Provided by Brian Marling, Accredited Mortgage Professional,
Neighbourhood Dominion Lending Centres, Cobourg
Have you considered leasing your business-related equipment as opposed to buying it outright? Leasing enables business owners to pay for the product as it is being used while the revenue generated by the equipment ‘pays’ for itself. Virtually any other financing demands a substantial down payment, deposit or compensating bank balance. By leasing, business owners can quickly acquire use of the required equipment without major cash outlay.
Leasing can be an especially attractive option given that lease payments can be 100% tax-deductible, which may mean a more rapid write-off for business owners. And because the lease term is generally shorter than the depreciable life of the equipment, payments can be expensed in a shorter duration.
Neighbourhood Dominion Lending Centres has a leasing division – Dominion Lending Centres Leasing – that offers leasing programs providing 100% financing and requiring minimal investment for the ‘purchase’ of the equipment. Business owners can immediately take advantage of the benefits of the new equipment without using existing capital or credit, and continue growing their businesses. As an alternate credit source, leases don’t interfere with established credit lines, which, in turn, expands available working capital. Also, through Neighbourhood DLC a lease arrangement will NOT show up on your credit bureau.
Leasing options include new equipment leasing; used equipment and vehicle leasing; customized solutions through vendor finance programs; and lease-backs – where the lender buys equipment from a business owner and the owner leases it back.
Technology, heavy equipment and trailers, furniture and hospitality equipment, and manufacturing and industrial equipment are just a few examples of leasing options available to business owners. With today’s rapidly changing technology, some equipment can become obsolete relatively quickly. Leasing frequently enables business owners to acquire the new equipment they need without having to keep costly equipment working years beyond its profitable lifespan.
Vendor finance allows equipment vendors to offer customers another financing option besides cash-on-delivery or 30-day terms. On high-ticket items, this can be a major benefit, since it may not be possible for some customers to meet immediate payment terms. By extending the financing option through Neighbourhood DLC Leasing, the vendor provides a choice that allows customers to better maintain their own cash flow.
Vendor finance is also known as vendor leasing and helps build vendor-customer relationships while improving vendor sales volume. Customers can view the vendor as a one-stop shop where they can fulfill their orders and get financing, rather than having to seek financing beforehand from a bank or other lending institution.
With access to multiple lending sources, lease professionals can cater to leasing deals for a variety of credit scenarios ranging from A to C credit quality. Leasing provides known payments over a specified period – helping take the guesswork out of budgeting.
And because Brian Marling of Neighbourhood DLC is also a licensed mortgage agent, he can offer standard equipment leases and creatively structured solutions for seasonal, new or growing companies. Working with someone who is both a lease and mortgage expert enables business owners to even use commercial and residential mortgage and property credit line products, alone or in combination with lease financing, to help achieve the best solutions for their equipment acquisition needs.
Neighbourhood DLC leasing experts can even break up large-dollar transactions into multiple leases across a number of funders to ease and simplify the approval process.
As with any licensed mortgage agent who is also a leasing professional, they work for business owners and consumers – not lenders – ensuring all efforts are made to acquire the best available products and rates with their clients’ interests front and centre.