For anyone who would like to consider leasing as a financing option, many of our customers have worked with a leasing company called Equilease.
Below is some info from their website.
The contact at Equilease is
Allen Abbott and his direct line is 416-499-6879 extension 223. They
also have online credit applications.
What Is Lease Financing?
The principal difference between lease and loan financing is that a funding company purchases the asset you require and then ‘leases’ the equipment to you on a monthly basis for a predetermined period of time.
When you want to pay low monthly fees, save money and also have some of
the following objectives in mind, lease financing is your best decision.
Control over your cash flows and working capital (important if the lease
is for your business)
-Spread the sales tax over the lease period (not paid all at once)
-Improve your financial ratios (important if the lease is for your business)
-Obtain the use of a piece of equipment for a short term contract
-Protection from equipment devaluation or obsolescence
-At the end of the lease period, you return the equipment to the funding
company unless Negotiated Options have been arranged.
When you call Equilease, a leasing professional will immediately begin working with you to ensure you get access to the equipment as soon as possible and can often approve a deal within 15 minutes while you are still in your store/office.
Minimum Lease amount is $1500.
Interest rate is usually around 10% but is dependent upon your credit rating.
Types of Leases:
Stretch Lease - The lowest monthly payments and maximum tax benefits are available with Stretch Lease financing. This program is especially attractive if you want to take advantage of lower payments and think you may want a purchase option in the middle of their lease term. For example, if you are approved for a lease over 24 months, Equilease can take the approved value and spread it – or stretch it over 27 months. This has a direct impact of lowering you monthly payments.
Residual Lease - An Equilease leasing professional can customize a Residual
Lease, so that you can purchase the equipment at a pre-set residual amount,
(which is usually $10 plus taxes) at the expiry of the lease. Periodic payments
are calculated based on the residual value, and the expectation that you
will want to own the equipment at the end of the lease. Monthly payments
are therefore often higher with a Residual Lease, which helps you have a
very low buy-out.
Some equipment that may qualify for a Residual Lease includes:
Computers
Software
Some Photography equipment
FMV (Fair Market Value) Lease - We recommend this deal if you want to use
the equipment over the expected life of the equipment and maximum flexibility
and options at the end of the lease term. FMV leases are offered for 2-5
year terms and provide an expiry option for Fair Market Value to be determined
at the end of the term. At the end of the lease you have the option to:
Return the equipment to the leasing company
Buy the equipment at fair market value
Continue leasing the equipment on a month-to-month basis
CUSTOMER BENEFITS OF LEASING
Equipment leasing can be a powerful financial tool that can help you quickly
and easily afford and pay for the equipment you want. If you are leasing
on behalf of a business – leasing can help you run and grow your business.
In almost every case, companies lease in order to add and / or upgrade
equipment. While new equipment can help companies increase revenues, leasing
can help you add additional benefit by helping you better manage your cash
flows resulting in the most effective operation possible. This can also
be true for the individual or family.
15 Minute Application Processing
Every customer is important – that is why we strive to approve deals
within 15 minutes - while you are still in the store / vendor’s office.
Financial Considerations
Leasing has a significant positive impact on cash flows and working capital.
Leasing equipment frees up your cash resources to be used for other purposes.
In addition, the lease term can be structured to cover the equipment’s
useful life. This is especially important if you are purchasing on behalf
of a business as you are able to tie the equipment’s earning potential
(your receivables), to its cost (your payables).
Accounting Advantages/Tax Benefits
If you are purchasing on behalf of a business and your business is growing
so quickly that it’s putting a strain on your cash flow, leasing
equipment through Equilease rather than purchasing equipment often makes
good business sense.
Equilease can introduce flexibility into your financial statements
Most leases will allow you to write off the full payment
The cost of the equipment will not appear on your balance sheet and therefore
will positively impact your balance sheet ratios (including capital tax
charge in certain cases)
Leasing will also spread your sales tax as the sales tax is charged on
lease payment and not all at once, as it is if you purchased the equipment.
Lease/Loan Calculator
Note: Equilease advises customers who would like detailed tax information
specific to their company’s operations to speak with their accountant
regarding the tax impact of leasing.
Leasing Offers Flexibility to businesses
With a variety of leasing options Equilease can prepare, and our ability
to approve deals within 15 minutes, you will be able to maintain your competitive
edge and not be left owning unused equipment at the end of a job or contract.
In addition to the best service, lowest interest rates and the quickest
approvals, which differentiate Equilease from our competition, you will
have the flexibility to control the turnover and cost of your equipment.
For example, you can respond to market upswings by:
Quickly acquiring new equipment when it is needed
Getting a lease approved in 15 minutes (banks often take days – or
weeks)
Upgrading equipment by returning it and trading up
Making small monthly payments rather than take a loan or have a huge
cash outlay.