As an entrepreneur, you know that a new piece of equipment would help you further develop your organization, achieve new goals or meet customer demand. However, you’re not sure which type of financing would be best for you: leasing or loan? Depending on your situation, what’s the best way to acquire new work equipment? Find out the difference between the different methods of financing your next piece of equipment.
Financing methods: how to choose?
There are many ways to obtain a loan or lease financing, and therefore new equipment for your business. Whether you’re growing or restructuring, it’s important to be familiar with the different methods and find the one that best suits your financial situation.
If you opt for a loan with a bank, you’ll probably have to secure your loan with an asset, depending on your credit. When you take out a loan for new work equipment, you become the sole owner of the equipment and assume full responsibility for it, whereas when you take out a lease, you lease the equipment, always retaining the option of acquiring it in full at the end of the contract.
When it comes to payments, loans and leases work differently. Loan payments are repayments with interest, which in the long run reduce the capital. Leasing, on the other hand, is like renting. Loans generally require a down payment before the equipment is purchased, whereas leasing does not.
Leasing, an advantageous form of financing
In all cases, equipment financing through leasing offers numerous tax advantages. Among other benefits, leasing allows you to change equipment on a regular basis, so you’ll always be working with the latest machinery and tools, since you won’t own the asset unless you want to at the end of the contract.
What’s more, leasing is versatile and adaptable to a wide range of fields: whether for excavation, construction, transportation or other equipment, it’s the ideal financing solution for businesses that need reliable, quality equipment quickly and easily.
Lease financing protects your working capital, preserves your ability to borrow from banks and allows flexible payments tailored to your reality. To find out more about the leasing financing method and its features, please visit our leasing page.
The fast, efficient way to finance your equipment
The specialists at Affiliated Financial Services have been in the equipment financing business for over 45 years. A true reference across Canada for equipment financing of all kinds, we listen to our customers and take the time to fully understand your needs by analyzing your situation and determining what’s best for you. Always with an eye for detail, we can also help you obtain the equipment you need for your business activities in the shortest possible time.
Don’t hesitate to contact us if you have any questions. On the other hand, if you know what type of financing you’d like to apply for, you’ll find it fast and secure to do so directly online. It’s a simple and efficient way to get your next piece of equipment in less than 48 hours!