At GFL, we've got the answers to your questions about leasing. We have compiled a series of questions and answers to help.
If you require additional information, please do not hesitate to contact us by chatting with one of our account managers or by calling an agent, both of whom will be glad to provide the information required in a quick and professional manner.
When you pay cash for equipment, the expenditure results in a decrease in the company's liquid capital and a major loss in financial leverage. Leasing allows you to maintain your operational or investment capital while having access to the productivity of newly acquired equipment.
Profit is the result of the use of equipment, and not its ownership. It is generally more profitable to lease equipment and use your capital for other purposes. Depending on the type of lease you choose, you have the option to purchase the equipment at the end of the lease or exchange it for a newer model or one better suited to the continued growth of your business.
A leasing term should not be longer than the useful operational life of the equipment. As an example, equipment that depreciates rapidly, like IT equipment, will be leased for a shorter period than industrial equipment having a long operational cycle.
The concept is similar. You only pay for the use of the equipment. When the equipment becomes outdated, in most cases you can replace it with a newer model or one better suited to the continued growth of your business.
No. Our leasing program lets you choose the accredited supplier of your choice, anywhere in the country. In some cases, we can even recommend a list of suppliers.
That's your decision. Our programs give you the option to purchase the equipment at the end of the lease for an amount or percentage of the original cost established at the beginning of the contract, purchase it at fair market value, replace it or return it to the financial institution.
If you choose a leasing program with a purchase option based on the value of the equipment at the end of the lease term, this amount will be determined by the market. A lease structured as a residual value reduces the payment amount, and allows you to use the amount of rent as a tax-deductible business operation expense. If you don't want to purchase the equipment and/or plan on replacing it, you have the option to return the equipment at end of the term.
This is essential so you can deduct payments as an operational expense. If the purchase amount at the end of term is predetermined, then we are talking about a financed lease and not as a pure rental.
The lessee is responsible for taxes. You don't have to pay tax on the total cost of the equipment, only on the lease payments. The lessor who collects the tax is responsible for forwarding it to the government.
Yes. We have programs that include this type of application.
No. A lease is a contract that cannot be cancelled.
Yes. You must insure equipment against fire, theft and vandalism, and, as the owner of the equipment, the financial lessor must be named the insurance beneficiary.
No. Your lease payments are based solely on the equipment used.