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Lease Agreement

Lease Agreement

Everything you need to know about leasing business assets.
What is business equipment leasing?

Equipment leasing is a contractual agreement between you and your lender, letting you borrow and use equipment, vehicles, or machinery in exchange for periodic repayments.

What types of equipment can I lease?

You can lease a wide range of equipment, including heavy machinery, vehicles, medical and scientific equipment, restaurant equipment, IT equipment, gym equipment, and more.

Who is the owner of the asset in a lease agreement?

The lender, or lessor, owns the equipment. However, at the end of the leasing period, you typically have the option to buy it (depending on the terms outlined in your contract).

Is equipment leasing tax deductible?

Some lease agreements allow for tax-deductible repayments. They may be partly or completely tax deductible, assuming your equipment is being used to generate accessible income for your business. Speak to your accountant for tailored advice.

Should you lease or buy business equipment?

Leasing, as opposed to buying, is a solid option for businesses that need equipment for a short period of time or are expecting their equipment to depreciate quickly. It can also be a smart move if you don’t want to dip into savings or disrupt cash flow, and it gives you the advantage of having your assets sooner rather than later at a lower upfront cost.