Prefer not to take on debt for the equipment your business needs? Choose a lease and start benefiting straight away
Equipment leasing is similar to a loan, however, the lender is the owner of the equipment and the business pays lease (or rent) payments to the owner of the equipment over an agreed upon term. Leasing differs from a loan in that it does not appear on your company balance sheet and the lease payments are deductible expenses on the income statement.
Leases can provide much needed flexibility and can be structured depending on the cash flow cycle of your business.
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Why equipment leasing?
- • Tax benefits: For most lease programs, the business owner can write off the entire lease payment as a business expense, not just the interest paid. This means the entire amount paid for the equipment can be written off by deducting the monthly lease payments on the annual tax filing.
- • Stay efficient: Keep the business operating efficiently or meet increasing demand with the newest and most efficient tools.
- • Ease of application: Depending on the size of the equipment purchase; usually under $200,000 can be very quick and easy. Small ticket items are driven by the type and value of the equipment, as well as the credit quality of the business, usually resulting in a 24 to 48 hour application process.
Other benefits of equipment leasing
- • No down payment needed
- • Flexible terms to suit your needs
- • Won’t appear as a liability on your balance sheet
- • Lease payments are deductible expenses on your income statement
Types of assets suitable for leasing
- • Transportation
- • Construction
- • Manufacturing
- • Agricultural
- • And many others
How it works
- • Choose your equipment and agree a leasing period
- • Start using your equipment & begin making monthly repayments
- • Once the lease period ends you can either renew your lease, buy the equipment or end the lease and return the equipment.