Need to lease equipment? People choose to lease for a wide range of reasons. Thanks to its flexibility, leasing can help meet a variety of goals that businesses might have.
Benefits for Leasees
- Lease Almost Any Kind of Equipment. Almost anything a business could use to operate or generate revenue including machine tools, construction equipment, copiers, computers, software, office furniture, manufacturing equipment, medical/dental equipment, etc. can be leased. From single items, to an entire office or plant, all are available through our leasing programs.
- Stay on the Edge and Avoid Obsolescence. With today’s rapidly moving technology, some equipment can become obsolete relatively quickly. Leasing frequently enables you to acquire the new equipment you need without having to keep costly equipment working years beyond its profitable time.
- Project Costs More Accurately. Leasing provides known payments over a specified period. Leasing helps take the guesswork out of budgeting.
- Pay as the Cash Flows. Is your business seasonal? Is your business cycle predictable? Why not pay for that new equipment when it is paying for itself. Leasing is flexible because there is the option of customized lease payment schedules also known as a Seasonal Lease.
- Fixed Lease Payments. Fixed payments enable a lessee to more accurately predict equipment costs and cash needs.
- Capital Conservation. If it appreciates, buy it. If it depreciates, lease it. Leasing provides an alternate source of credit and financing more suited for depreciating assets.
- Overcome Budget Limitations. Often a business’s budget only allows the purchase of what they absolutely require, not what they really need.
- Conserve Credit Lines. With leasing, you can get the equipment you need now without disturbing your present bank credit lines. Preserving your bank lines for other possible uses means the same thing to you as expanding available credit.
- Potential Tax Advantages. Lease payments are often treated as fully deductible expenses. This may mean a more rapid write off to you. Because the lease term is generally shorter than the depreciable life, payments can be expensed in a shorter duration.
- Competitive Advantage. Leasing can help grow your business.
- Virtually 100% Financing. Practically any other financing demands a substantial down payment, deposit or compensating bank balance. By leasing, you can quickly acquire use of the equipment you want without major cash outlay.
In an effort to stimulate its sales, a retail equipment vendor can align itself with a Mortgage Centre Canada leasing professional and provide what is known as vendor finance or vendor leasing. To do this, the vendor must team with a Mortgage Centre Canada leasing professional so they can offer low monthly payment options to their customers. Essentially the Mortgage Centre Canada leasing professional becomes the vendor’s “in-house” finance company.
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 such immediate payment terms. By extending the financing option through a Mortgage Centre Canada leasing professional, 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.
The vendor provides a low monthly lease payment option along with their equipment quote. When their customer decides to purchase and they choose the leasing option, the vendor then supplies the customer with a lease application. The customer completes and faxes the signed application to a Mortgage Centre Canada leasing professional, which performs a quick credit check. If approved, the Mortgage Centre Canada leasing professional will then prepare a lease document package for the customer to sign with complete instructions. After receiving the signed lease agreements from the customer, the Mortgage Centre Canada leasing professional issues a Release or Purchase Order (depending on vendor requirements) to the vendor. The equipment vendor then delivers or ships the equipment to the customer. After the customer receives and accepts the equipment, the Mortgage Centre Canada leasing professional pays the vendor for the total amount of the equipment plus applicable tax within a short period of time (usually 2 to 5 days).
A Vendor Leasing Program can give your business a competitive edge over competitors who are unable to offer anything similar to their customers. By using the financing option, customers can also opt for top-of-the-line items, which they could not otherwise afford with COD or 30-day payment terms. In addition, you have the funds to build your inventory and offer a wider selection.
Mortgage Centre Canada leasing professionals provide fast and affordable equipment lease financing to businesses and government agencies across Canada and the United States. Through our equipment leasing division, we have become the “finance department” for many small to mid-sized equipment sellers.
3 Easy Steps!
The Easylease simple application submission requires only a handful of information to receive a call back from one of our leasing professionals who can help determine your needs and find solutions:
- Business Name
- Contact Name
- Email Address
- Business Phone
- Equipment Value
- Equipment Description
Simple 3 Step Process
Step 1 – Complete the Easylease Express application. The additional fields will assist us in our evaluation, and ensure we match you with a representative that is a specialist in your business sector.
Step 2 – Your request will be reviewed and you’ll receive communication to confirm your needs. If any additional information is required we’ll discuss that with you as well.
Step 3 – On approval and acceptance of the financing terms, our Team will coordinate with your equipment supplier, prepare your documentation and arrange funding.
Below are the requirements to qualify, depending on how long you have been operating:
2 Years Plus in Business
- Generating Revenue
- Registered Canadian Business either Incorporated, Sole Proprietorship, Partnership etc…
- A customer has been qualified and wants to finance their new or used equipment acquisition within the next 60 days
- Transactions $80,000 plus require two years financial statement plus interims
2 Years or Less in Business
- Transaction size not to exceed $70,000 CAD
- Customer must provide Personal Guarantee
- Personal Net Worth Statement
- New Business Outline
- 3 Months Bank Statements if available