Who is leasing for?
Leasing is for incorporations, general partnerships, cooperatives, non-profit organizations, small and medium-sized businesses, large enterprises, self-employed workers and professionals (lawyer, notary, etc.), and its main advantage is tax deductions.
What is the minimum amount for this type of financing?
The smallest amount eligible for lease financing is $2,000.
Can the purchase of used equipment be financed by leasing?
Yes, it is possible to finance used equipment by leasing.
Is it possible to refinance fully-paid equipment?
Yes, it is now possible to refinance your equipment. The type of equipment generally refinanced belongs to the transportation, construction, handling or industrial sectors, but we are open to other types of equipment (except restaurant equipment). The value used in these cases is the liquidation or break-up value.
Isn’t it cheaper to pay cash?
When you pay cash for your equipment, the disbursement represents a loss for your buying power. For example, if the return on your capital is 15%, you lose 15%. Leasing lets you keep your capital and still use the equipment. You pay for the equipment over time with the revenues generated by the initial capital.
Isn’t it better to own the equipment?
Profit results from the use of the equipment, not its ownership. It is generally more profitable to lease your equipment and put your capital to other uses. Depending on the type of lease you choose, you have the option to either buy the equipment at the end of your lease or exchange it for new equipment.
Are there closing costs or other administration fees related to leasing?
In general, there are no administrative costs related to leasing, not to mention that no deposit is requested upon signing. We work with you to determine what rental costs will respect your cash requirements.
For how many months must I lease the equipment?
That really depends on the type of equipment. The term of the lease should not exceed the equipment’s service life. Equipment that is subject to becoming obsolete, such as computer equipment, must be leased on a shorter term that furniture, for example.
What happens to the equipment at the end of the leasing term?
You decide. At the end of the lease, our programs give you the choice to buy back the equipment, for $10 or a fraction of the original cost, or else replace or return it.
What is a buy-back option at market value?
If you choose a leasing program with a buy-back option based on market value, then that means the buy-back price will be determined by market forces. A structured lease with residual market value will reduce monthly instalments, and let you enter the rental cost as an expense, thereby reducing income tax. The amount of this market value is the price that could be justified by a third party. Returning the equipment at the end of the lease remains an option.
Who pays the taxes?
The lessee is responsible for paying the taxes. The taxes are paid by you through your instalments and the lessor is responsible for transmitting the taxes to the Revenue Department.