Make that new or used equipment pay for itself!
If you work in grounds maintenance, you know just how critical good equipment is for a quality job. And you know just how expensive, and sometimes risky, purchasing that equipment can feel.
Sure, we all know business growth doesn’t happen without taking risks. But there are smart ways to minimize and decrease those risks. Like lease to own financing. Leasing provides an affordable alternative to bank loans and cash purchases. You can get the right equipment for the job without taking on massive debt or emptying your bank account.
There are solid reasons behind equipment leasing’s wide recognition in the industry. Six surprising reasons, in fact.
1. Finance Your New Equipment by Leveraging its Earning Potential
You need to have the right equipment in order to win contracts. But you need those contracts to afford the equipment. Sounds like a Catch-22, right?
Leasing offers a workaround. With a well-structured lease you can get that new machine working for your business with very little cash outlay. Meaning new equipment is often able to pay for itself right out of the gate.
2. Choose a Flexible Payment Plan
Grounds maintenance can often be seasonal, with different pieces of equipment required at different times of the year. Don’t get caught having to make payments on equipment you aren’t using. Structure those downtimes into your lease arrangement and maintain profitability in all seasons.
3. Minimize Upfront Costs
Your new purchase can often be completed with no down payment and without draining your working capital. Leasing allows for the greatest financial flexibility – while still ensuring you get the equipment your business needs to grow. Streamline the cost of your new equipment into manageable, monthly chunks.
4. Keep Your Equipment Up-to-Date
Technology and industry demand can change quickly. Leasing allows your business to stay current and take advantage of equipment advances as they hit the market – giving your company an edge over the competition. Lease trade-ups are quick and easy. This is also a benefit when equipment is no longer working well. Equipment that is no longer operating efficiently can mean real problems for your company’s bottom line and reputation. Trade-in and keep moving forward.
5. Benefit from Higher Overall Tax Savings and a Lower Debt Load
Lease payments are considered a business expense for tax purposes and can be used as a write-off on your income/corporate taxes. It’s important to be aware that a bank loan for equipment allows you to claim the interest paid on that loan as a tax write-off, but not the principle. If you lease the same piece of equipment, the full amount of your lease payment is tax deductible. Allowing you to claim your entire lease payment as a business expense.
Additionally, the sales tax is spread out over your lease term. This provides ongoing input tax credits (ITCs) for your GST, PST or HST filings.
6. Enjoy the Security of Fixed Rates
Leasing is usually structured with fixed rates. Your payments will remain consistent and predictable. Cash-flow and budgeting just got a whole lot easier.
Get Your New or Used Equipment Quickly, Affordably and with Minimal Paperwork
Yes, bank loans require a small mountain of paperwork and process your application at the speed of bureaucracy, but there is a better way.
Thomcat Leasing has been in the business for almost 30 years and we understand equipment. We’re committed to helping small and mid-size businesses succeed by offering better rates then the banks and a quick, easy approval process. Try our 60 second, no-obligation lease estimate. See for yourself how a great lease can save you money and time.
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