Leasing gives you MORE PURCHASING POWER

Fact

Leasing gives you MORE PURCHASING POWER

How?

By purchasing equipment with cash or borrowed funds, sales tax must be paid up front. For example, if you have $100,000 available in cash or through a bank loan, you could only purchase approximately $88,495 worth of equipment, as the other $11,505 would go toward the payment of taxes (assuming GST/PST of 13%). With leasing, you could acquire the whole $100,000 worth of equipment … taxes are only paid on the monthly payments! Also, if you used a bank loan, generally the bank will insist on some equity (usually a minimum of 20% of the purchase price) into the transaction, in the form of a down payment.

Tags: capital assets, equipment machinery, lease contract, lease terms, Leasing, leasing company, purchasing power

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3. CONSERVE PRECIOUS WORKING CAPITAL.