Commercial and Industrial Equipment Leasing Solutions

Canadian business benefits from commercial leasing and industrial equipment leasing when it comes to asset acquisitions for growth and profits.

As a small or medium sized business owner in Canada you do not want to deplete your cash resources. We would point out that larger, even public corporations in Canada have that same pressure, because when they report to shareholders the focus of their investors and shareholders is often cash flow growth and preservation.

Business owners and financial managers in Canada look to lease financing as an alternative to taking on bank term debt. Canadian chartered banks do not provide lease financing; they structure your asset acquisitions as loans which supplement your existing borrowing arrangements with the bank.

Quite often, as with any asset acquisition, its all about the monthly payment and more often than not you will find that the lease financing solution provides you with the lowest monthly payment, and in many cases you can arrange that payment to reflect your actual working capital situation – i.e. seasonal payments, skip payments, quarterly payments (if desired) etc. That is true flexibility.

Most lease financing solutions in Canada are at a fixed rate, but in some cases variable rates are also offered.

When clients ask us what are some of the major challenges or pitfalls of equipment leasing and financing we advise them that questions can be answered in a very simple manner – business owners need to focus on which benefits of lease equipment financing appeal to them and then work with a partner who can deliver optimal rates, terms and structures based on your firms overall credit quality.

The challenge for Canadian business is working through the plethora of hundreds of equipment finance firms, many of which may not be suited to your type of asset acquisition and your firms overall credit quality. In Canada rates on equipment leases depend on the size the of the asset, the financial strength of the leasing company (they borrow money too!) and the overall credit quality of your firm. Leasing when it comes to pure interest rate focuses on your ability to generate future cash flows to make the monthly payment.

Thousands of leases are written every year in Canada for commercial, industrial and construction equipment when the historical cash flow of a customer does not necessarily reflect the future ability to pay. In that case the lease becomes what is known as ‘structured ‘, which simply means that a down payment might be required, the term of the lease might be shortened, and in some cases some additional collateral might be required Lease firms are in business to write leases, so usually every effort is made to complete a transaction that makes sense for all parties.

We advise customers to work with a credible, experience and trusted advisor in this area who can help your firm navigate the occasionally complex world of equipment financing in Canada. When you are successful you will have benefited from one of the great financing strategies of Canadian business – improved cash flow, prompt approvals, flexible payments and potential tax and accounting benefits. Those are great reasons to lease finance your assets.

Commercial Lights and RLM Lights to Spotlight Business

The commercial industry focuses on spending more on its advertisements and marketing. For larger companies, they invest on billboards, TV commercials, and newspaper ads. Not all companies have the budget to get on with those though, so a simple signage for the store a block away or some neon lights at night usually makes up for it. Then come to think of it, how are those signs going to be seen at night. It’s not like they can just put a bulb over the signage. Proper sign lighting is designed to make those signs enticing and attract attention.

The investment put up for sign lighting is as much as putting up the sign in the first place. There are different types and styles in putting up signs whether to make a restaurant entrance attractive or billboards to look well-designed.

Architectural lighting is simply the art of lighting structures such as signage, billboards, or monuments. There are many factors to consider before a lighting design can actually be completed. Some of the factors are the quantity of light required, energy efficiency, and cost.

Proper lighting of signage for establishments makes them easy for customers to locate. The lighting designer is the one that calculates the appropriate amount of light to be applied to a certain structure or sign to make it stand out. The light should not be too much and not too little and has to blend with the structure and building aesthetics. These sign lights provide just the right amount of light to emphasize the sign and make the establishment attractive.

Decorative lighting fixtures make the design more elegant that blends with the building aesthetics. These fixtures also make it easy for designers to manipulate and project light that would be enough to illuminate the lettering and color on the sign in entirety. RLM lights are one of the most commonly used in commercial lighting. Sign lights vary in size, design, lamp type, and lamp wattage.

Gooseneck lights are commonly used for lighting painted signs, which give great commercial lighting effects. This is the widely used fixture in the lighting industry. They can work with any bulb and are sure to make the sign more elegant looking and enticing. These design fixtures comes in different types, designs and color that would fit any need for proper lighting. Moreover, it would allow precise distribution of lights as not make the sign too bright or too dim. Having the most appropriate lamp type with the best promising fixture would definitely do the job.

Learning to Grow Your Wealth With Commercial and Industrial Property

Growing wealth with commercial and industrial properties can be achieved if one takes the time to learn the steps of being a good investor. Being prepared to perform the due diligence that a good investor always uses when analyzing commercial and industrial investments is critical to successful commercial real estate investing. Since knowing what you are buying is essential, you must concentrate on developing your evaluation skills. However, once you know what you want to buy, that’s just the beginning of the process. You must learn how to add value to the property through further development and be sure that you understand the financing end, as well as how to work with regional and local authorities to get the necessary permits for property improvements.

Common Misconceptions
Most people mistakenly perceive commercial real estate as the hardest arena in which to do business. However, you’ll be pleasantly surprised to know that the commercial arena:

• Is the easiest to structure great deals
• Allows you to complete deals and structure them with seller financing, faster and easier than most residential deals
• Is often easier to obtain commercial property financing, because transactions produce cash flow

Banks look at commercial financing as an entirely different financial world. They expect to see a profit and loss and a financial or income statement on the property. Although they look to the investor for some degree of creditworthiness, they also look more keenly at the deal and at the property itself, which greatly facilitates your ability to obtain financing. With commercial property, many of these leases are two, three, and five years, instead of one year- which is common in residential housing leases- and when you own or control commercial property with solid long-term tenant leases in place you are a prime candidate for securing great financing or refinance options.

Commercial and Industrial Property – Overview

You will should explore several major types of commercial properties:

• Retail
• Industrial
• Office

In residential real estate investing, you can create income through house and apartment rentals, there’s no doubting that. However, commercial rentals are considered better investments than residential properties. You can build financial independence in the real estate commercial investing world, and with less properties and dealing with a better class of tenant.

Although you can create income through rentals, you build wealth through the appreciating factor just by owning real estate that increases in value organically over time or through forced appreciation with income and/or property improvements. Appreciation can happen in a number of other ways, too, such as tax benefits and write-offs.

You’ll also need to educate yourself about real estate investment issues such as:

• Financing properties
• Real estate cycles and
• “Hidden Market”

It’s our opinion that you can make more money in the “Hidden Market” of the commercial arena, than in any other market. “Hidden Market” properties are properties that may be for sale but are not listed.

So, it’s exciting to start to learn that commercial investing is actually, in many ways, easier than residential investing.

In 1989, Stew Spence became a full time real estate investor, and has bought, sold or been on the business end of hundreds of r.e. transactions, both large and small, numerous diverse types of transactions totaling over $40,000,000 including commercial, mobile home park, multi-family, condo conversions and land development projects with a specialty in foreclosed properties needing rehabilitative construction. Now semi-retired, Stew is still an active investor and has trained thousands to succeed with real estate. Today, he is also retained as a Board of Advisors member with HIS Real Estate Network, residential and commercial real estate buying group.