| LEASING - WHAT'S IN IT
FOR YOU |
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A Lease Specialist
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Eight Good Reasons why Leasing might be better:
A Lease Conserves Capital
Leasing enables you to utilize your capital for optimum return.
While some operations require computers, bookkeeping systems
or new phone systems to ensure efficiency and competitiveness
others may need CNC operating machinery or other industrial
equipment. Acquisition of these pieces of equipment via leasing
preserves cash that can be used for raw materials, work in
progress, inventory, advertising as well as productive items,
or cash that may avert tremendous hardships if some unexpected
crisis should arise.
A Lease Protects Established
Lines Of Credit
Leasing provides 100% financing and avoids the necessity of
pledging existing assets such as inventory or receivables
for security. Leasing can in fact elevate or improve your
credit rating.
A Lease Provides Stability
A fixed term lease is not subject to cancellation or recall
like bank borrowings. Once a transaction is finalized, the
cost and the monthly cash requirements are fixed and not affected
by changing general rates. This is particularly meaningful
in times of fluctuating rates and potential instability.
Leasing Provides Alternative
Financing
Companies often experience cash restrictions and in such cases,
a lease provides the company with a means to deal with this
problem. It bypasses restrictive covenants while obtaining
needed equipment. A lease can be tailored to meet most budget
requirements and accommodate financial constraints.
A Lease Provides A Hedge Against
Inflation
A lease payment is a fixed payment. As inflation or interest
rates increase the lease payment is constant and stable. In
fact, if inflation persists you will actually be paying for
today's equipment with tomorrow's less valuable dollar.
A Lease Offers Tax Benefits
A lease payment is fully deductible as a business expense.
Often this will provide a faster write off than the capital
cost allowance via ownership. This will generally improve
your cash flow and results in leasing being less expensive
than ownership.
Leasing Facilitates Budgeting
Corporate, divisional or departmental budgets can easily be
determined, as can operating projections, when equipment or
operating costs are fixed. It is easier to handle and approve
small monthly costs than a large capital expenditure. Through
leasing you will have your equipment immediately without waiting
for budgeting delays or head office approvals.
A Lease Helps Manage Obsolescence
Advances in technology are being made so quickly that a machine
new today is obsolete in a few years. A lease program of planned
equipment replacement enables you to obtain maximum efficiency
from your equipment without the up front purchase costs. Profits
are generated using the equipment over the term of the lease.
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| Leases may cover equipment
from computers, welders or large CNC machines
for the metal and wood working industries to
ski hill equipment, fire hydrants and street
lighting systems.
Take a quick tour to
see some of the equipment types we have successfully
leased! |
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