Equipment Financing In Canada – 2010 – Optimism For Your Business Financing Prospects!

The lease equipment financing industry in Canada has a self governing body called the CFLA – Canadian Finance and Leasing Association. Its U.S. equivalent organization recently put out a report on business financing availability and optimism – Let’s look at some of the key highlights of the report and try and put some Canadian flavor to them!

The equipment lease financing industry in Canada finances hundreds of millions of dollars of equipment and capital expenditures every year, in the U.S. that number is of course in the Billions. The Canadian Finance and Leasing Industry is a major driver in the Canadian economy! Overall confidence is increasing in business owners minds around:

1. The decision to acquire and finance new capital expenditures/equipment

2. The ability to get that financing approved!

Confidence in business financing seems for the first time to be increasing slowly and steadily from the rock bottom lows the world experienced in 2008 at the time of many financial implosions.

Most business owners are feeling that business conditions overall is improving, only a small minority feels things are trending downward. However, close to half of the respondents in the U.S. survey (and we feel it’s the same here in Canada) feel that the overall business environment will generally be ‘the same’ for the next half year or so.

Those companies that do have a demand for lease financing and equipment loans to fund their growth in capital expenditures believe that leasing continues to be an attractive alternative to other forms of debt. 30% of the U.S. business owners felt that lease financing demands will in fact increase.

Many business owners, both in the U.S. and Canada are still concerned about overall access to capital – that thought transcends all businesses, small and large, as the ability to get working capital, bank, and term financing in the last year or so has become increasing difficult.

Canadian business owners are clearly more optimistic than they have been in the last year or so, but we would strongly believe that the overall Canadian economic environment can best be reported as ‘fair ‘.

Putting the business owner and the customer aside for a moment, the leasing and equipment financing industry it has its own transitions and challenges going on. The leasing industry in Canada has historically been dominated by a number of different types of entities that provide equipment and lease financing to Canadian business. Many lease companies have exited the market, some have re focused their businesses on only their core competencies, and all lease firms have had to in general raise rates and tighten credit conditions. The majority of the industry is financed via banks, life insurance firms, and securitization firms in Canada. The trickle down theory kicked in, and as these three lynch pins of financing in Canada had their own problems this of course affected the lease co’s.

We would appear to have a classic stand off in the works – banks and lease companies are waiting and looking and focusing on more profitable transactions, and small and medium sized firms are not yet 100% comfortable that financing and growth and profits are around the corner. Let’s stay optimistic that both sides can meet on comfortable territory!

Related articles

Adapting Your Business Plan in Changing Times: A Guide to Future-Proofing Your Strategy

We've all heard it, "change is the only constant." Yet, in the world of business, the pace and unpredictability of change can sometimes leave...

Investing in the Future: Business Ideas Focused on Kids and Teens

We've all heard the saying, "Kids are the future," right? Well, ain't that the truth! Investing in the future by focusing on business ideas...

Does your small business really need cyber insurance?

As a business owner or consultant, or freelancer, cyber insurance may seem like an unnecessary cost. But consider this... cyber-attacks have been occurring ever since...

Top Tips To Successfully Manage A Small Business

Top Tips To Successfully Manage A Small Business Small-scale businesses are the backbone of American economic activity, accounting for nearly half of all private sector...

A list of examples of business opportunities

Teaching Online teaching can be a great option for those with teaching experience and education backgrounds. You can either teach traditional business opportunities courses online...

Guidelines for Choosing a Business Opportunity

Guidelines for Choosing a Business Opportunity First, ensure that your business opportunity is compliant with all applicable business opportunity statutes. These laws vary from one...

These are the top 7 business card templates

Letterpress Are you looking to make a statement with simplicity? Do you like a simple business card template that will fit your personality? Letterpress business...

Here are the Top 7 Business Card Templates

Letterpress Do you want to make a bold statement and are looking for a business template that suits your style? A letterpress Business Card Templates...

Know the 5 Remarkable Advantages of an Internship

As a college graduate or someone looking to start a career in a particular field, internships are a great way to test a career...

Comments

Share article

Subscribe ⇘

1,000FansLike
1,000FollowersFollow
1,000FollowersFollow

Latest articles

Newsletter

Subscribe to stay updated.