Most business owners and financial managers in Canada prefer certainty when it comes to business financing. Equipment financing and leasing brings that predictability. Why is that? Simply because if you have chosen your asset properly (we'll leave that one up to you) and matched the asset with the right type of business equipment financing then you have just succeeded in closely matching the cost and cash outlays to the benefits you will receive from the asset - whether that be high end industrial equpment or the latest computer or telecom technology.
Again we come back to restrictions you face on acquiring those assets. And this time the evil doer is 'the budget'. In talking to clients about lease finance and their strategies they employ they are often stymied by the budget cycle. Again, this applies to every type of corporation, large and small, it's just that the big boys probably have a bit better handle on the planning and documentation around a budget.
But does budgeting have to restrict your success. We don't think so, and that's why equipment leasing comes to your rescue. When your company budget doesn't not allow for either the size of an asset or the timing of the acquisition to work the way you want it to then business equipment leasing should become the solution of choice.
Why? It doesn't get any simpler. You can acquire assets of a significantly higher size by focusing on monthly payment and not total expenditure, and there are tens of ways you can adjust payments to reflect beating that budget. Payments can be temporarily deferred, lowered in earlier term of the lease, and if you choose an operating lease then your asset doesn't even get impacted by the budget cycle. That's because the monthly lease payment is treated as an operating expense within your operating budget.