There are many reasons why leasing is a great financing option.
Listed below are just some of the benefits.
Leasing allows you to conserve cash and leverage up the buying power of your operating or capital budgets, thereby overcoming budget limitations. A $30,000 annual equipment budget is leveraged up considerably through leasing.
Unlike most traditional financing, in most cases you do not make any down payment on the structure.
No Pre-Payment of Taxes
You pay GST and PST on rentals. You DO NOT prepay the total taxes on the equipment in full up front.<
Preserve Lines of Credit
Valuable cash and lines of credit are preserved to grow your 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
You establish equipment costs in today's dollars, and pay these costs incrementally in inflated future dollars, as the equipment is used. You can add extra equipment and accessories for very small monthly costs.
Match Revenue with Expenditures
You 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. You 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 cash flow. Budgeting is simple.