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FAQ's/Support - Equipment Leasing

 

The Bailey Capital Fund:

"We will finance the next thing your business needs"

Frequently Asked Questions

Here's a list of some of the most commonly asked questions we get about Equipment Lease Financing, commonly referred to as simply "Equipment Leasing".

If you have any questions not answered here send us an email. We'll get back to you with your answer as quickly as possible.

Question List

  1. Why use leasing as an affordable solution in Canada?
  2. What advantages can I expect from leasing in Canada?
  3. Can I qualify for lease financing?
  4. What are my options at the end of my lease?
  5. I want to lease.... what do I do next?

1. Why use leasing as an affordable solution in Canada?

  • Monthly Lease Payments are more affordable for you or your Canadian business than a large, lump sum cash payment for an equipment purchase. With Leasing, you can afford the extras and get the equipment you really need today.
  • Your purchasing power is also increased through leasing. Your working capital is conserved and not committed to depreciating equipment. It is better to invest your capital in appreciating rather than depreciating assets.

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2. What advantages can I expect from leasing in Canada?

  • GET A TAX BREAK - In most cases, for Canada, lease payments may be deducted as an operating expense making payments 100% deductible. This means you realize a lower after-tax cost of the equipment due to an accelerated write-off over the lease term.
  • CONSERVE YOUR CAPITAL - Leasing preserves capital to invest in profit generating opportunities.
  • WORKING CAPITAL intended for equipment purchase can be retained to earn a higher rate of return.
  • MAKE BUDGETING EASY - Lease Terms, payment streams and options can be tailored to meet most budgets. Also, regular lease payments simplify accounting procedures, eliminate depreciation scheduling and ensure consistent control over equipment expenditures.
  • PRESERVE YOUR CREDIT - Leasing opens new credit lines which usually require no down payment or outside collateral, in Canada. As a lease is independent from other sources of financing, it extends credit limits, leaving more traditional sources open should they be needed. An established lease account can make it very easy to add more equipment when it is required.
  • UPGRADE WITH EASE - It is easy to upgrade your equipment so you can operate with the most up-to date equipment. You get credit for the amount you have paid off on your old equipment and the new equipment will be incorporated into a new lease with a new lease term.

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3. Can I qualify for lease financing?

  • Established businesses, commissioned sales representatives and professionals with a good credit rating can readily qualify for our best corporate rates.
  • Newer businesses and individuals, in Canada, with very good credit can also qualify for these excellent rates.
  • We can provide lease financing for most credit situations and will make every effort to get even the more difficult credits financed at the best terms possible.

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4. What are my options at the end of my lease?

AT THE END OF THE LEASE TERM YOU MAY:

  • Purchase the equipment for Fair Market Value or the Purchase Option established at the beginning of the lease.
  • Continue to Lease the equipment.
  • Upgrade the equipment by arranging a trade-in with the equipment supplier and starting a new lease based on the difference in the cost.
  • Return the equipment with no obligation.
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5. I want to lease... what do I do next?

  1. Determine your total equipment requirements. This can include equipment from different vendors such as suppliers or computers, furniture, other office equipment or any other equipment you require. All of your equipment can be combined on one lease, which generally gives you a better rate and simplifies your bookkeeping with only one lease and one payment.
  2. Complete the appropriate Canadian credit application as follows:
  3. ESTABLISHED CANADIAN BUSINESS (more than 2 years in operation)
      - Canadian Business Credit Application.
  4. CANADIAN BUSINESS LESS THAN 2 YEARS OLD
      - Canadian New Business Credit Application.
  5. Professionals, Commissioned Sales People and Individuals
      - Personal Net Worth Credit Application.
  6. Print, fill-out, and fax in the completed application to The Bailey Capital Fund Offices at 1-604- 984-6745 .

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