The Value of Business Leasing
Lower upfront costs is just one of many reasons that business owners love leasing. Whether you're a growing start-up or established enterprise, we're confident that you'll find incredible value in our flexible leasing options.
Here are some of the main benefits of leasing:
One of the main benefits of leasing is that payments are typically lower than purchase instalments, which allows you to acquire the equipment you really need rather than settle for outdated or inferior equipment due to budget restrictions.
Use Your Capital More Effectively
Most Castle leases require 0% down payment, helping you conserve capital right from the start. On top of that, leasing effectively provides 100% financing, which allows you to keep capital free to invest in profit-generating activities.
Ensure Equipment is Cutting Edge
While technology and machinery can become quickly obsolete or out of date, leasing gives you the flexibility to upgrade equipment on the fly or renew technology on a set time schedule to ensure you have the best tools possible at your disposal.
Simplify Your Accounting
When you choose leasing, you can eliminate inflation as a cost variable and forget about depreciation scheduling. Leasing ensures consistent equipment costs, simplifying your forecasting and accounting.
Achieve Substantial Tax Savings
In the majority of cases, monthly lease payments are deducted as an operating expense which makes them 100% tax deductible. Also, taxes on lease payments are payable in small chunks with each instalment, versus a traditional purchase where the entire sales tax amount is due up front.
Keep Existing Lines of Credit Free
Through a Castle lease we will help you secure financing outside of your existing lines of credit, leaving that financing source intact for other credit needs. This will allow you to invest more into the other areas of your business.
When You Should Lease
At Castle Leasing, we lease an incredibly wide range of items – anything and everything that offers value to our clients. And while there are always exceptions to the rule, we often recommend following the "Leasing Rule of Thumb" when choosing what to lease and what to buy:
If it is a cost to your business and it appreciates in value, buy it.
If it is a cost to your business and it depreciates in value, lease it.
With so many compelling advantages to leasing, it should come as no surprise that Canadian companies currently lease assets in excess of $32 billion. As machinery, technology and other business tools change and evolve, we have seen businesses of all shapes and sizes turn to leasing to reduce costs and long-term depreciation.
If you need assistance in determining the benefit of leasing a specific item, contact us today and we would be happy to help.
What We Lease
Any business input that can be accounted for as a depreciating cost can be leased. Examples of items that our customers lease are:
- Property Leasehold Improvements
- Medical Equipment
- Business Signage
- Software and Professional Services
- Computer and Network Equipment
- Office Furniture
- Print/Fax Equipment
- Phone Systems
- GPS Systems
- Grain Augers
- Grain Dryers and Vacuums
- Fertilizer Sprayers
- Forklifts/Scissor Lifts
- Metal Lathes
- Packing/Strapping Equipment
- Pallet Wrappers
- Woodworking and Metalworking Machinery
- Automotive Equipment incl. Tire Changers, Alignment Equipment and Hoists
- Automotive Paint Spray Booths
- Welding Equipment
- Enclosed Cargo Trailers
- Equipment Trailer
- Goose Neck Trailers
- Stock Trailers
Types of Leases
New equipment or new leasehold improvement that is being added to your business.
Previously used equipment that is being acquired by the business owner for their existing business.
Sale and Lease Back
Any equipment or leasehold improvement that a business owner has already paid for, and would like to convert into a commercial business lease.
Leasing Case Study
Winnipeg law firm leases office equipment; discovers even more opportunity for access to capital.
A new law firm was looking for leasing options on a new office copier/ printer, a standard request in just about every business environment. In working with the customer, we discovered additional opportunities to improve their total access to capital. The total opportunity to assist them went beyond the single product they needed today, and quickly expanded to include equipment they already owned (office furniture). We also accounted for products they were looking to acquire in the near future (business signage), and all of this was integrated into one lease.
The unique aspect to this scenario was that we retroactively converted owned assets (office furniture) into a lease, one year after the furniture had been acquired via line of credit financing. This enabled us to float a large amount of capital back into the customer’s account, all of which can now be used for revenue generation activity.
For this customer, and for any new businesses starting out, access to capital is the cornerstone to success. Castle Leasing successfully opened up unrecognized opportunities to gain access to capital, and via our network of funding partners we provided a strategic funding option that has helped our client grow their business.
The Castle Difference
Castle was able to make this happen because of our comprehensive list of funding partners, each with different experience with certain products, industries and services.
The extended value of Castle is that this same customer also required a mortgage for the new property, and insurance for the business. Castle became the one-stop-shop for all of the customer’s commercial leasing needs, and they successfully leveraged the broad in-house expertise of the Castle Team.