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Business Financing

Commercial Financing: Understanding the Process (2024)

CBL Financial specializes in providing leasing & financing options for commercial equipment exclusively to businesses, facilitated through our network of approved vendors and dealers.

What does the commercial financing process look like?

  1. To begin the leasing process, start by securing an invoice or quote for the equipment you need, which can be sourced from a vendor of your choice. Whether the equipment is new, used, acquired through an auction, or purchased from a private seller, we can accommodate your needs. Certain conditions may apply for equipment bought from private sellers. For assistance in selecting a vendor, feel free to reach out to us for a list of our preferred vendors.
  2. Next, submit your application with CBL Financial through our online portal at apply.cblf.ca.
  3. Following approval, our team will contact you to complete the necessary lease documentation. CBL Financial will then coordinate payment directly with the vendor. Once the lease agreements are finalized, the vendor will arrange for the delivery or transfer of the equipment.
  4.  As the lessee, you will be responsible for making monthly payments to the assigned lender in accordance with the terms outlined in your lease agreement, while you benefit from the use of the equipment.

How long are the leasing periods?

Our lending partners provide a range of leasing and financing terms, including 24, 36, 48, 60, and 72 months. The specific terms your business qualifies for will be influenced by your credit profile and ultimately decided by the lender. We advocate on your behalf to secure the most favourable terms for your situation!

How does post-lease ownership work?

Typically, leases are structured in a manner akin to financing. At the end of the lease term, you have the option to purchase the equipment for $10, its fair market value (FMV), or 10% of the original value, depending on the lease agreement selected.

What are the benefits of leasing equipment?

  • Cash Flow Management: Leasing mitigates the need for a substantial upfront payment, thereby enhancing cash flow.
  • Tax Advantages: Lease payments can be expensed, offering tax benefits. Additionally, leasing does not impact debt-to-equity ratios as the equipment is not listed as an asset on the balance sheet, allowing for the tax burden to be distributed over the lease term.
  • Inflation Hedge: Leasing allows for the procurement of equipment with current dollars, with payments made using future, potentially inflated dollars.
  • Preservation of Credit Lines: Leasing does not affect other credit facilities, ensuring that lines of credit remain available for unforeseen opportunities or needs, reinforcing the principle that a business can never have too much liquidity.

What are the benefits of financing equipment?

  • Ownership: You own the equipment from the start, which can be considered an asset for your business.
  • Tax Benefits: You can benefit from tax deductions such as depreciation and interest expenses.
  • Equity Building: Payments contribute to building equity in the equipment, which can be used as collateral for future financing needs.
  • No Restrictions: There are no restrictions on the use of the equipment, and you can modify or sell it as needed.

How do I apply for an equipment lease?

To begin the leasing or financing process, please apply directly at our website at apply.cblf.ca, or contact us via email for a printable application or to address any inquiries about the process. Our team is committed to providing straightforward and efficient service to understand your unique financial needs and objectives.

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CBL Financial Inc.

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