How Equipment Leasing Works in British Columbia
(5 min read)
Are you a business owner in British Columbia looking to grow your business? Equipment leasing can be an effective and cost efficient way to get the equipment you need without breaking the bank. Whether you’re operating a construction business, manufacturing company, or forestry operation, there are benefits to leasing that help businesses of all sizes stay competitive in today’s highly dynamic market. Read on for more information about how equipment leasing works in BC and the advantages it can bring to your business!
Overview of Equipment Leasing in British Columbia
The equipment leasing industry in British Columbia has grown significantly in recent years, as more and more businesses are choosing to lease equipment rather than make large upfront purchases. Equipment leasing provides businesses with greater flexibility and cost savings, as well as access to the latest technology and equipment without the burden of ownership expenses. With a strong demand for leasing services across a wide range of industries, the future of equipment leasing in British Columbia looks promising. As the industry continues to evolve, we can expect to see new players entering the market and innovative leasing solutions emerging to meet the needs of businesses in this dynamic landscape.
Benefits of Leasing vs Purchasing
Companies are often faced with the decision of whether to lease or purchase equipment. Equipment leasing is becoming a popular choice because it allows businesses to preserve capital while accessing the latest technology. Instead of committing to a large upfront cost, companies can make smaller payments over a set term, giving them the flexibility to upgrade as needed. Leasing can also provide substantial tax benefits, such as the ability to deduct lease payments as a business expense. Moreover, leasing equipment can give companies a technological edge without putting a strain on their finances — you can upgrade your equipment at the end of your lease term rather than having to buy new equipment every few years. Whether it's office equipment or heavy machinery, equipment leasing offers a wide range of benefits that companies in British Columbia should consider.
Types of Equipment Leases
A capital lease refers to a lease for an asset which is financed for most of its useful life and is consequently reported as a liability on the lessee's financial statements. An operating lease, in contrast, refers to a lease for an asset which is financed for less time than its useful life, and can be either returned to the lessor or purchased outright at the end of the lease term. An operating lease is consequently not capitalized on a lessee's books, providing the opportunity for it to be an off-balance sheet financing alternative.
Arbutus Capital offers financing for operating leases, as well as a sale-leaseback option for those with cash flow issues. With our sale leaseback option, you already own the equipment, but Arbutus Capital purchases your equipment and leases it back to you over time — a useful option for those looking to improve their cash position in a hurry. There is also the option to purchase the equipment at the end of your lease.
Types of Equipment Available for Leasing in BC
For those in need of equipment for their business, leasing can be a great option — especially with changes in the economic landscape. Fortunately, there is a variety of equipment available for lease in British Columbia for industries like forestry, construction, and manufacturing, and we are seeing more companies in these industries opt for equipment leasing. The forestry industry can lease specific equipment such as skidders, delimbers, and feller bunchers. Similarly, construction companies can lease equipment like excavators, bulldozers, and cranes to tackle large projects without having to purchase costly machinery outright. And for those in manufacturing, leasing options can range from equipment for food processing to industrial machinery like presses and lathes. With leasing options like these available, businesses in BC can avoid the financial burden of purchasing equipment and focus on growing their operations.
The BC Regulatory Landscape
Whether you're a leasing company or a lessee, it's important to stay up to date on the latest regulations and compliance requirements in your province to ensure that your business operates smoothly and without interruption. From equipment inspections to insurance requirements, understanding the ins and outs of the provincial regulatory landscape is crucial to long-term success when it comes to equipment leasing in British Columbia.
The Equipment Leasing Process
The equipment leasing process begins with submitting an application, which will undergo a credit assessment to determine if you are eligible for leasing. Once that's done, you'll work with the leasing company to select the equipment that best suits your needs. From there, you'll negotiate the terms of the lease, such as monthly payments and length of lease. While it may seem overwhelming, the team at Arbutus Capital is with you every step of the way and has decades of experience in facilitating equipment leases for our clients.
In conclusion, equipment leasing is a great way for BC businesses to acquire needed equipment without breaking the bank. The benefits of leasing provide companies with access to the equipment they need right away and give them greater financial control than purchasing by spreading out down payments and installments over time. With so many options at your fingertips, you have all you need to make sure that your business has all the necessary tools that will help your bottom line – without having to pay full price for those items upfront. If you feel that equipment leasing could be right for your business budget, contact Arbutus Capital today to get set up with an equipment lease that meets your criteria and guarantees success!