When our small and medium size customers need commercial equipment to grow their business, we usually advise a lease, but we also offer loans. When should one select a lease or loan? It is a common question that we address.
First, we all realize that everything today has technology embedded, and to hedge obsolescence, obtain 100 percent financing, and stay ahead of competition, it often makes good economic sense to lease, rather than buy. Plus, our clients like the flexibility it offers.
Flexibility in the financing terms is good for upgrades and changes that may be needed sooner than anticipated, and you don’t want aging assets to slow you down, or be stuck with having to re-sell assets.
Let’s face it; our technology requirements change every day. We need more memory or bandwidth or, perhaps, new software for better processing. Today’s leases often cover both the asset and the related software. We are happy to bundle this for you in a lease.
Many of our fast-growing clients also need to preserve cash flow for business development and don’t have time to worry about managing equipment. They want to keep their focus on their mission, and our business focus is to keep them equipped.
We are seeing an uptick in leasing in our Canadian markets because of economic buoyancy, readily available credit, and out our 14-year history of serving clients here.
Our company offers working capital loans in the United Kingdom where they are in good demand from law firms, medical service providers and other professional organizations. Our professions loans are discussed in my April posting.
We have plans to expand loan offerings in Canada next year. As customers express their needs in various markets, we adjust our product lines and portfolio mix to accommodate them.
Links for Association Information
The many benefits of equipment leasing are summarized here by the Equipment Leasing and Finance Association, based in Washington, D.C.
Leaseurope, based in the UK, provides a video on its website that explains leasing from a European perspective.
Click here for 10 questions to ask your financing provider.
For more information, please contact me directly, or you may arrange a consultation with our company, D&D Leasing, in Canada and the UK.