Lease or Loan- Which Is Best For My Business?

Business man thinking at work

The Best Option For Financing

Acquiring the equipment you need for your business shouldn’t leave you cash-poor. If your business’s working capital is stable or you are required to alter or retrofit your machinery to suit your operations, buying may be your best option. And buying is generally the least expensive model for equipment acquisition. But what if your business is growing quickly, you have capital tied up in other undertakings, or you are in a period of instability? If you don’t have the cash to purchase the equipment you need to maintain or grow your operations, leasing and loan solutions are available.



Financing Solutions That Meet Your Needs

Financing the equipment necessary for the success of your business can keep vital capital in your hands. Loan and leasing strategies both offer benefits to businesses seeking to acquire commercial equipment to sustain their operations. Equipment Financing provides flexible and customizable solutions to get the resources you need while managing your cash flow. Here we explore the benefits of each solution so you can decide which option is right for your business.


Loan It or Lease It?

Nearly 8 in 10 companies finance all or part of the equipment used in their business. Let’s compare the benefits of Loans and Leases of commercial equipment.

A Loan Is Best For: equipment you want to use immediately and own permanently. Usually, these are pieces that are vital for your core operations and that will serve you for a long period of time.

A Lease Is Best For: equipment you need to use, but do not need to own long-term. These may be project-specific pieces or equipment that becomes obsolete every few years.

A Loan Payment Looks Like: the cost plus interest calculated over the loan term. A loan may require a down payment and loans may require a more structured payment schedule. You will own the equipment after the final loan payment.

A Lease Payment Looks Like: 100% financing with no down payment and no upfront costs. Payment schedules can be customized to meet your needs. The lease finances the use (or depreciation) of the equipment and offers options to return, trade-in, or purchase the equipment at the lease-end.

Benefits of a Loan: 

      • Loan uses fixed business assets for collateral

      • Immediate tax deduction

      • Higher credit limits since assets put up as collateral

      • The asset is owned when the loan is paid

    Benefits of a Lease:

        • The leased equipment is the collateral, no fixed assets are necessary

        • No initial expenditures

        • Monthly payments tend to be lower than loan payments

        • Various equipment may be leased under a master lease agreement

      Regardless of your current cash flow, liquidity, and stability, there are financing options available to help you acquire the commercial equipment and vehicles you need. Consulting with a full-service financial solutions partner can provide the clarity you need to decide if leasing, a loan, or even an outright purchase will support your business. Our expert team can provide equipment financing solutions across a variety of industries and tailor a financial solution just for you. The advantages of partnering with FCL are:

          • Clever, knowledgeable, and empowered employees

          • Rapid response times

          • 95% approval ratio

          • Competitive rates

          • Experience and expertise

          • Fully tailored and flexible financial solutions

        The team at First Capital Leasing has over 85 years of combined experience designing customized financing solutions for businesses. Choose FCL because:

            • We offer one of the highest approval rates in Canada

            • Our team is creative and innovative in getting deals done

            • We have a vast network of underwriters as well as our own portfolio to offer both prime and non-prime pricing in the marketplace 

          • We offer a 95% approval ratio

          Choose What’s Best For Your Business With Options For Leasing And Loans

          Meet with the experienced and knowledgeable team at First Capital Leasing to really understand your options for loans and leasing. We can help you figure out which strategy can support your current operations and your vision for growth. But the truth is that the best solution for the equipment you need today, might not be the best solution for the equipment you need tomorrow. When you work with FCL we aim to make you a client for life. Once you have applied for financing,  you will never have to apply again. We will continue to partner with you for all your business financing needs and customize solutions just for you. If you are ready to explore loans and leasing for your business, connect with our team at First Capital Leasing today.


          Frequently Asked Questions: 

          Is there a maximum financing amount I can secure? 

          There is no maximum. We want to work with you to ensure you can secure the trucks or other vehicles you need. Contact our team to explore your options for commercial financing.

          What types of assets can I finance through First Capital leasing? 

          We can provide financing solutions for equipment across nearly all industries. Some of the most common industries we provide equipment leasing for include construction, agriculture, automotive, fitness, and technology. Click here to learn more about the various assets we can help you lease. 

          How do I apply? 

          We have an easy application process. Apply Here. And once you have applied, there is no need to apply again. We will continue to partner with you for all your business financing needs.



          Share this post :