LEASE FINANCE Canada & USA
Equipment, Truck, Trailer, Tractor Etc.
Almost every business or trade professionals’ need tools, equipment & machinery to work with and it is not possible to own all at once the entire items needed for their efficient functioning. Leasing gives the flexibility to use such tools, machinery or equipment without owning right away and later-on there’s option to either return back, buy back at residual value or exchange with latest & new ones.
We have years of experience & knowledge in commercial lease financing activities and this has positioned us to obtain the required & suitable lease from many financing sources, with whom we have regular interaction. Whether you are starting out new or seasoned business person, we have many solutions and options for you to choose from. We are here to help every step of the way to earn your trust, repeat business and referrals.
The usual question comes up to one’s mind:
Is financing of equipments, tools, trucks or trailers better than leasing?
There’s no definitive answer to this; because of each business’s requirement is different from others. It all depends on the specific use and need of the business. After looking at the request we may be able to suggest which one could be better – financing or leasing.
Difference between financing and leasing:
The main difference can be said that, Leasing is `borrowing or renting’ for a certain period of time by paying a nominal monthly or regular installment payments allowing the ‘borrower’ to use the tool, equipment or truck for the specified of time allowed to use.
The Financing or Loan plan allows the equipment or truck to be fully owned after paying off in installments the cost due.
Benefits of leasing:
- Lease is much easier and flexible way to obtain equipments, trucks or trailers for business use
- Save from huge capital investment, which frees up more cash for other productive use
- Savings on taxes and interest payments
- With less or no down payment can get new or used quality tools, equipment or machinery
- Flexible lease options allows to use depreciable items and later either return or buy back
- Installment payments managed easily from the generation of business cash-flow
A lease can be set-up in many ways according to business’s cash-flow and expense outlay.
The following are some of the leasing options:
- $10 payout: At the end of lease, pay $10 and own the truck, tractor or equipment. It’s that simple !
- Fixed payout: At the end of lease term, pay the agreed residual lump sum of say 10% or 20% and avail the option to refinance the same or return back the item and can get out of the lease agreement.
- Fair Market Value: At the end of lease term, the leased item will be assessed and the lessee/client can own it by paying the market price. Alternatively, may have the option to refinance the same or return back without penalty.
- Seasonal Skips: When in off-season or slow period, the lessee may skip payments by having a pre-arranged agreement with the lesssor
- Interest Only Payments: Pay only the interest due for up to six months or so, by which time the leased equipment or tool expected to earn sufficient income to pay the regular installment amount.
- Variable payment: Pay a larger down payment amount at the start of the lease and arrange to pay lesser regular lease repayment amount.
Other lease options can be discussed according to requirement. Ask us and can be tailored to need.
Equipment, Trucks, Trailers or Tractors are huge part of many industries and business service activities and we are proud to be associated with them in assisting their funding need.
Some of main areas of use of Tools, Equipments, Trucks, Trailers or Tractors are: