To Lease or Not To Lease
The following information can help you evaluate whether or not leasing might be a better alternative for you. Carefully consider your situation as it relates to each question, and make a note of whether your response is 'Yes' or 'No':
- Is the asset expected to depreciate or decrease in value over time?
- Is the equipment or technology likely to be replaced or upgraded within 5 to 7 years?
- Does the business have plans to increase revenues or expand operations in the near future?
- Could the business benefit from an expansion of available capital?
- Is the business likely to benefit by keeping operating credit lines available for planned and/or unforseen future needs?
- Is it possible that the decision to add new equipment may be postponed due to a lack of necessary capital?
- Could the funds necessary for an equipment purchase be used to earn a higher return by investing elsewhere within or outside the business?
- Will a disruption in cash flow resulting from a large purchase cause management concern or possibly hamper normal operations?
- Would you prefer to avoid having to request additional funds from your banker?
If you answered 'yes' to 3 or more of the above questions, you should definitely consider leasing as a possible alternative when acquiring new equipment.
Leasing may not be the best option where:
- The company has a surplus of capital available for investment.
- The asset is expected to appreciate in value over time.
To compare the advantages of our leasing plans against a bank loan or a cash purchase, visit our Leasing Comparison.
For larger transactions, you may prefer to have us prepare a Lease-vs-Purchase analysis for you. If you have any questions about determining whether or not leasing is the right choice for you Contact Us.
Westport Leasing Corporation
11198 - 84th Avenue Box 33026
Delta, B.C. CANADA V4C 2L7
Phone: (604) 681-1260 | Fax: (604) 681-1680