Keep your money in the bank.
Your taxes deferred.
Keep payments to a minimum.
The compelling advantages of leasing has led to high increases in demand for leased equipment in recent years. The value of assets leased to Canadian companies is excess of $32 billion, with a significant number of small and medium-sized enterprises looking to reap these benefits:
LEASING PAYMENTS MAY BE 100% TAX DEDUCTIBLE
A lease is considered a direct expense to your business. Revenue Canada allows leased equipment to be used as an operating lease with potential tax advantages up to the full amount of each payment.
LEASING CONSERVES CAPITAL
Leasing can ease the strain on working capital by providing 100% financing. When your capital is not held up in depreciating assets, you will have more money available to invest in profit-generating activities.
LEASING DEFERS TAXES
Lease taxes are payable with each instalment, so you only pay the applicable tax on a small portion of the asset’s value. Compare this to a purchase where the entire amount of sales taxes are due up front.
LEASING PROVIDES AN ALTERNATIVE CREDIT SOURCE
With a Polaris lease, you have secured financing outside of the existing lines of credit you have already established at the bank, leaving that source intact for other credit needs. For many small and medium-sized businesses this is essential to expanding business, as growth requires capital from every available source.
LEASING PROVIDES TOTAL FINANCING
Leasing offers 100% financing and allows for delivery and other costs not typically financed by a bank to be included in the cost of the lease. Unlike a bank loan, a Polaris lease typically requires no down payment.
LEASING PROTECTS AGAINST THE IMPACT OF INFLATION
You can acquire the equipment you need at today’s fixed prices and rates, and pay for it with tomorrow’s less-valuable dollars. When prices and rates pick up, you’re protected.
LEASING OVERCOMES BUDGET LIMITATIONS
Lease payments are typically lower than purchase instalments, making the most of your current budget. This allows you to acquire all the equipment needed to meet current needs, rather than being forced to make do with outdated or inferior equipment because of budget restriction.
LEASING OFFERS FLEXIBILITY
As your business grows or technology changes, additional or upgraded equipment will be required. With leasing, you can add or upgrade equipment at any point during the lease term.
PAY AS YOU EARN
Lease payments can be structured to fit your cash flow. Monthly, quarterly, semi-annual – which ever works best for your company. That way you pay as you earn.