Financing
Financing
We provide rapid financing for new equipment used for operational, commercial, and industrial purposes.
Our aim is to boost the growth of small and medium-sized businesses through our advantageous and tailored financing solutions.
Get Your Equipment Fast
We will review your application and make a quick decision regarding your lease. How fast? Generally, within 24 hours of finalizing your documents, we notify your equipment dealer that payment has been made. All that’s left for you is to await the delivery of your equipment.
Increased Purchasing Power
Leverage your purchasing power and free up cash by opting for periodic payments instead of an immediate lump-sum purchase. You can also add extra features or accessories to your equipment for a slight increase in payment. This is what we call purchasing power!
Manage Your Cash Flow
Small payments over the duration of your lease mean that your equipment will start earning you money while you pay for it, making it easy to balance your expense-to-income ratio.
Tax Benefits
In many cases, leasing provides tax benefits to the business by allowing them to expense lease payments instead of amortizing the capital cost of the equipment. Always consult your tax advisor to understand how leasing can improve your company’s tax situation.
Leasing vs. Loan
Leasing vs. Loan: The classic dilemma. Should you choose a lease or a loan for your commercial equipment?
The simplest answer is “it depends.”
Both options offer the benefits of financing (yes, leasing is a form of financing), but each decision comes with its own financial nuances that have different implications for your business finances. Use the comparison table below to understand the differences between the two and make an informed decision.
Lease | Loan | |
What is the impact of my payments on financing? | Lease payments act either as lease payments in an operating lease agreement or as repayments with interest in a finance lease agreement. | Your payments are repayments with interest that reduce the principal of your loan. |
Will I own the equipment? | The leasing company owns the equipment during the lease term, and you make equivalent lease payments. However, most leasing companies (including ours!) offer the option to purchase the equipment at the end of the lease. | |
Will I need to make a down payment? | No down payment is typically required. | Loans typically require a down payment. You will then finance the remaining cost of the equipment. |
How often will I need to make payments? | You can typically structure your payments to align with your cash flow, with options for monthly, seasonal, semi-annual, or annual payments. | Monthly payments are common, but depending on the flexibility of your financial institution, you may be able to structure payments to match your cash flow. |
Will I need to provide collateral? | A lease typically does not require collateral because the leased equipment serves as collateral. | Depending on your credit, you may need to provide other assets as collateral before obtaining financing. |
How will my equipment be depreciated, and what are the tax implications?
| *Before engaging in any transaction, always consult your own professional advisors in taxation, law, and accounting. | You are entitled to tax deductions for the interest paid on your loan, and since you own the equipment, you will depreciate it over its useful life. This means deducting annual depreciation based on the equipment’s depreciation deduction determined by the Canada Revenue Agency. |
What happens if my equipment becomes obsolete? | You can regularly upgrade your equipment at the end of your lease and structure new financing. Sometimes, it’s even possible to refinance an upgrade during your lease, protecting you from equipment obsolescence. | Since you assume full ownership with a loan, you keep the equipment and assume the risk of obsolescence. |
Does this impact my line of credit? | Leasing allows you to retain your line of credit for other opportunities. | You can increase your credit risk if you secure a loan with the institution where you have a line of credit. |
