Basics for Leasing and Financing Information in Canada

Basics for Leasing and Financing Information in Canada

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.

Accurate Leasing is the true professional equipment for leasing and financing information in Canada. Need more information on leasing and its benefits? Contact us for more details.

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 our leasing company 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, it may be 100% expensive 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 equipment leasing, 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 upfront 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 constantly fluctuate, making it harder to forecast costs and offering no protection from rising interest rates.

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

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

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