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.
Choosing the perfect phone system for your business is no small task …. Depending on the size of your company, the industry in which you work, and the specific needs your phone system will be required to meet, any number of solutions could get the job done. more
A good SMB CRM system can be an incredibly valuable asset for your business. As more businesses recognize this value, the amount of SMB CRM vendors is expanding quickly. Navigating the pricing plans, features, and service terms of all these can be a decision-making nightmare. more
Reducing expenses is one of the main reasons that businesses switch from traditional office phone systems to VoIP technology. But many people rush this decision and end up spending more than they need to. The costs of implementing a new VoIP system can increase quickly, especially if you don’t strategically plan for it ahead of time. more