Benfits of Leasing
BENEFITS OF LEASING YOUR EQUIPMENT
Lease financing is quickly becoming the preferred method for most businesses to acquire equipment and machinery.
| Ease of Acquisition
Once you have selected the appropriate product, the acquisition simply becomes a matter of affordable monthly or quarterly payments. No appointments and long meetings required. Be approved for your lease withing hours with little documentation. |
Term and Payment Flexibility No two businesses are alike; and leases can be structured to suit your unique requirements. This means that the term and frequency of payments can be customized to suit your own unique business cycle. This allows you to budget cash flow, transaction and cyclical fluctuations of your business. |
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Lease financing is 100% financing. This means that hardware, software and any extras that are needed to operate the equipment can be financed, enabling you to finance a “Total Solution”. |
It is very easy to determine the cost/benefits associated with leasing equipment. Simply divide the monthly or quarterly lease cost by the number of days the equipment will be in use. You will quickly see how the day-to-day advantages of using the equipment are related to the lease payment. |
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Lease financing enables you to acquire the equipment you need, without tying up bank credit lines or using your Cash Reserves. For companies that require short term borrowing capabilities, lease financing can be a tremendous advantage. Equipment Lease Financing is not considered long-term debt or a liablilty and as such, it does not appear as debt on your financial statements, making you much more attractive to your bank or traditional lender whe you really need them. Equipment Lease Financing is a fixed contract and is not callable like your bank credit lines are. |
Self Financing
When you use equipment lease financing as a method of equipment acquisition, you inevitably make your lease payments from the dollars generated by their business. In this sense, the equipment that is used to help generate revenues pays for itself. Expenses are matched to revenues. |
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Unlike bank financing, which is often subject to fluctuations in the interest rate, lease payments are “fixed” over the term of the lease. You can therefore manage your cash flow budgeting with ease and comfort. |
Keeping track of payment due dates is simplified when you take advantage of the “Pre-Authorized Payment Plan”. Not only does this direct-debit method cut down on your paperwork, it reduces the incidence of late payments and charges as well. |
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Equipment Lease Financing enables you to respond to your growing needs by upgrading or replacing your equipment at any time during the lease. This allows you to ugrade with changing times and avoid osolescence. This could be a significant competitive advantage. |
Equipment Lease payments are a tax-deductible operating expense, often up to 100% subject to Revenue Canada guidelines. This means that by leasing instead of arranging a loan or paying cash, you can reduce the amount of tax that you pay. Contact your accountant regarding your deductions and for further information |
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Profits are made from using equipment, not owning it. By leasing equipment instead of purchasing it, you can free up precious capital resources. This capital can then be utilized to build additional growth and profits by investing in inventory, marketing, operations, etc. |
We ensure that our clients are able to acquire the financing they need at the right time in a way that is most beneficial to them. |