There’s a romantic idea that perhaps we’re a little too attached to in Alberta: the idea of the cowboy, his horse, his gun, his patch of land. All these things are his – no one else owns them, no one else can touch them. He’ll work that land and ride that horse and use that gun, and everything that comes from all that will be his as well. He’ll have earned it, by himself and for himself, and no one can take that away from him. That’s the Albertan spirit of independence.
It’s admirable to be sure, and it can be tempting to see your own small business in a similar fashion – your pickup truck, your crane, your office. After all, you’re struggling against giants, and you want to maximize the things you know you can trust, the things you know cannot be taken away from you. Outright ownership of assets and equipment may seem appealing for this reason, but in truth more often than not leasing is the superior alternative for businesses of a certain size.
Liberating Funds
By leasing instead of buying, you escape the substantial up-front debt that purchasing modern, capable equipment or suitable properties will undoubtedly incur. This frees up working capital, which can be redirected to day-to-day business expenses, or even expansions. Furthermore, a lease gives you a pre-determined monthly line item, the steadiness of which is immensely helpful when calculating budgets. This combination of predictability and fluidity offers you the chances to both plan long-term more effectively, while also granting you a greater reserve of flexible cash-on-hand funds when unexpected problems arise.
Tax Benefits
Simply put, the less taxes you pay, the better. That’s true in life, and that’s true in business. Much of the time in Alberta, a lease payment can be written off as a full deduction against current earnings. With the right tax specialist working for you, leasing can allow you to keep more of the money you have earned in your pocket and not the government’s.
Stay Relevant
Maintaining an operating parity with competitors is crucial. If you decide to purchase upfront, with the speed of modern progress the fact is you may be left with obsolete equipment. You’re then forced to take on another debt, and then another, and another… That’s not true of a lease. It gives you a flexible way to consistently renew your fleet as required.
RISE Up
RISE Capital respects the frontiersman ethos that our province is founded on (just give us a few beers at the Stampede and see) but also recognizes the tactical advantages that leasing offers small businesses. We’re therefore proud to announce that we’re expanding the range of our services into strategic leasing, to help source, negotiate and sponsor leases – making sure you get the most cost effective terms available. Just this month, RISE helped PureHaul Transport lease additions to their fleet worth $200,000CAD, allowing them to meet increased client demand for their service. With a recognized partner like RISE acting as your advisor, new doors open – your small company can secure access to opportunities that would otherwise be beyond your reach.
RISE Capital respects the frontiersman ethos that our province is founded on (just give us a few beers at the Stampede and see) but also recognizes the tactical advantages that leasing offers small businesses. We’re therefore proud to announce that we’re expanding the range of our services into strategic leasing, to help source, negotiate and sponsor leases – making sure you get the most cost effective terms available. Just this month, RISE helped PureHaul Transport lease additions to their fleet worth $200,000CAD, allowing them to meet increased client demand for their service. With a recognized partner like RISE acting as your advisor, new doors open – your small company can secure access to opportunities that would otherwise be beyond your reach.
We’re here to see you succeed. Reach out to us today, and let’s start planning.
