We look primarily at the type of equipment and track record of your business.
Leasing is more than econimics, though. It reduces the total cost of ownership. Executives have learned that the use of equipment, and not its ownership results in higher profit margins.
In most cases lease payments are considered a fully deductible business expense, accelerating the write-off versus capital cost allowances. The equipment does not appear on the company balance sheet, leaving debt to equity ratios unaffected. Before writing a cheque for your trailer, talk to your accountant, they often recommend leasing.
Eight out of ten Canadian companies lease all or some of their equipment, according to industry research. And this can help bolster your profit margin, too.
Defer paying the entire sum of sales tax – You finance only the acquisition cost of the equipment. If you upgrade your equipment prior to the end of the lease term you will pay no tax on the unused portion. It is quite simple: instead of paying a large HST amount up front, only pay HST (where applicable) on the lease payments.
Tailor the Lease Term to the Equipment Life Expectancy
Leasing is conducive to the fast pace of advances in equipment. Whether it is new or reconditioned equipment, we can tailor a term to fit your needs. Leasing can keep you at the leading edge of technology without depleting your capital budget or cash flow. You have the ability to upgrade your equipmnent as newer and better pieces come out by simply returning it at the end of a lease and initialize another lease with new, cutting edge gear.