Why do people lease software for their business? Is leasing software right for you?

There are many reasons why leasing has become such a popular financing tool. This flexible financing option is now available to help companies finance software or website applications, not just hard assets like computers and servers.

Keep your cash.

Probably the number one reason businesses use leasing is that it allows you to keep your cash in the business, working for you instead of tied up in a depreciating asset. You can typically lease 100% of the amount, which means no big down payments either!

Imagine being less reliant on your bank.

What if you could save your bank line for emergencies or opportunities? Bank lines are best used for current assets like accounts receivables or inventory. Leasing can effectively increase your borrowing power and this can allow you to grow faster. We can even establish pre-approved lines of leasing credit – get what you need when you want it.

Think easy.

Leasing your software or website application is simple to do. For an established business that wants to lease up to $25,000, a simple one-page application form is all that’s usually needed. No huge process, no business plans and no waste of time. Even for larger leases, our requirements are much easier than a bank’s and we typically don’t need any additional security or collateral.

How about tax advantages?

In addition to paying sales tax on the payments instead of as a lump sum all up-front, leasing has potential income tax advantages as well. Most leases are tax deductible but check with your tax advisor for details on your specific situation.

Profit with time.

Pay as you profit from the use of the application. This means that you can easily track the costs and returns that you get from your software or website investment by matching the monthly payments to the monthly savings or revenue that the application provides.

Flexibility.

Leasing terms can be arranged for seasonal payments, shorter or longer repayment terms, progress payments or deposits on software or website developments and a wide variety of other requirements. Leasing is a financing tool that can allow you amazing flexibility if you need it.

Can you see clearly now?

As you can tell if you’ve read this far, leasing has many advantages over paying cash or using your bank. If you’d like to find out if it will work for you, too, call one of our Leasing Specialists at 604-251-5674 or 1-800-331-7388.