Lease vs. Finance - Your Best Option
I’m often asked by customers whether leasing or financing will be the best option for them. While some customers have the standing capital to purchase a forklift outright, the overwhelming majority will choose to lease the equipment instead of using cash or a bank loan. But why?
There are many factors to consider when choosing whether to lease or finance a forklift, and I always recommend taking the time and careful consideration to do due diligence before making this important decision. One tool I frequently forward to clients to help in this process is a chart developed by Easylease Corp linked in the article below:
https://www.easylease.ca/PublicSite/benefits-with-leasing/
“Make money by using equipment, not by owning it.”
Easylease Corp. is a Canadian-based equipment leasing and finance company and we have a longstanding business relationship that has been highly beneficial to my customers.
When considering leasing a forklift there are advantages over financing that are worth taking into account:
- Instead of buying a forklift for the minimum your budget can accommodate today, leasing allows you to spread the costs evenly over a lease term, meaning you can lease a more suitable lift system that will meet your growing needs for years to come
- Leasing can cover all costs involved in your forklift including soft costs such as installation, service, customization, and even consultation
- Online lease applications are approved within minutes rather than the lengthy and complex processes of banks and other financing sources
- Because leasing isn’t borrowing money, it preserves your credit line for unexpected expenses and growing your business
- Unlike financing, monthly lease payments for forklifts are an operating expense from pre-tax earnings - giving you significant tax benefits (check with your accountant to make sure these tax benefits apply to your business)
Still wondering if leasing is right for you? As always, please reach out to me for more information or a discussion on what solution might be best for your situation. Also, have a look at these answers to leasing frequently asked questions on EasyLease’s website:
https://www.easylease.ca/PublicSite/frequently-asked-questions-about-leasing/