Deb’s Equipment Leasing Blog

Deb’s Equipment Leasing Blog

Fences make “better” neighbours!

I am always impressed when small business owners like myself, come up with creative and innovative ways to make tasty lemonade when handed sour and often rotting lemons.   This month, my hat is off to the owner of a property in the industrial area near the Stagewest Dinner Theatre in southeast Calgary.

After losing a substantial tenant to the faltering economy, this gentleman decided to create individual, short term rental units within his warehouse to keep the bank at bay.   He utilized movable fences to create storage bays designed to the customer’s specifications. The mobile fences were purchased from Pierre at “A Quality Contractor”. And now, here it comes….wait for it….

Did you know you can lease these mobile fences?   Perhaps there is a “financial work-around” that can help your business stay competitive in these challenging times?   Is there something you would like to lock up and keep safe for a short term? Let me know how I can help.

Call me anytime at 403-703-7301.   Deb Sands.

Leasing Protective Structures

While travelling on my sales calls yesterday, I spotted these “cover-all” type structures at a local northeast car dealership. I thought to myself, what a brilliant way to keep hail off your inventory during Calgary’s crazy summer storms!
I wondered how much their insurance premiums might drop by having these vehicles protected. I also realized there are savings to be had by NOT discounting hail damaged cars after the storm.
And finally, I considered the poor lot boy will not have to brush snow off hundreds of cars this winter.
 
Did you know these structures can be leased? Quickly and easily? I would suggest the savvy dealership owner would stack the monthly lease payment up against insurance savings and margins saved by NOT discounting damaged cars and trucks.
 
Now that’s living in the fast lane!

SaaS

There is much speculation today about whether one should visit the cloud for new software (SAAS), lease it, or just pay cash.

Industry expert, Daylan Block,  from Startech Business Systems has this to say….

When it comes to large technology purchases, like all business purchases, you have to consider the TCO (Total Cost of Ownership). I look at paying for technology through 3 different lenses depending on the customer needs. They are capital expenditure, leasing, and ‘As A Service’.

“As A Service” is simply using software on a server that you don’t own or see and is physically hosted and maintained somewhere else. We call this infrastructure “As A Service”, whether you store information in the google cloud, Microsoft Azure, AWS or a local hosting company.  The “AAS” model can be summarized like this; someone provides hardware for you, under a limited umbrella of software services, at an offsite location.

For many businesses, a cloud and “on premise” hybrid model will fit their needs and budget the best. You win and lose certain functionality by owning and not owning certain IT peripherals. This takes careful consideration and an understanding of the long term total cost of ownership. We have found that for most major server deployments in the cloud, running the servers for 730 hours per month (24 hours per day for 30 days) is a much higher cost than simply purchasing hardware on a lease and adding a service package to maintain it. However, if your business does not need to be running a server 24 hours per day 365 days per year, you may find the costs of running in the cloud to be competitive among other features and strengths like rapid growth or downsizing.

I used to think that leasing hardware and other IT peripherals was always the most expensive option and only for those who couldn’t fork out the capital for large purchases. Deb and her book have actually helped me to understand how depreciation of an asset combined with writing off equipment as an operational expense, can actually cost your business less from a TCO perspective at the end of a term. Add on the reliability of an experienced support company with tangible IT redundancy and security, and you may find that leasing hardware provides a stable and dependable solution for your business. All things considered, I know many of our clients have found this to be true.  

So, what’s the Rate?

When clients first talk to us about leasing, they always ask about the “rate.” As in, “what is the rate?” And to be honest, it’s not an easy question to answer. A lease is not like a mortgage where, if you qualify, you get the same rate as everyone else.

Financing rates to lease equipment vary depending on many different factors and they all have to do with YOUR specific business. From the time you incorporated the business, to what it does, to how you pay the company’s bills. And then there’s the type of equipment, the cost, the term, etc.

Often times people get very crabby with my team and say something like… “Whoa! That’s a lot of questions. I just want to know how much the payment is?” So after 30 years of trying to explain, I have come up with the PERFECT analogy.

