As we said, we promised to be ' your guy ‘... so here it goes. You can immediately go to the head of the class by showing that you are aware of a major choice you need to make when you start the lease vs. buy equipment decision. There are two types of leases, capital and operating. Think of them as basically owning or using, in that respective order.
Have you been read your rights? No, we're not arresting you... just letting you knows that as ' your guy ‘you have all sorts of rights when you entire into an operating lease. Payments are cancelable at end of term and you have no ownership or acquisition rights. However, the good news is that if you choose to, you have the rights to purchase the equipment; upgrade it and re finance, or return or extend the transaction. How is that for flexibility -- and you make those choices not the lessor.
Naturally when you opt to own equipment, as many assets to maintain their value (dont think computing in this case!) you now have a non cancelable commitment but payments are fixed and if you're smart you will match the term of the lease to the expected useful life of the equipment .
Don't forget also that we can divide the area of capital leasing into two subsets - a direct acquisition of an asset, or a sale leaseback on assets you already own. Sale leasebacks were somewhat out of vogue during the 2008 -2009 global recession, but they seem to be coming back, and as an alternative many of our clients have benefited from a simple short term bridge loan (i.e. not a lease) on certain unencumbered assets. At the end of the day it's purely a financial move on your part - generate working capital from assets you already own.
Again, we're ' your guy ' right. So we have an obligation to remind you of 6 other key benefits of lease equipment strategies in Canada. Working with commercial leasing companies on these strategies will save you thousands of dollars.
The strategies are: the freeing up of working capital in your operating lines. In business you want to match the right debt with the right assets, and lease finance perfectly handles long term asst financing. The other 5 benefits are 100% financing, no additional outside collateral requirements, tax write off of assets that normally might not be expensed, simplified record keeping and approval processes .
Does your small or medium-size business need a new phone system? Then you're in luck! Our new, updated comparison guide helps you cut through superfluous information and narrow down your list of solution providers. Get the latest data on phone system features, pricing, and performance metrics in an easy-to-use format. more
The holiday season is filled with frenzy and excitement for businesses and consumers alike. Consumers prepare gift lists, compare brands and prices, and begin shopping with a vigor that is not present most other times of the year. For many businesses, the holiday season accounts for a large profit bump at the end of each year, and companies strive to exceed their goals and keep customers happy during this rush late in the year. more
There are a lot of possible reasons you might want to switch to a new phone system. The old one might cost too much or be too troublesome to operate and maintain. It might not be flexible enough. It might not be reliable enough. Or it just might not have the kinds of features and capabilities that you need in today’s competitive business climate. more