Leasing Preserves Working Capital
- Leases can provide up to 100% financing and include associated soft costs. Installation, training, software and service contracts can be built into the facility.
- When equipment needs arise after capital budgets have been set, leasing provides the solution by permitting the equipment financing from the operating budget.
Leasing allows you to acquire necessary equipment without depleting important cash resources or credit lines. Cash or credit lines are left intact to support sales initiatives and day to day operating requirements.
Leasing offers additional Tax Alternatives
- In most instances lease payments are an operating expense and therefore 100% deductible whereas payments on Term Loans to finance asset purchases are not.
- PST & GST are applied to the monthly payment, not paid up front as with an outright purchase or Conditional Sales Contract.
Leasing permits increased flexibility and an opportunity to reduce taxes.
Leasing is Cost Effective
- Minimum up front outlay.
- Typically payments are monthly but can be structured to suit seasonal operations, and are generally lower than payments on a Term Loan.
- The net cost of leasing is usually equivalent to Term Financing rates offered at the Banks.
- Links the cost of the equipment to the new revenue generated.
We are committed to delivering fully competitive interest rates. In addition, through our consultative approach, we are able to offer financing with a repayment structure that is sensitive to the cash flow requirements of your business.
Leasing gives the Entrepreneur Additional Leverage
- During the life of your business, good relationships have been developed with your credit sources, however opportunities do arise that require fast decisions. When these opportunities do present themselves you may find financing is not available, or if it is, its accompanied with excessive fees and/or conditions.
Our people are professionals who have extensive experience in business and the Financial Services Industry and enjoy what they do. This gives us our critical difference. While we will not grant credit to a business that is over extended we are positioned to provide such companies sound advice, and stable businesses credit facilities over and above current arrangements.
If it appreciates… Buy it. If it depreciates… Lease it.