Please follow along below….. One day a good lady friend comes to me and says….. “Can you please go buy me a new outfit? I have to go out” So, I head off to a nice ladies shop and pick out a lovely spring frock in pretty pastel colours with a cinched waist and a full skirt that settles just above the knee. Oh, and a matching purse and peek-a-boo heels. And yet, when she sees my offering, she yells at me and says….. “What is this? I am going on a field trip to the zoo with my youngest child and his grade 2 class. How on earth is this appropriate for a rainy day at the Calgary Zoo with 25 sticky, rambunctious seven year olds?” Of course, she has a point. It is not appropriate at all! But with so very little information to go on, the chances of being correct are incredibly low. So, the moral of the story is this – the more information we have about your company, the more accurate we can be with a lease payment quote.

We will always need:

1. How long have you been in business?

2. What does your business do?

3. What equipment are you buying?

4. Is the equipment new or used?

5. Is the business profitable?

For more tips on the complexities of leasing equipment, please download my free e-book at https://priorityleasing.net/equipment-leasing-guide-book/

#leaserates, #leaseplan #interestrates #interest #rates #rate

Trade Show Season is Approaching!

 

Why not Illuminate your Booth this Trade Show Season!

The benefits of exhibiting at a Trade Show can surpass any marketing or growth technique. Thousands of business deals are done at Trade Shows every year. The costs involved to display all of your products and services with tables, drape partitioning, tenting for outdoors, power, lighting, etc. can be an expensive venture.

In our experience at Priority Leasing we found that the items on the list below are imperative to making your Booth at a Trade Show be flawless:

– Pipe and Drape

– Tables

– Chairs

– Flooring

– Easels

– Skirting

– Signature tablecloths

– Tents, Awnings, and more…

Save Money and Impress!

Trade Show success is measured by how much effort you want to put into it. Why not save some effort and stress.. lease just what you need instead and save money, storage space, and ensure a successful Trade Show event!

The attached link will give you an idea of what Trade Shows will be coming to Calgary this year. Feel free to contact me at Priority Leasing to see how we can help! Tradeshows 2019

What is the most unusual thing you have ever Leased?

When it comes to business equipment leasing, you already know you can rent all the desks, chairs, computers and copiers you’ll ever need. Other common leases might include vehicles, conveyor systems, and construction equipment.
 
Over the past 25 years, we have leased some very strange equipment….. ambulances and the drugs on the ambulance, grand pianos, dental implants…. But this story takes the cake!”
 
 

Deb Sands
President
P: 403-216-1930
C: 403-703-7301
E: debbie@priorityleasing.net

How is Coffee like Leasing?

Procaffeinating (n). – the tendency to not start anything until you’ve had your coffee…

Coffee and Leasing are similar in many ways. Both are very popular, both have a slight fascination.

Many companies view leasing as old hat, very similar to banks and other institutions. But in reality, leasing has also helped companies grow and expand.

The key is both Leasing and Coffee can be personalized to individual tastes and businesses.

As you know, the strengths of coffee are varied, from Double Espresso, Latte, Macchiato, Americano, all the way to Decaf, in order to suit individual tastes.

Well Leasing is much the same, whatever the equipment, whatever the taste, leasing will help you reach the next stage in your business.

For instance, if you are a start-up, it can help you acquire the equipment you need to start, or as an established company, help you seize other business opportunities, for growth to complete a new order, or to grow your business in other ways. When competition is hard, the key to any vendor program is to minimize the cost objection, and leasing is the perfect and proven answer to this objection.

With business opportunities, “the window” only stays open for a short time. For more information about what you can Lease and how we can get you through that window! Feel free to contact us.

Have a success-filled week!

Debbie

Smart finance solutions for your business!

Every business owner needs equipment and technology for their day-to-day operations. However, you do not necessarily need to own the equipment.

For instance, owning a photocopier can be a financial burden for many small businesses. Aside from supply costs and maintenance fees, coming up with the initial capital to purchase the copier can stretch operational budgets beyond profitable limits. Copier leasing helps ease the up-front monetary investment and may also provide a number of other attractive benefits.

Copiers depreciate over time, losing their value due to use and to the constant introduction of newer, better technology. If your business purchases a copier, you can only upgrade in technology by investing in another new machine. You would also need to get rid of the previous model, adding to your time expenditure.

Rather than pay cash up front, a finance facility can give you much more control and flexibility. Whether you need a piece of computer software, a pizza oven, a tractor or even a snow plow, it is available for lease.

