Tax Advantages: Typically, leasing provides your business with income tax benefits by allowing you to treat the lease payments as an expense rather than depreciating the asset as a capital cost. A leased asset that depreciates in value can be written off more quickly when it is leased. Debt to Equity ratios are also unaffected as the asset does not appear on the balance sheet.
Easier Budgeting & Cash Flow: Leasing your equipment allows you to plan for your fixed monthly lease payments and enjoy the cash flow generated by using that equipment immediately. Your cost-income ratio is more likely balanced with a lease rather than a large up-front non-leased equipment purchase.
Preservation of Cash & Credit Lines: Leasing your equipment allows you to preserve your cash and lines of credit for their intended purpose: unexpected expenses or day-to-day business-growing needs.
Increased Buying Power: With the smaller periodic payments of a lease, you increase your operating or capital budget. When the total cost of your equipment is distributed over the lease term, your total equipment purchase does not have to be applied to your annual budget, leaving you more “wiggle room” and even allowing you to add extra features or accessories to your equipment for small increases in your lease payments.
Increased Production & Profit: Old, worn-out, outdated equipment can greatly diminish your ability to produce the needs of your clientele efficiently and profitably. Equipment leasing enables you to upgrade and expand the service your business can offer, allowing for greater profit.
For more detailed information on each of these advantages, see our blog post: 5 Advantages of Equipment Leasing.
“Working with Brenda and the staff at Lease 1 Financial Ltd. is a real pleasure. Every single transaction has been seamless and trouble-free. I never hesitate to pass my customers on to Lease 1 Financial Ltd. for equipment leases. It is just that simple.”
Mid-west Forklifts & Equipment Ltd.
“We have been dealing with Brenda at Lease 1 Financial Ltd. for 10+ years now. Brenda is very fast and efficient in dealing with our customers. It has been a pleasure working with Lease 1 Financial Ltd.!”
Stanley’s Sign & Screen Supply Ltd.
“Many thanks to Lease 1 Financial Ltd. for representing TESCO and negotiating a very positive closure to our shop tools lease. Essentially, Lease 1 Financial Ltd. saved TESCO $15,000.00!”
“Lease 1 Financial was able to provide Ditch Hitch with equipment leasing, gave us great personalized leasing advice and always went the extra mile to make it happen. I will not hesitate to recommend Lease 1 to other businesses looking for superior lease financing services.” Ditch Hitch