Icône avec deux bulles de dialogue

Need advice?

450 525-4179

Leasing:

The Key to Customized, Scalable Financing!

Get Personalized Advice Today!

Free Consultation Form
une main qui donne une clé à une autre

What is Leasing?

Leasing is a financing method that enables a company to rent an asset (such as equipment, vehicles, or real estate) over a defined period, with the possibility of becoming the owner at the end of the contract by paying an option to purchase. This solution is often used to finance expensive equipment without having to tie up large amounts of capital.

The main features of leasing are:

  • Long-term rental: The company uses the asset while making regular rental payments over the term of the contract.
  • Purchase option: At the end of the contract, the company can choose to exercise the purchase option to acquire the asset by paying a pre-defined sum.
  • Tax advantages: Rental payments may be tax-deductible as operating expenses.
  • No capital investment: Consult with your accountant for specifics.
  • Access to modern equipment: The company can use modern equipment without having to buy it immediately.

This is a particularly attractive solution for companies that want to preserve their cash flow while accessing high-performance equipment.

Types of Leasing

  • Capital Lease: The term covers the useful life of the equipment. At the time of final payment, the lessee may extend the lease or purchase it for a predetermined amount.
  • Operating Lease (also known as Fair Market Value Lease): Similar to a lease, with a term normally limited to 75% of the equipment’s useful life. Upon final payment, the lessee can either transfer the equipment or purchase it at “fair market value.”
  • Terminal Lease Adjustment Clause (TRAC): At the end of the leasing contract, your company has the option of leasing the equipment again, selling it, or buying it for a predetermined amount.

Competitive Advantages

One of the greatest advantages of leasing is the low capital outlay involved in acquiring equipment. Leasing often requires little or no down payment, and there is no advance sales tax payment.

Obtaining a leasing contract usually involves a quick and simple credit application process.

When you’re looking to purchase equipment and wondering whether to lease or buy, consider the following facts about leasing:

Why Lease?

Leasing allows you to generate income from the use of equipment without the burden of ownership.

Key Benefits of Leasing:

As an alternative to traditional financing, leasing offers substantial benefits for businesses, including:

  • Financing up to 100% of the equipment value

    Other financing options may require a substantial down payment. Leasing often eliminates the need for a down payment.

  • Preserve working capital

    Lease payments can be matched to your cash flow, keeping your liquidity available for other critical needs.

  • Preserve bank operating lines

    Leases are often off-balance sheet, meaning they do not impact your leverage ratios and preserve your borrowing capacity.

  • No prepayment of taxes

    Sales taxes are included in your monthly rent payments.

  • Tax advantages

    Depending on the leasing contract structure, you may be able to deduct monthly rental costs as operating expenses, reducing the overall cost of the lease. Consult with your accountant for tailored advice.

  • Technological innovation

    Stay ahead with the latest technology. Leasing allows you to adjust the financing term to the equipment’s useful life, helping you keep up with technological advancements.

  • Affordable lease payments

    Leasing is a popular choice for many companies as it allows them to obtain necessary equipment while maintaining their operating budget.

  • Purchase or renewal options

    Leasing contracts offer the option to acquire equipment at a predetermined amount or fair market value after the term. You can also renew the lease for an additional term, often at reduced monthly payments.

  • Flexibility

    Leasing provides more flexibility than traditional financing. Payments can be adjusted to match your company’s cash flow. Options like seasonal payments and payment extensions are available.

Apare Services

Industries

We assist companies in the following sectors:

Construction

Icône d'un tracteur

Transportation

Icône d'une voiture et d'un camion

Excavation

Icône d'une grue de chantier

Agriculture

Icône d'un tracteur agricole

Forestry

Icône d'arbres forestiers

Industrial

Icône d'un robot

Office and Technology

Icône d'un bureau de travail avec un ordinateur et une lampe dessus

Dental and Medical

Icône d'une croix médicale

Supply Chain, Material Handling, Printing, Automotive Repair

Icône d'une tête robotisée dans laquelle quelqu'un change une pièce

Is your industry not on the list?

Chances are that we can help.

Contact us