FAQ - Frequently Asked Questions

Commercial equipment leasing is an agreement where a business rents equipment for a specified period rather than purchasing it outright. Leasing allows companies to use the equipment for their operations without the high upfront costs.  This is often compared to the rental agreements of equipment for a specific period instead of purchasing it outright. This helps preserve cash flow and can provide access to the latest equipment without the upfront cost.

We offer an Operating Lease (or Fair Market Value Lease).  The lessee uses the equipment for a set period without taking ownership. When you lease something you do not obtain legal ownership of the equipment until you exercise the purchase option at the conclusion of the lease. Leasing is the same concept as renting; financing is paying towards owning something. As Leases are considered renting, the expense including any life insurance premium is 100% tax deductible. Also, at the end of the lease you are able to exercise the payout option to purchase the equipment if desired. 

Purchasing equipment requires a large upfront payment, but you own the equipment outright. Leasing typically offers lower monthly payments compared to purchasing with a loan.

We look at all types of equipment that are for commercial use and generate revenue.

CONSTRUCTION EQUIPMENT Scissor lifts, Bobcats, Graders

LANDSCAPING AND YARD MAINTENANCE Zero-Turns, Mowers, Leaf Blowers, Tractors, Chain Saws, Snowblowers,

TRANSPORTATION INDUSTRY Highway Trucks, Trailers, Gravel Trucks and Trailer Wagons

HOSPITALITY INDUSTRY Kitchen Equipment, Sound & Lighting, POS, Liquor Dispensing Systems

OFFICE EQUIPMENT Computers, Desks, Photocopiers

FORESTRY EQUIPMENT Log loaders, Mulchers, De-limbers

OILFIELD MAINTENANCE Wireline trucks, Vac Trucks, Service Vehicles, Generators

COMPANY VEHICLES & WORK SITE LODGING Trucks, Cars, Travel Trailers, Well Site Shacks

 

Infinity typically assesses a business applications reviewing credit history, cash flow, industry length in business and financial stability.  We offer leasing for start up companies so will request a business plan.  We offer lending assistance from the applications between $1,000.00 - $500,000.00 over a 18-60 month term.

 

Our lease agreements have a purchase option of $100.00 to 15% of the remaining lease balance, depending on the lease structure.  

In certain circumstances, early buyouts may be available; however, they may be subject to penalties or fees. We encourage businesses to review their lease contracts carefully for specific details on early termination policies.

Clients also have the option to make bulk payments toward their leases to shorten the lease term.

Most leasing companies require the lessee to insure the equipment. This is to protect both the leasing company and the business from potential loss or damage to the equipment.

We require coverage as follows:

1. Liability
2. $5.0m on motorized equipment and $2.0 on non-motorized equipment.
3. Listed as loss payable with fire and theft coverage.

 

A sale-leaseback is a financial transaction where a company sells an asset it owns (such as equipment or machinery) to a leasing company and then leases it back immediately. This allows the company to continue using the asset while freeing up capital that was previously tied up in ownership.  This can aid in improving working capital and strengthen your company balance sheet. This allows companies to utilize the equity in their equipment to increase their cash accounts which can be necessary for company growth or assist with unexpected costs.  This can purchase new equipment, pay for some repairs, payroll or improve operating capital for upcoming projects or contracts.

Key Features of a Sale-Leaseback:

  1. Immediate Cash Flow:

    • The seller receives a cash infusion from the sale, which can be used to fund operations, invest in growth, or pay down debt.

  2. Continued Use of the Asset:

    • The company still retains the right to use the asset by leasing it back under a rental agreement, set on a term between 18-48 months.

  3. Ownership Transfer:

    • Ownership of the asset transfers to our leasing company and the seller becomes a lessee with a contractual obligation to make lease payments.

  4. Tax Benefits:

    • Lease payments may be tax-deductible as a business expense, offering potential tax advantages to the lessee.

  5. Flexible Lease Terms:

    • The lease terms (e.g., length, monthly payments) can be structured to meet the specific needs of the company, providing flexibility in managing cash flow.

The amount owing on your lease is the remaining payments plus any outstanding residual.  Example:  If your lease has 22 payments remaining of $1,000.00 per month, the payout would be $22,000 plus the residual that is specific for your lease. 

For More Information please contact Nikki Gallo at nikki@infinityleasing.ca

 

 

Yes, in many cases, lease payments are considered a business expense and may be tax-deductible. However, it’s important to consult with an accountant or tax professional to understand the specific tax implications.

Infinity Leasing offers flexible lease agreements that can be customized to meet the specific needs of your business. To provide additional peace of mind, our lease agreements can include optional life and disability insurance coverage. This ensures that in the event of unforeseen circumstances, such as the passing or disability of a key individual, your lease payments will be covered, safeguarding your business from potential financial strain. This added layer of protection allows you to focus on running your business, knowing that your leased equipment remains secure.

Please inquire for further information.