Calculating your costs when starting a business
As you may know, one of the most common causes of a new business failure is not having enough cash to meet expenses, especially in the first six to twelve months after start-up. But if you identify and plan for these costs, this is less likely to happen.

Calculate ongoing and one-time costs
Ensure you identify which costs will be one-time costs and which will be on-going. Some costs you may never have to cover again, while others may recur annually or every couple of years. It’s important to identify and budget for this early so you don’t get caught out in the future.

Set realistic expectations
As well as thinking about your start-up costs, also consider how long it will take until your business will open its doors and you will be generating revenue. Don’t set unrealistic expectations. If you get this wrong, costs can escalate quickly and you can find yourself under pressure to meet new costs without an income stream.

Overestimate costs
It’s better to over-estimate than to under-estimate. Many experts recommend adding 10% on top of your total costs to cover any miscellaneous expenses and unforeseen blow outs.

As I wrote earlier, every business owner needs equipment and technology for their day-to-day operations. However, a business does not necessarily need to own the equipment. Rather than pay cash up front, a finance facility gives you much more control and flexibility. Whether you need a piece of computer software, a pizza oven, telephone systems or even a snow plow, it is available for lease.

Leasing offers several advantages. Short-term leases allow businesses to explore new avenues without having to purchase expensive equipment for pilot programs. Leasing allows you to trade in your equipment periodically, staying current with the latest technology and trends.

The advantages keep on growing:

  • you don’t have to pay the full cost of the asset up front, so you don’t use up your cash or have to borrow money;
  • you have access to a higher standard of equipment, which might be too expensive for you to buy outright;
  • you pay for the asset over the fixed period of time that you use it, which helps you budget for the future;
  • as interest rates on monthly rental costs are usually fixed, it is easier to forecast cash-flow;
  • the leasing company can usually get better deals on price than a small business could and will have superior product knowledge

Keeping business equipment up-to-date with rapid advances in technology can quickly drain your capital. The right facility can give you the flexibility to upgrade your equipment.

Understanding the tax and accounting consequences and treatment of a lease is of primary importance.

This information is designed to provide a basic overview; applicability to specific situations would need to be determined through consultation with your professional accounting advisers. For more information.

This paper, which was written by the CFLA, will introduce some fundamental Canadian taxation and accounting concepts specific to the leasing industry. How leases are classified for tax purposes as either a capital or an operating lease will be discussed in addition to how a financial statement would record a capital lease from the perspective of both the lessee and the lessor. As well, the capital cost allowance system of tax depreciation will be reviewed.

For some commonly asked questions, I’ve written a Guide to help you decide what is best for your business.

Cash flow friendly payments

Clever finance solutions will help you manage your cash flow. With regular fixed payments, it’s easier to predict cash flow, and business capital is protected as you can access the equipment you need without large cash or capital outlays.

Tailor made finance

Flexible financing is our greatest strength. No two businesses have the same needs, so we can tailor a finance solution to meet your cash flow, timing and capital budget requirements.

Needless to say, efficiency translates to increased profit and a greater return on your lease investment.

For more information, please feel to contact me.

Northwest Dental Expo

Bob and I enjoyed a day in snowy Edmonton last Friday at the Northwest Dental Expo.  We met a lot of our newly acquired dental lessees and learned about the amazing technology that is totally changing the face of dentistry.   For example, there is a laser available now that will allow dentists to fix cavities and do other procedures without having to freeze your mouth.  No More Needle!   And there are 3D printers and milling machines that can make and bake a crown for you while you wait.  No more sending impressions off to the lab.

As you can tell, I’m pretty excited to be involved in this new industry, but for we’re still very much involved in all types of equipment.   So if you have a question about new equipment for your business, please give us a call!

Apple Fitness

Priority Leasing was pleased to be one of the sponsors of the Apple Fitness Stores “Experience 2019” yesterday at Heritage Park.     A host of industry experts spent the day speaking on the changes in the fitness industry including an amazing talk by Colin Milner, the CEO of the International Council On Active Aging.   We are a service provider to Apple Fitness and work with them to get state of the art fitness equipment into public facilities, boutique fitness clubs, condo corporations and office towers.