YOUR COMPANY IS LOOKING FOR LEASING FOR BUSINESS ASSETS!
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Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
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Easy. Leasing. What business owner or financial manager doesn't like easy, and when it comes to capital or operating lease assets that's exactly what is happening these days.
It couldn’t be any more basic; it’s you, your lessor, and the use or ownership of an asset. The majority of Canadian businesses prefer what's known as a capital lease, aka 'lease to own', The industry sometimes makes this a bit confusing as other terms for this transaction include 'financial lease', 'full payout lease' and 'finance lease'.
The bottom line, in that type of transaction you're simply signifying your choice of taking ownership at the end of the leasing term, of the asset or assets in question.
Why then do thousands of businesses in Canada, in fact almost 80%, so it would appear we're probably in the millions, choose the lease of assets as their Canadian business financing mechanism of choice?
When you think of it, it really comes down to 4 basic reasons. First of all, there is the necessity to acquire assets to run their business that they might otherwise not be able to purchase outright. Or perhaps they don't qualify for a bank term loan,
The other reason is termed 'risk-shifting' as your lessor shares the risk of ownership during the lease term.
Thirdly we have tax and accounting benefits that accrue to the Canadian business owner.
The fourth reason. IT'S EASY!!!!... and convenient.
Almost all asset classes can be financed in Canada, but a great example of 'Easy' when it comes to financing your business assets is computers, software and tech assets in general.
What business owner today wouldn’t be reluctant to lay out huge sums of cash when it comes to both cost as well as the constantly changing technologies of the tech world?
In fact that very subject, technology asset finance is why thousands of firms opt for the other type of lease available in Canada. That’s the ' OPERATING LEASE ‘and it’s simply a lease that can be renewed, extended, or upgraded during the lease term. That ability to make lower lease payments for only using and then returning the asset has a lot of appeal to chief information officer in medium-size or larger corporations.
Clearly there is an element of ' pride of ownership ' when it comes to fixed assets for your company. But it’s a changing world, and if you can achieve use and profits of the asset in an economical fashion it's clear that leasing is probably for you.
Various techniques can be used when it comes to figuring out the 'lease vs. buy' conundrum. Just make sure you use an apples to apples comparison tool, and that you understand your cost of capital and the real interest rate you are being offered.
So, ‘EASY’ when it comes to leasing assets. You bet. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital and operating leasing needs.
