For an existing or new company, deciding what kind of industrial equipment leasing or purchasing is the best choice can be difficult. As industrial equipment leasing in Calgary involves lots of procedures, terms and conditions, easy financing depends on the type of industry and the type of equipment you need financing for. There are many industrial equipment financing programs that have been developed to meet the requirements of all types of businesses. These include those with poor credit or those who only operate seasonally.
As the manufacturing sector is fast growing, many companies are setting up their tools to benefit from this booming industry. Different types of businesses that provide equipment leasing in Calgary are flourishing, thanks to heavy investment in modern equipment and tools. Since several financial institutions offer every type of financing for machine tools and other related equipment, many people often get confused about loaning and leasing, while opting for any form of industrial equipment financing. It’s therefore advisable to read and understand the financial terms provided by different equipment financing companies.
Certain plans have been formulated to give new businesses the boost they need to be successful. The following are some of the plans that you’ll have to choose from:
Traditional industrial equipment leasing is meant for companies that aren’t interested in owning the equipment, but prefer to rent them. This type of lease includes no buyout terms and has low payments that are generally considered operating expenses when it comes to taxation. Traditional leases are especially helpful for equipment that depreciates quickly. You can rent what you need at a considerably lower price or even prolong the term to meet your needs.
This type of industrial equipment financing works similar to traditional leases, except that the equipment is bought at the end of the term. After the purchase has been paid in full, as well as interest, you’ll only have to pay a small fraction of the initial price tag to transfer ownership. In many cases, you’re allowed to pay a fraction of the original cost ahead of time to reduce the overall payments and show you can make payments. This form of equipment leasing in Calgary is suitable for those whose credit needs the extra boost.
Seasonal Payment Programs
These programs are ideal for seasonal businesses and organizations such as those in agricultural and construction sectors, which can only generate revenue during specific seasons or months of the year. In many cases, seasonal payments are fully customizable to meet the needs of the business or organization, such as the number of months in a year payments are made, the amount of the payments, and the duration of the term. During the off-season, only small amounts will need to be made.
Deferred payment programs are an ideal choice for new businesses considering equipment leasing in Calgary. These are designed the same way as capital and traditional equipment leasing plans except that the company doesn’t have to make payments during the first two or three months of the agreement. This way, companies with little or no income during the first few months will get up and running before they even begin paying for the equipment they need.
Step Up/Progressive Leases
Many companies and contractors often prefer this kind of industrial equipment leasing, especially when they’re buying an item for a certain set of contracts coming up that will see their revenue grow on a regular schedule. With progressive leases, the payments increase gradually, matching the increasing income.