Leasing has become one of the most widely accepted commercial methods for financing equipment and machinery acquisitions. Eighty per cent of all businesses use leasing to acquire some or all of the machinery and equipment they require. Some common reasons include:
- Capital preservation
- Credit preservation
- Easier budgeting
- Financial efficiency
- Tax deferral
What types of assets can be leased?
Leasing can be used to acquire almost any type of equipment, machinery or other capital assets.
Who can lease?
Businesses of all types can lease including corporations, proprietorships, partnerships, government agencies, institutions, school boards, universities, non-profits, agencies and professionals.
Leasing helps you conserve valuable working capital, enabling you to use cash for other purposes. Cash tied up in fixed assets is no longer available to finance important profit generating areas such as research and development, inventory, production and marketing.
Leasing also helps you preserve your existing bank credit lines. All businesses have access to limited credit lines but must keep their operating lines, demand loans, etc. within their bank’s total exposure limit. By using the leasing program, business owners can open a brand new non-bank credit line (one that normally requires no down payments, and no outside collateral) while preserving their existing and future bank borrowing ability!