If you are thinking of financing that loader, or paying cash for that new printer, stop and consider the benefits of leasing those items instead.
If you sell heavy equipment, or software, or computer equipment, or ANYTHING that businesses use, consider the many benefits, and INCREASED SALES to be gained by leasing that equipment to your buyers instead of having them pay you cash, or use credit to make that purchase....
First of all, if you are SELLING a product to businesses, you can often up-sell them service contracts, setup and training, consulting services, much more easily if they don't have to pay up front out of their working capital for those added services. By leasing the product to them, and including those added services in the lease, they only pay the first and last month's lease payment up front and in most cases those lease payments are 100% deductible! This makes it A LOT easier to afford those added products and services you offer, saving them even more on their taxes! MUCH more in fact, than writing the same equipment off using the capital cost allowance.
ALSO, if they re-sell that equipment later, the lease payments written off are not clawed back but the capital cost allowance would be!
IT'S A WIN/WIN SITUATION!
If you would like more information on how you can lease equipment for your business, or how you can lease your product to your customers, call me, Barry Chisholm, in Greater Vancouver 604-961-2734 or in Canada toll free 1-888-465-0707, or visit my website at http://www.barrychisholm.ca/.
Other benefits of leasing:
- does not eat up your existing credit line; a lease is a contract, NOT A LOAN, so it does not count against your available credit, freeing up that credit to put into R&D, expansion, or investment elsewhere
- lease payments can often be structured to meet your budget, or your customer's budget
- payments can even be seasonal, so you only pay during the months you are actually making money with your seasonal business, farm, etc.
- sellers are paid immediately by the funding institution upon delivery to the buyer, and all collections and credit checks are done buy the funding institution, so once your buyer signs the lease, you don't have to do anything else but deliver your product, and you will be paid in full! This cuts down on collections and losses for non-payment or recovery of merchandise.
- as a Dominion Leasing representative I am also a sub-mortgage broker in residential and commercial mortgages so I can offer very uniquely structured deals to help you and your customers get the most out of their equity and assets, and help both your businesses. Again its a WIN/WIN...

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