Pros And Cons Of Three Common Types Of Leasing

Pros And Cons Of Three Common Types Of Leasing

There are many types of leasing agreements that can help your business thrive and grow. The truth is that there is not a ranking that outlines which equipment leases or vehicle leases are better or worse. Instead, different types of leasing agreements can benefit different businesses at different times of their growth, expansion, and challenges. The perfect lease agreement is one that is clear, simple, flexible, and that works for your company. Choosing a leasing company with a variety of leasing options will allow you to tailor a leasing strategy that makes sense. This article will explore three common types of leasing and the pros and cons of each.

Which Type Of Leasing Is Right For Your Business?

Capital Leases
In a Capital Lease agreement, the lessee assumes all of the risks and the benefits of asset ownership. This type of leasing is most suitable for equipment such as tools and machinery that has a useful life of longer than 5 years. It is often not suited for equipment or technologies that may become obsolete quickly.

Pros Of A Capital Lease

Cons Of A Capital Lease


Operating Leases
An Operating Lease is essentially a rental agreement with the lessor. In this type of leasing agreement, the lessor maintains ownership of the asset and the lessee holds responsibility for the condition of the asset at the end of the lease term. There may or may not be a buyout agreement at the end of the lease term. 

Pros Of An Operating Lease

Cons Of An Operating Lease


Sale And Leaseback
A Sale-Leaseback agreement allows a company to sell an asset it has already purchased to the lessor and then lease back the equipment at favourable terms. 

Pros Of A Sale And Leaseback

Cons Of A Sale And Leaseback

For more insight into the right type of leasing for your company read
What Type Of Lease Is Right For My Business?


The Right Type Of Leasing At First Capital Leasing

As we mentioned at the start, there is no one-size-fits-all leasing solution. The perfect type of leasing strategy is the one that works best for your business. First Capital Leasing in Calgary is a full-scope financial services provider with the knowledge and experience to create tailored financing solutions that meet your needs and the goals for your company. We can help you figure out which type of leasing strategy can support your current operations now and in the future. For easy application and quick approval, fill out our online application. You only need to apply once and First Capital leasing will continue to be your financing partner for all your business equipment needs. Approval can usually be completed in less than 4 hours!  If you are ready to explore loans and leasing for your business, call our team at First Capital Leasing at 1-888-251-3644 or fill out our contact form today.

First Capital is the choice leasing partner for all of your business’s commercial vehicle leasing and commercial equipment leasing needs. Read more about the benefits of leasing and the common mistakes of leasing to make the most informed purchasing strategy decisions for your company.

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Q: How long will it take to receive payment after you have purchased my equipment in a sale-leaseback agreement?
A: We know how crucial it can be to receive funds quickly after a sale-leaseback contract is signed. Your business can receive payment in as little as 48 hours after all signed lease documents are received by First Capital Leasing.

Q: How does my business explore commercial equipment leasing with First Capital?
A: Our process is simple:

Q: Is there a minimum and maximum lease amount?
A: The minimum is $ 5000.00 and there is no maximum amount. To get started quickly APPLY HERE.

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We'd love to have the opportunity to understand your business and develop a strategy customized to your business' short-term needs and long-term goals.  We boast a 95% approval rate through our vast network of underwriters (including a robust private portfolio).   
Contact us at 1-888-251-3644 or complete the online contact form below. We look forward to connecting with you.

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