Benefits of Leasing
BENEFITS OF LEASING YOUR EQUIPMENT
Lease financing is quickly becoming the preferred method for most businesses to acquire equipment and machinery. Read on to find out why:
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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. |
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. |
| 100% Financing
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”. |
Cost Justifiable
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. |
| Preserves Existing (and future) Credit Lines
Lease financing enables you to acquire the equipment you need, without tying up bank credit lines. For companies that require short term borrowing capabilities, lease financing can be a tremendous advantage. |
Self Financing
When you use 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. |
| Ease of Budgeting
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. |
Payment Convenience
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. |
| Product Flexibility
Lease financing enables you to respond to your growing needs by upgrading or replacing your equipment at any time during the lease. This could be a significant competitive advantage. |
Tax Advantages
Lease payments are tax-deductible, 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. |
| Other Investment Opportunities
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. |