Leasing Basics

Leasing Basics

Why Lease?

An outright purchase, by cash or credit may seem fine, but it may cost you more in the long run. Finance only the useful life of the equipment, because it is the use, not the immediate ownership that is important.

Leasing is a rental expense and is not considered a long term liability. This “Off Balance Sheet” Financing improves your debt to equity ratio and borrowing capacity. Conversely, a loan is a long term liability, creating a negative/restrictive effect on your financial resources.

The Flexible Terms offered by Accurate Leasing allow you to balance the term with your payment needs. Match your revenue/expense stream by choosing monthly, quarterly, annually, seasonal, step-up/down, or irregular payments.

“Off Balance Sheet” Financing

Flexible Terms

Tax Advantages

Upgrades are Easy

Preserves Credit

Fixed Payments

Leasing can provide Tax Advantages. A lease, like your telephone, is an operating expense, therefore may be 100% expensible and does not require complicated C.C.A. (depreciation) schedules. This allows the equipment to be written off sooner, avoiding obsolescence, saving time and money. In comparison, a bank loan or paying cash only allows the interest and depreciation to be written off over a much longer period.
The Entire Cost of the Equipment Can be Financed on a lease. Get the equipment working for you immediately without having to arrange large down payments and receivables/inventory as security.

Upgrades are Easy because you can modify existing leased equipment, replace older equipment, or add new equipment anytime during the lease. Leasing keeps you more progressive and profitable because the equipment is always “State-of-the-art” and more productive. Obsolescence is avoided.

Defer Paying the GST and PST by paying these taxes only as you use the equipment. A larger bank loan to cover the taxes up front may cause you to compromise on equipment that is less than adequate. The increased loan further restricts your borrowing capacity.

Because a lease is not a loan, it Preserves Your Lines of Credit for more appropriate uses such as day to day operating expenses. Bank loans reduce your lines of credit, placing you at risk should unforeseen expenses arise or when economic slowdowns occur.

Lease Payments are Fixed for the entire term making budgeting and accounting more manageable. With a loan, variable rates fluctuate constantly, making it harder to forecast costs and offers no protection from rising interest rates.

You will be in good hands with Accurate Leasing, your trusted partner for Lease Financing. Together, we can help increase your opportunities in this growing marketplace.

Contact us at: Telephone 1 800 595-1477, Fax 1 800 595-3922

Email: contact@accurateleasing.com or credit@accurateleasing.com