Construction Manufacturing Equipment Financing - Options For New and Used Equipment

Construction Manufacturing Equipment Financing plays an enormous role in the Canadian economy. Companies and financial managers such as for example you want to ensure they have the best leasing and financing possibilities in their mind - It has continually shown that financing equipment via leasing is an extremely cost effective option.

Take a look at the site here of the many important features of this type of financing is the capability to match his term of the lease together with your expected use and residual value of the equipment. Generally equipment lease financing for used and new manufacturing equipment could be arranged for terms varying from 3 to 5 5 years.

No one knows better than the business owner what the useful expected equipment life of the asset will be, and we encourage clients to complement the word of the lease financing transaction with the economic life of the asset. The reality is needless to say that construction manufacturing assets have significantly longer useful expected values - (as compared with assets such as for example computers!)

We encourage clients to utilize a reliable, credible and experienced lease financing advisor. The benefit of such knowledge can help you save plenty of dollars using the overall rate, term and structure of one's lease transaction.

There are of course other financing options in terms of the acquisition of such assets - those options could include a government small company loan or perhaps a term loan from the bank. While these might have a lesser rate to the entire transaction they include a lot more stringent credit criteria - heavy emphasis is positioned on the total amount sheet and income statement of your firm. Leasing generally places a larger focus on the expected value of the asset during the term and at the end of the lease.

Many customers don't understand that some of the additional costs that relate to the acquisition of used and or new construction manufacturing equipment can even be financed - these include maintenance, installation, shipment, etc. That is clearly a huge cashflow and working capital benefit.

In certain cases your firm might already own such assets and you should consider leverage them by way of a sale leaseback for additional cash flow and working capital. That is clearly a very solid financing strategy that many firms have taken advantage of over the last year, as cashflow and working capital availability tightened significantly through the global credit crisis of 2008 and 2009. Owners simply adopted a technique of leveraging their equity in assets to remain liquid and competitive.

Many financial mangers simply view lease financing of such assets as a good cash flow strategy, you minimize payments and match them to the entire benefits of the equipment you are acquiring.

Seek a reliable advisor. Focus on which great things about lease financing are most significant to your firm. Structure and acquisition that makes sense form a cash flow, rate, and term structure based on the value of the asset as well as your current financial condition. That is solid business planning for growth.