Capture 3 Benefits Of Lease Financing – With Canadian Finance And Leasing Companies

Updated: June 21, 2011

Reason #1 - Yes, there may be a down payment sometimes or a nominal security deposit but in general lease financing provides you with the ability to finance the entire asset. The asset is of course the ' hard cost ' of your acquisition, but many Canadian business owners and financial managers are pleased to know that there are numerous add ons let us call them, that can be , yes, ' added on' to the lease. They are items such as delivery, installation, warranty, training, service, etc.

Reason # 2- We hate to sound like economists here but the reality is that lease financing is a solid hedge against inflation. You in effect slow down the use of your funds, and at the same time can use cash flow and working capital you otherwise might have spent on the asset. That's just common sense right?


Reason # 3- Term. One of the smartest things you can do when working with finance and leasing companies is to match the term of the lease with your best business estimate on the useful life the of asset . You're matching cash outflows to the benefits you receive from the asset, bringing those two together as much as you possible can.

Naturally we all realize that some assets depreciate quickly, some less so, and in a few cases (aircraft as an example ... or very heavy production equipment) the deprecation and obsolescence aspect is less of a concern.

In Canada lease terms can theoretically go to ten years in some cases, however the real world out there tends to favor 3-5 year lease terms. Many clients often are looking for a shorter term for specific project or asset type reasons - The shortest term we tend to recommend is 24 months - anything less than that doesn't make real sense for the lessor, or yourself.

Featured Research
  • The Best Video Conferencing Solutions in 2017

    Thinking of investing in video conferencing but not sure now if it is the real deal or just a passing fad? 75% of managers think that video conferencing will ultimately supersede conference calls. Additionally, 89% of remote employees say that video helps them feel more connected to their colleagues. more

  • Better Together

    It is absolutely essential to the success of your business to employ excellent communicators AND provide them with the support that they need in order to be successful. When you pair your VoIP phone system with UC, you can create a seamless, centralized communication system that your teams can use to collaborate in any medium they choose. more

  • Contact Center Implementation Best Practices

    Are you looking to add a contact center for your business but not quite sure of how to go about implementing one? You aren't alone, in fact, getting a modern contact center up and running efficiently and effectively is much more difficult than it was even five to ten years ago. more

  • Business Meeting Showdown

    It is no secret that communication and collaboration are at the heart of success and longevity for any business. However, as businesses become more global and more employees work remotely, video conferencing is being increasingly used as an alternative to face-to-face interactions. There are pros to both business travel and video conferencing such as personal connection and ease of use. However, there are cons as well ranging from travel delays to being technologically reliant. more

  • Mobile Communication Showdown

    It's no secret that businesses are becoming agiler and employees are spending more time away from their desks. The question isn't should we get rid of our landlines, but how quickly can we replace them?However, staying connected with your colleagues, clients, and customers is absolutely essential for cultivating long-term, lucrative relationships that will help your company achieve success. more