘ in nature in reality its as much ‘ traditional’ in nature. Final rate pricing and structure depend on the overall asset and credit quality.

So should you check out sale leaseback financing? If any, or several, or all of our 7 benefits can help your firm seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with you asset finance solutions.

Stan Prokop

Stan Prokop – founder of 7 Park Avenue Financial http://www.7parkavenuefinancial.comOriginating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years – has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. http://www.7parkavenuefinancial.com/sale-leaseback-lease-back-asset-finance.html

Article Source:

Sale Leaseback Asset Finance : 7 Reasons To Consider The Leaseback Financing Solution}

byAlma Abell

Modern central air conditioners are designed to keep you cool, filter air, and automatically maintain temperatures. They need to be expertly installed, maintained, and repaired by AC Contractors in Wichita. Professionals, such as Cook’s Heating and Air Conditioning also offer many benefits.

Professionals Help in EmergenciesProfessional AC Contractors in Wichita area provide 24/7 help. They are full-service HVAC experts, and will respond quickly when your air conditioner breaks down on a hot summer day or your heating system stops on a freezing night. They arrive quickly in well-stocked vans and are able to make many repairs on the spot.

Professionals Keep You HealthyOver time your home’s furniture, carpeting, and air vents collect pet hair, dust mites, mold, and more. The result can be indoor air pollution, which the EPA has identified as a serious health problem. HVAC experts can test home air and offer filters or vent cleaning options to help purify the air. Solutions can include whole-house dehumidifiers and electronic air filters. Contractors will also teach you about the types of filters your HVAC equipment uses and how often to change them.

Professionals Extend the Life of Air ConditionersA/C experts can often make repairs that extend the life of your equipment for years. They also offer service agreements that include spring and fall inspections and maintenance. During scheduled visits technicians clean components, replace refrigerant, and fix any problems that could cause breakdowns. They also inspect your insulation and let you know whether you need to replace it to increase energy efficiency and keep your home more comfortable.

Professionals Save You MoneyHVAC professionals keep your systems running well, which lowers utility bills and saves the cost of expensive emergency breakdowns. They can also explain the advantages of replacing older equipment with a new, energy-efficient system. Experts can supply every major brand and offer professional installation designed to maximize efficiency. They may offer money-saving discounts and will help you qualify for energy-tax credits and rebates.

Today’s HVAC systems must be installed, maintained, and repaired by experts. These professionals offer emergency services, keep indoor air healthy, extend the life of equipment, and professionally install money-saving new systems.