Best Asset Equipment Finance/Leasing lawyers in Canada as ranked by LexpertAsset equipment finance/leasing is that broad area of law, which deals with capital sourcing to buy assets, such as equipment and vehicles, either through financing or leasing contracts.
To assist clients, lawyers in this practice area cover a wide range of laws, such as:
These clients can either be those who are engaged in the business of asset equipment finance/leasing, or those who are looking for capitalization to acquire assets.
Please note that the Lexpert Directory has a separate section for:
Equipment financing is a loan to acquire business-related equipment whether to start a new business or to scale up the operations of an existing one.
It usually involves high-value equipment that small businesses don’t have capital for (yet). Industries where equipment financing is highly relevant are:
Any asset-based financing lawyer should be able to help you in each category, but it may be best to look through our list of lawyers below and read profiles on whether they specialize in an area you need help with.
An asset finance lease works where an asset directly owned or recently purchased by the lessor (e.g., a leasing company or a financial institution) is leased to a lessee (e.g., the business owner). It is another cheap method of acquiring asset for the business, where a large capital is stretched out in months or years, with the end of acquiring ownership of the asset after the termination of the period.
This contract is subject to periodic payments within a given term paid by the lessee, along with other conditions on the asset’s use.In some contract of asset finance lease, maintenance repairs and insurance of the asset may be the obligation of lessee since ownership is still with them during the lease agreement.
These details, along with other important terms in the lease contract, should be worked out with an asset equipment financing or leasing lawyer in advance.
Leasing and Financing are two different contracts which can be understood independently:
In both the contract of lease or financing, subject properties can be any equipment, which are fixed personal properties or assets used in the operation of a business. However, this does not include real properties.
Examples of business equipment financing or equipment leasing would be:
The best Asset Equipment Leasing and Finance lawyers can work on any or all these business needs.
New equipment is necessary in starting a business, or to expand an existing one. However, this may be difficult for those who are still low on capital.
For this purpose, business owners need to talk to the best equipment financing lawyers about the two options they have – Equipment Leasing and Equipment Financing.
Asset equipment finance/leasing lawyers can help you with your transactions. Whether you’re a creditor-lender or a debtor-borrower, and whether you would like to enter an equipment leasing or equipment financing.
Scroll down further to see our current list of the best asset equipment finance/leasing lawyers.
Equipment Leasing works as a lease contract wherein a leased equipment, which is a fixed asset, owned by the lessor is borrowed by a lessee to be paid in the manner agreed by both parties. Since payment is the center of this contract, this are negotiated by an asset equipment finance/leasing lawyer in most cases.
When a lessee fails to pay for the lease, the equipment is repossessed by the lessor, resulting in a rescission of the contract of lease. There are also other consequences as per the agreement or contract drawn up by the lawyers of both sides.
After the contract period, both parties may extend or extinguish the lease, or the equipment may be sold by the lessor to the lessee through a buyout or even to a third-party. The lawyers can draw this up in advance or work it out at the end of the contract.
However, other financial institutions may prefer a fixed contract period and fixed interest rates, or that both would be based upon the borrower’s or lessor’s credit profile or rating.
Equipment Financing is similar to a loan for the purpose of acquiring equipment for businesses. Like Equipment Leasing, payments are done periodically, which would include the capital and its interest.
The interest rate and the loan’s payment schedule would then depend on the terms and conditions agreed by both the lender and the borrower.
These interest rates may be subject to:
Security may be required by some financing institutions, and the equipment bought from the loan itself may be used as the collateral.
In some cases of equipment financing, personal guarantee or collateral on other equipment by the same business may also be required. Failure to pay on the agreement would result to the foreclosure of these assets or properties.
A lease differs from asset-based financing and its structure may be favourable or not to a business owner depending on the business’s current needs.
An asset-based lending lawyer will be able to better define which route is better for you; scroll down to see our list of the Canadian lawyers excelling in this area right now.
Because ownership is retained by the lessor in an asset equipment leasing, this would be good for a small business when acquiring an equipment or asset which could possibly become outdated in the future.
Since it might be possible that after the lease contract’s end — or just before it ends — there would be newer models of the leased equipment. Although it’s more costly, it’s more beneficial for the business in the long run.
At that time, there is also the possibility of the business becoming more liquid. As such, there is no need to go into a lease or a finance again to acquire more assets or equipment. However, if the asset or equipment is essential for the business on a long-term basis, an asset equipment financing would be more fitting.
This is because these types of equipment tend to be more expensive, and spreading the payment schedule in a span of years would be more feasible for a small business. An asset equipment finance/leasing lawyer for these agreements is often recommended, to see which type of agreement is best for the client.
In asset equipment leasing, ownership is retained by the lessor during the contract period. Generally, it cannot be transferred to the lessee after the lease, except if the parties would agree and depending on their contract.
This contrasts with an asset equipment financing, where ownership is already with the borrower at the start of the contract but is still subject to its terms and conditions.
Failure to fully pay the loan capital and interest reverts the ownership of the equipment or asset to the lender, either:
Do you want to hear legal advice or interested in procuring equipment either through asset equipment finance or asset equipment leasing? Scroll down below to hear from the best asset-based lending lawyers.
