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Page 8 MONEY MANAGEMENT 1990 Wednesday February Leasing business is growing and diversifying By WILLIAM B President Bruncor Leasing Inc Saint John NB Canadas leasing industry continued on a major roll through 1989 and there is every prospect of substantial growth in and beyond as well as for continued diver sification in the range of goods and equipment leased to Canadians Total receivables outstanding at yearend are estimated at 12 billion to 13 billion up from 11 billion in 1988 billion in 1987 and 78 billion in 1986 Participants are literally all over the map with probably around 100 companies in volved Its also an intensely competitive business and rela tively unregulated As a result at the lower end of the scale in terms of size a number of smaller leasing operations have tended to get in over their heads and fail This has been particularly evi dent where newer firms have not set up operating systems of sufficient capacity to handle in creasing volumes efficiently and as they have been hit by unexpected income tax liabilities So caution is al ways called for in contemplat ing any kind of lease More than half of the players in Canadian leasing are par ticipants in the financial ser vices industry or offshoots in cluding Canadian and foreign banks trust and insurance companies and their numerous subsidiaries and affiliates Together this group accounts for perhaps twothirds of all Canadian leasing business primarily because they have ready access to funds and branch structures in place Other groups are captive equipment manufacturing or distributing companies provid ing leasing as a service to users of their equipment inde pendent leasing operations owned privately or by corpora tions and lease transaction brokers Theres no question Canada has come a long way in a relatively short time and the principle is now established in all parts of the country and even in industries where it was not even a consideration until quite recently The range and variety of leased goods and equipment is staggering alarm systems automobiles asphalt spread ers and rollers backhoes cranes computers dishwash ing equipment educational equipment emergency sys tems fax machines furniture medical installations material handling equipment janitorial equipment mobile and cellular telephones office machines optical manufacturing shelv ing and warehouse equipment and transportation In fact chances are almost any item you can think of from an office chair to an airlines entire fleet of aircraft is leased somewhere Perhaps the most innovative leases and something of a specialty for provide aquaculture cages for salmon breeding Its a concept that simply wouldnt have been thought of until very recently Leasing a clear alternative The benefits are clear and most corporations and many individuals now view leasing as a viable alternative to other financing methods In the first place many leases can be financed per cent unlike most other methods In many cases too leasing can be benefi cial from a tax point of view It can often enable effective ex pansion of a customers line of credit and assist a companys cashflow situation Furthermore once accepted in principle many customers now actually prefer leasing to other financing methods for the acquisition of equipment Apart from anything else leas- example leasing companies ing business is now very much is a highly competitive tend to take for granted that we part of the Canadian financial business and we must be go to the customers office to scene and likely to become serviceoriented un- make the deal not vice versa important and like some other lenders for One way or another the leas- diversified in the future Deposit brokers will find best GIC or RRSP If youre like most smaller investors youre often confused by the huge range of term deposits GICs and RRSPs all competing for your dollar How often have you agonized long and hard to make a choice only to wonder afterwards if you overlooked a better deal Well there are people around to help you get the best rate evailable for the term you want and with an appropriate level safeguards to protect your investment These are the professional deposit brokers member of the Federation of Canadian Independent Deposit Brokers Inc and you can find them in almost all parts of Canada They act as agents for trust companies and some chartered banks and shop the market at least once a day to look for the best deals their service is free to you because the brokers are paid commissions by the financial institutions where they place your business The federation has strict standards of professional ethics and most of its members have longestablished clienteles so youre going to be in good hands But make sure youre dealing with a professional fulltime deposit broker with Lie proper credentials Remember there are some real phonies out there including baitandswitch artists who promise top rates to get you in the door only to switch your money into something much less attractive once youre hooked To find out more about the Federation of Canadian Inde pendent Deposit Brokers Inc and its members across Canada write Kenneth A Brown SecretaryTreasurer 18 Richmond Hill Ont HAD TIB AND REAP You work hard for your money and so do we Well examine every angle of your financial situation and show you how you can keep more of what you earn Comprehensive services for business estate and personal accounts including Tax Preparation Consultation Financial Planning Personal Business Statements New Business SetUps Tax time is just around the corner so give us a call today Goebelle Alexander Chartered Accountants WITH THREE LOCATIONS TO SERVE YOU GEORGETOWN BRAMPTON MISS1SSAUGA 37 Main St South 18 Regan 8775155 8405518 Rd 8266352