Real Benefits to Leasing

Buying new equipment outright can often be the best decision. However, there are circumstances whereby the benefits of leasing outweigh those of purchasing.

Benefits of Leasing Equipment

Aside from a reduced cash outlay, there are many benefits to leasing equipment:

  • Equipment leasing saves your working capital (bank lines) for day-to-day business expenses, business expansions, or unexpected business related expenses.
  • A lease provides you with a predictable monthly line item, which can help you budget more effectively. You can often structure your payments to meet your monthly, seasonal, semi-annual or even annual business cycles. You can then confidently develop long-term plans for your business.
  • Leasing can save you the time and hassle involved in finding someone who will extend you credit for purchasing equipment.
  • You can keep pace with emerging technology. If you want or need to stay on the leading edge of technology leasing may be a better alternative than buying the equipment and then trying to resell it when it no longer meets your needs.
  • Short-term leases give you the opportunity to evaluate whether the equipment fits your needs.
  • Maintenance may be included in the lease, saving you additional costs.
  • If you use the leased asset in your business, you may enjoy a potential tax advantage. Check with your tax advisor to find out how leasing can benefit the tax position of your business.
  • Lease payments are considered a business expense vs. long-term debt.

Low debt on your balance sheet helps you secure financing to fund your business.

NRSCO Finance Partners

We work primarily with two companies that offer financing options.

Econolease – www.econolease.com

If you decide you want to lease, we will put you in contact with Econolease. We never see a customer’s financials. We will forward our quote to the leasing company and then they will work directly with you to determine the terms of the lease. In most cases you put down first and last month payments, make the monthly payments for the term of the lease, then at the end of the term you either pay $10.00 or 10% and you own the equipment. Econoloease also offers the flexibility of a weekly rental program.

Silverchef – www.silverchef.ca

Silverchef offers weekly equipment rentals.  They also permit upgrades. For example, if you rent a 20-quart mixer for the minimum of one year and determine after 3 months that it is too small you can return it and get the 40-quart mixer that you need.  You can upgrade but not downgrade.

Buy or Lease

If your equipment requirements are relatively small and you have the money or can get a low-interest loan then buying may be the best alternative. However, if your equipment requirements represent a significant investment leasing may be a better option. Why commit a large amount of cash when you could use that money to further build your business?

At NRSCO we offer you the flexibility to make the buying decision that best suits your circumstances. Give us a call. We would be happy to answer any questions you may have.