Why Consider a Lease for Heavy Equipment?

Leasing allows you to access the equipment that generates income for your business, while conserving your working capital. Yellowhead Equipment Finance is able to create a lease plan that can meet any client’s needs, while ensuring that you have the ability to do business and achieve growth.

Depending on how your business is structured, you may even be able to defer some income taxes. Operating Leases may also provide off balance-sheet "borrowing" which helps to keep your operating lines with your Bank unencumbered.

Many business owners are fixated on owning things. Paying cash however, uses up working capital that could be used to grow your business. With these cash purchases, you're even paying the PST & GST (or HST) up front! Though businesses can claim the CCA, the benefits of the right borrowing structure can outweigh it.

Many owners put off replacement of heavy equipment because of the difficulty and significance of the large outlay of a cash purchase. Business needs to use capital assets not own them!

Conserve Working Capital

Of course a loan will do that too, as long as your lender doesn't insist on a demand note. Some accountants will deem that a demand note makes the loan a current liability - so you might insist on a loan agreement where a "demand note" is only a distress measure. A demand loan may also restrict available capital for operations - particularly if your lenders are concerned about your total exposure if you are required increased operating lines to support growth.

Leases conserve working capital, and provide the purchase funding. It may allow you to defer PST & GST (or HST) over utilization rather than up front. You may be even be in a position to defer some income taxes resulting in a further conservation of funds.

Our team has experience with hundreds of clients, and has a full complement of lending solutions. We'll work with you to find the best solution to your finance needs, balancing your needs for Working Capital, payment schedules, and best solution for managing the tax implications.