SMTCL
Lease or Buy?
Which one is the best option?
In today’s economy it is important that you partner with an equipment supplier who not only manufactures and supplies quality products but can also offer you flexible finance options to meet your cash flow requirements.
In today’s economy, acquiring financing from the bank can prove to be much more difficult than it has in the past, often leading to a very long process and review. SMTCL Canada Inc., through its partner Capital Underwriters Corporation, can now provide lease financing at extremely competitive long term fixed rates.
Some of the advantages of our new lease program are as follows:
• Preserve working capital and lines of credit
• Not a bank loan and does not tie up your existing credit facility
• Preserve your working capital and credit for other expenses i.e. rent, wages, utilities and supplies
• Traditional bank lines are perfect for day-to-day business expenses but not for funding long term capital acquisitions. Leasing provides an alternate source of credit and financing that allows you to acquire what you need, when you need it without investing in depreciation
• Leasing will not weaken your borrowing power, because money has not been borrowed, leaving your existing credit line healthy and available for your company’s growth and unforeseen expenses
• If it appreciates BUY IT, if it depreciates LEASE IT.
• Maximize income and minimize taxes
• Lease payments are tax deductible and may help you reduce income taxes
• Monthly payments on operating lease terms are typically viewed as operating expenses, and are made from pre-tax rather than after-tax earnings, offering significant tax benefits
• Flexible terms and purchase options
• Structure your monthly payments to suit your cash flow needs
• Spreading your costs evenly over a lease term can help you stretch your budgeted dollars to acquire the quality and quantity of assets you really want, instead of the bare minimum required
• Maintain a healthy cash flow
• No payback period to wait until your equipment starts to earn positive cash flow
• 73% of our users surveyed said important reasons for financing included freeing up capital, shifting costs to expense budgets, and protecting against obsolescence.
• Fixed monthly payment
• Monthly payment never increases. Even if market rates rise during your term
• Fixed rate lease payments allow you to accurately predict equipment cost and cash needs, unlike the variable interest rates offered by many bank loan and credit line options
• Sales tax deferral
• Pay sales tax on the monthly payment and not cost of equipment, spreads out the tax over the entire term
Source: http://www.smtcl.ca/index.html
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