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The Ins and Outs of Equipment Leasing in Saskatchewan

(5 min read)

Are you a business owner in Saskatchewan who is wondering how to acquire the equipment necessary for your operations without breaking the bank? Equipment leasing can be an ideal solution – it offers significant flexibility and financial advantages that might help you get much-needed machinery and other equipment without taking too much of a bite out of your budget. In this blog post, we'll discuss everything you need to know about finding a provider, negotiating competitive lease terms, and understanding the benefits of leasing in Saskatchewan. No matter what kind of business you own or operate, there's something here for everyone – read on to learn more!

An Overview of Equipment Leasing in Saskatchewan

Leasing equipment has become a popular option for businesses in Saskatchewan looking to grow their operations. With economic growth being a top priority for the province, leasing provides a cost-effective alternative to purchasing equipment outright. This can be especially beneficial for industries such as manufacturing, construction, and mining, which require specialized and often expensive equipment. With the high cost of purchasing manufacturing equipment, leasing provides a cost-effective solution that allows manufacturers to access the latest technology without the large upfront expense. The same goes for the construction industry, where equipment such as excavators and bulldozers come with hefty price tags. By leasing equipment, construction businesses can free up capital that can be used for other expenses, such as hiring new workers or expanding their operations. 

Ultimately, the variety of equipment available for lease makes it a viable option for businesses across a range of industries, contributing to the continued growth and success of Saskatchewan.

Benefits of Leasing vs Buying Equipment

When it comes to acquiring equipment, businesses have the option to either buy or lease it. While buying may seem like the more traditional route, leasing actually brings about numerous benefits. For one, it can offer significant cost savings since leasing involves lower upfront costs compared to purchasing. Additionally, leasing provides businesses with greater flexibility since they can upgrade or replace equipment more frequently without having to worry about finding buyers for their old equipment. Leasing also comes with tax benefits, as lease payments may be deducted as a business expense. Furthermore, leasing guarantees that businesses have access to the latest technology as equipment can be swapped out for newer models at the end of each lease term. Overall, leasing offers several advantages over buying, making it a viable option for businesses looking to stay competitive in today's ever-changing market.

Types of Equipment Leases

When it comes to leasing, Arbutus Capital has a variety of options to fit every individual's needs. It's important to consider all options and choose the option that is the best fit for your specific situation and needs. We are ready to assist and guide you through the process.

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 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.

At the end of your lease, you may exercise our Purchase Option or return the equipment to Arbutus. If cash flow is an issue, we also have a sale-leaseback option. This is when you already own the equipment, but we purchase your equipment and lease it back to you over time —  a useful option for those looking to improve their cash position in a hurry.

Qualifying for an Equipment Lease

Qualifying for an equipment lease may seem like a daunting task. However, with our easy application process, the process is hassle-free. We make it simple for business owners to apply for and obtain the equipment they need to grow their businesses, which means that business owners can get the ball rolling on their lease quicker than ever before. No more endless paperwork or waiting for approval — just a quick and straightforward application that gets you the equipment you need. 

Things to Consider Before Entering Into an Equipment Lease Agreement

Before entering into an equipment lease agreement, there are a few things to consider to ensure that you are making the best decision for your business. Firstly, it is important to do your research and choose a reputable equipment leasing company like Arbutus Capital. You should also consider the terms of the lease agreement, such as the length of the lease and the monthly payments. It’s also important to ensure that your lease agreement complies with Saskatchewan’s provincial regulations. Taking these factors into consideration can help you make an informed decision and avoid any potential issues down the line.

In conclusion, equipment leasing in Saskatchewan can be an effective way to obtain the necessary equipment without undergoing a full or partial purchase. With the right knowledge and information, you can benefit from numerous advantages over traditional purchasing options. It's important to understand the types of equipment that can be leased, qualifying criteria for leases, and any legalities that may be involved. At Arbutus Capital we are here to help you navigate these decisions and begin the process of leasing equipment so you can focus on running your business. Contact us today to get started!

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