02/24/2020
How to free up cash flow and increase tax savings for your business?
As a business owner, you know the importance of having reliable equipment and vehicles for your day to day operations. So, what purchasing options do you have? Traditional financing, line of credit or cash. While these are good options, let me introduce you to a different idea. Consider a lease to own financing option. Here are some of the benefits:
Since a lease is considered a direct expense to your business, Canada’s revenue agency allows leased equipment or vehicles to be used as an operating lease with potential tax advantages of up to 100% of each payment. This is a much larger tax saving than traditional loans.
With a commercial lease, no need to use the existing lines of credit you have already established at the bank since you have a new option to secure financing. Leaving that source of credit and your cash, intact for other needs such as materials or payroll. For many small and medium-sized businesses this is essential to growth, as expending requires capital from every available source.
Sales taxes on a lease are payable with each installment, so you only pay the HST on a small portion of the asset’s value. As opposed to a regular purchase or financing option where the entire amount of the sales taxes is due up front and adds to your cost of borrowing.
Stop putting your company’s money in depreciating assets, you will have more available to invest in profit-generating activities!!!
Take action, use the Book Now link below or call Phil directly: 613-770-1279, I can have you approved within 24 hours. Need help locating equipment or vehicles? I can help with that as well!
