The Benefits of Leasing
The wise use of lease financing is the cornerstone of growth for most enterprises. Why should leasing be considered as a financing solution for acquiring equipment?
Leasing allows your customer to conserve cash, leverage up the buying power of their operating or capital budgets, and overcome budget limitations. A $30,000 annual equipment budget is leveraged up considerably through leasing.
100% financing is achieved. Unlike most traditional financing, in most cases they do not make any down payment on the equipment.
No Pre-Payment of Taxes
GST and PST is paid on rentals; not in full up front.
Preserve Lines of Credit
Valuable cash and lines of credit are preserved to grow their business. No one in business experiences financial difficulty because they have too much cash.
Potential Income Tax Benefits
In many instances, leasing provides income tax benefits, and the assets do not appear on the balance sheet. As well, debt to Equity ratios are unaffected.
Pay as You Profit
Establish equipment costs in current dollars, and pay these costs incrementally in inflated future dollars, as the equipment is used. They can add extra equipment and accessories for small monthly costs.
Match Revenue with Expenditures
Your customer can match revenues with expenditures by paying for the equipment while it is used to generate revenue, or protect profits.
Simple, Convenient Process
The process is simple and convenient. Your customers achieve ‘one-stop’ shopping for the equipment and financing. Credit approval and lease documentation is un-complicated and can be completed very quickly.
Repayment can be tailored to your customer’s cash flow. Budgeting is simple.