Why You Should Consider 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?
You relay on equipment and technology every day to operate and grow your business. But the value of those products comes from using them, not owning them. By leasing, you transfer the uncertainties and risks of equipment as a productive part of your business.
Leasing offers numerous advantages over other finanncing methods:
Retain Capital Strength
Leasing allows you to purchase the equipment and technology you need today while spreading your payments affordably across time. This allows you to reserve your capital for other day-to-day expenses. In addition, because a lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, thus making you more attractive to traditional lenders when you need them.
Leasing allows you to respond quickly as your need for equiment and technology arises. You can be approved for a lease within hours through minimal documentation and you can have the products you need in operation quickly, without hassles.
As your business grows and your needs change, you can add to or upgrade your lease at any point through add-on leases or master leases. If you anticipate growth, be sure to negotiate that option when you structure your lease program. You also have the option to include installation, maintenance and other services, if needed.
Leasing is an extremely attractive option for all your technology that becomes outdated quickly. With a lease, your risk of getting caught with obsolete technology is lower because you can build upgrades and add-ons into the lease.
Leasing allows you to structure a financing program that addresses your key business issues, including: cash flow, budget, transaction, and cyclical fluctuations. For example, some businesses request seasonal leases, which allow them to schedule their paytnents during their busiest months - allowing them to better align their expenses and revenues on a monthly basis.
You can deduct the lease payments from your corporate income. Consult your tax advisor about your specific situation.
A lease provides the use of equipment for specific periodws of time at fixed payments. It assumes and manages the risk of equipment ownership. At the end of the lease, the lessor may dispose of the equipment.
Leasing allows customers to conserve cash and 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 the customer does not make any down payment on the structure
No Pre-Payment of Taxes
The customer pays GST and PST on rentals, they do not prepay these taxes 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. Debt to Equity ratios are unaffected.
Pay as You Profit
Your customer establishes equipment costs in 2005 dollars, and they pay these costs incrementally in inflated future dollars, as the equipment is used. They can add extra equipment and accessories for very 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 uncomplicated and can be completed very quickly.
Repayment can be tailored to your customer's cash flow. Budgeting is simple.
Do you wish to Lease?
If you are interested in leasing, print out our Credit Application Form.
If you would like to know more about National Leasing, click here.