Leasing

A lease is a contract between a lessor (owner) and lessee (user) to rent an asset, be it land, a building, or machinery, for a set period of time, with set payment terms. A typical lease period ranges from one year to as many as ten or 20 years.

Leasing allows your business to get the equipment you need without the high cost of ownership. With a lease, you can replace or upgrade equipment at the end of the lease term, using the capital you've saved to invest or expand. Additional leasing benefits include:

• Spreading taxes (both GST and PST) over the term of the lease
• Potential to expense your entire rental, resulting in tax advantages
• Fixed rental payments over the term of your leasing contract
• Simple application process

Almost anything you can buy, you can lease! Some equipment is preferred for leasing, such as manufacturing, processing, professional, government, and agricultural sectors.

There are several options at the end of your lease term:

• continuing to lease
• purchasing the equipment
• returning the equipment to the leasing company

Should you choose to purchase your leased equipment, the following options exist for the purchase price:

• price based on Fair Market Value (FMV)
• $1 Buy Out price, in which you pay $1 to purchase your leased equipment

The end of term options are decided by you, the lessee, and structured into the lease prior to execution.