Ontario equipment financing can be obtained from a number of our leasing partners located both in Ontario and other parts of Canada and the U.S.
Because of the large size of the Ontario market, and its close proximity to the U.S. market, there are lots of equipment financing companies providing loans and leases to area customers.
The diversity of the market also lends to a high degree of specialization where every loan and leasing company tries to provide a slightly different service offering in the market. This is great for the business owner in one way in that all levels of credit, industry, and asset type tend to have several different equipment financing options. On the other hand, it can be difficult to determine at times which Ontario equipment financing companies are going to be the most relevant to you at any point in time.
For instance, for business owners with a strong lending profile, it can be easy to secure an equipment financing commitment, but is it the best, or near the best deal available to you in the market?
For companies with weaker credit profiles, you can easily spend too much time trying to locate and secure equipment loans and leases that you will not be able to qualify for due to your business financing profile.
The best way to approach the Ontario equipment financing and equipment leasing market is through an experienced equipment leasing specialist. This provides a number of benefits to you including the following:
First, because leasing specialists are working in the market every day, they will have a better sense of where the market is at for any given point of time, what lenders are being more aggressive, and which ones are taking a more conservative approach. This inside information can be extremely valuable for zeroing in on the best equipment financing opportunities.
Second, many equipment leasing companies only access the market through broker networks, so if you’re not utilizing the services of an equipment financing specialist, you could be missing out on some of the stronger options available for your particular needs and requirements.
Third, a financing specialist will help you put together a solid application package and presentation that will increase the probability of equipment financing success through more clear and concise information exchange in terms the lenders or leasing companies want to see.
While the typical equipment leasing spectrum tends to cover off virtually any type of asset and almost any level of credit, in Canada, this full range of equipment lease choices is really limited to Ontario.
The size and diversity of the Ontario economy can support a large number of equipment financing companies due to the ability of each lender or lessor to become more specialized on certain asset groups, industry types, credit rates, and even regions within the provincial geography.
To this last point, businesses located in the outlying areas of northern or northwestern Ontario will not be afforded the same financing opportunities as those in the Greater Toronto Area (GTA), but in most cases, they will still have more options than many other parts of the country.
Ontario has a significant number of boutique equipment lenders that are relatively small in size in terms of dollars in their lending portfolios. But collectively, they provide tremendous coverage of all the different possible borrower profiles and equipment types.
And for many asset types, the competition can be significant, providing more choices and options for business owners and managers.
While the size and diversity of the provincial economy drives the overall equipment financing market, there are a few key aspects of a large economy that make it more appealing to lease companies.
First, industry diversity allows a finance company to specialize on the specific asset types in a given sector. This is important to better understand how to value used equipment offered as security and how to liquidate assets to cover off outstanding balances should the need arise.
Larger industries will have active resale markets. For leasing companies, this provides a market for not only disposing of assets on a timely basis, but also creating a secondary market for financing used equipment.
Second, large diverse economies are less impacted, on average, by economic shocks. While the current recessionary impacts are definitely felt in Ontario and across Canada, the Ontario market impacts are always going to be smaller for a number of reasons. 1st, recessionary forces shut down lenders as the money supply becomes constricted. If you’re located outside of Ontario and you lose a key lender that’s available to you, the impacts on your business can be significant if there’s no close alternative. 2nd, a diverse economy will absorb financial shocks better than one focused only on one or two industries.
Third, larger economies tend to offer more sources of capital to lenders. When economic pressures build up, one of the biggest challenges an equipment finance company can have is maintaining sources of capital for their leasing activities. If you’re a leasing company and only have one source of capital that gets impacted by recessionary forces, you can quickly be out of business. While this will also happen to Ontario based equipment leasing sources, it will likely happen less often, and when it does happen, there will be alternative equipment leasing companies ready to step in to gain market share.
The bottom line is that business owner in Ontario may have several equipment financing sources to choose from at any given time.
The key is focusing on relevant lenders that are the most suitable for the equipment you want to finance and the overall financing profile of your business. The best way to get the best results and avoid many of the more typical mistakes, is to work with an equipment financing specialist.