By working with Clarity, many owners have realized the benefits of leasing their fitness equipment acquisitions.  In addition to the tax benefits, leasing also allows for flexible payment schedules which can be structured to place the balance of your payments in busy months. Many clients have a need for specialized equipment that gives them a competitive advantage in their local market. Often, this specialized equipment comes with a higher price tag, this is where leasing fits in. If the equipment is revenue generating, meaning that it draws in cash

Types of Equipment

Clarity Leasing offers a variety of ways to lease gym equipment, and some of our clients have recently leased such items as:

• Nautilus Equipment
• Free Weights
• Exercise Benches
• Aerobics Equipment
• Universal Gyms
• Mats and Specialized Training Equipment
• And many others

Athletic Trainers, Physiotherapists, Occupational Therapists, can all benefit from smoothing their equipment acquistion costs over time, and optimizing cash flow as the business grows. Smart owners/managers ask: “What is the most efficient use of the capital available to me right now?”

To get a free, no-obligation lease quote, visit www.clarityleasing.com/approved

Canadian wines have become famous around the world for their creative blends and attention to detail. The first commercial Canadian winemaking operation began in 1866 when three gentlemen from Kentucky acquired land on Pelee Island – Canada’s most southerly (and warmest) point. There, they planted 30 acres of native North American Catawba grapes. A few months later two English brothers, Edward and John Wardoper, also set up shop on the island and planted their own vineyard. Gradually vineyards were planted on the mainland and slowly moved east along the shores of Lake Erie to the Niagra Penninsula, where Canada’s major concentration of vineyards is still situated today.

The first vineyards in British Columbia were planted in the 1860s at the Oblate Mission of Father Charles Pandosy near Kelowna, in the Okanagan, but it wasn’t until the 1930s that the first winery was established in the valley.

By contrast to Ontario, in the Okanagan Valley of British Columbia, the Church was the driving force behind the planting of vineyards and winemaking. Currently, there are 45 wineries in BC, which make up over 2800 acres under vine.

Source: Adapted from the Canadian Encyclopedia

The Future

According to a highly discussed paper published by Associate Professor of Political Science at Simon Fraser University, Andy Hira, the future of BC wine is being challenged by market saturation and steadily increasing costs of production. Hira’s central question is “can B.C.’s wines improve their quality and value to expand their markets or are we at the peak for the wine industry now?”

The Importance of Equipment

“Mechanisation is quickly becoming the best way to streamline production in agriculture.”

Consider these ideas addressed by Munckhof Manufacturing in Oliver, BC.  They supply a wide range of agricultural equipment, and they are Western Canada’s leading supplier of vineyard equipment.

- Any new technology or product that gets developed is only considered an asset or benefit until it reaches 50% usage in the industry. At the tipping point, it is simply a detriment to those who do not yet have it.

-All variable costs grow beyond static costs when viewed over a long enough time period.

It’s clear that having the right equipment is now a basic minimum for survival in the highly competitive, Canadian wine industry.  The trend towards global consolidation has changed the financing landscape for industrial and independent wineries, and margins continue to thin as large conglomerates capitalize on economies of scale and productive capacity. Canada needs entrepreneurs, especially in the wine industry, where creativity and attention to detail help evolve and inform our tastes and inspirations. And Canadian entrepreneurs need access to capital so that their operations can continue to grow.

As wine drinkers ourselves, we’re proud to partner with the independent vineyards and orchards across Canada that keep our economy growing. In agriculture, where revenues are seasonal and at times, unpredictable, smoothing the acquisition costs of equipment over its useful life can drastically improve long-term sustainability and profitability.

If you’re considering purchasing new equipment for your vineyard or orchard, call to talk with us to find out how leasing can help your operation save on tax, improve cash flow, and ultimately, become more profitable.

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Clarity Leasing is a privately held equipment finance firm that specializes in alleviating the capital restrictions on growing companies.

We talked with business owners, and the response was generally consistent. In an ideal dealership, the sales staff is friendly, courteous and approachable without being pushy or needy. The cars are high-quality and come with great warranty options – the car sells itself.

The service staff are hardworking experts  and the owner is hands-on, and willing to forge friendships with clients on a first name basis. Something about the business makes people want to come back, but nobody can quite put a finger on it.

This might not sound far off from what you, as someone who sells equipment B2B, would like to create in your business?

Now, imagine as you walk around the lot of this dealership, you see only the full MSRP listed on the vehicles and no monthly lease option. Chances are, the price is $10,000 too high (no matter it is).

As buyers, we have a knee-jerk negative reaction to paying large sums of money out of pocket. That’s human nature; the price is always too high.

That why you always, always, always see the monthly payment quoted in bold letters before you see the full price.

Say what you will about car salemen, they have certainly mastered buyer psychology. The dealership knows that not all customers will use their lease option. Some will  finance their purchase through the bank, and others will write a cheque. However, by showing their customers how the car can fit into their monthly budget they help show the true value of the car.

The same is true for the equipment business.

By presenting an affordable monthly payment, you can easily convert those customers that are reluctant write a cheque for the full amount into happy, paying customers.

Simply having the lease option available improves the tone of the discussion and increases the likelihood that your client will make a buying decision.

More often than not, your clients will find that leasing equipment produces a greater monthly operating profit, allows them to buy more of the equipment they need, and as a result, they will return at the end of their lease to upgrade or purchase more equipment from you.

The next time you’re in a car dealership, think about how easy they’ve made it for you to factor the expense into your monthly budget.

Let’s face it, $199 per month is a lot easier to swallow than $25,999 (plus tax!) out of pocket.

How can you do the same thing in your next sales proposal? By offering an affordable, monthly lease payment that fits into your client’s budget.

You’ll be surprised at how effective it is.

If you sell equipment, B2B, click here to find out more about Vendor Programs or use our Lease Quote Generator to include a lease quote with your next proposal.

Already with 4 locations in Vancouver, they’re poised for growth (via franchise) in LA, Toronto, and New York City

In light of this coming growth, this case will discuss and compare 3 different financing strategies for high-growth franchising models: Cash Purchase, Bank Loan, or Equipment Lease

Background

Adapted from Maclean’s, 2007

“Behind the spitting grill, Noriki Tamura keeps up with the crowd, dressing still-sizzling turkey dogs with pale brown miso mayonnaise, sesame sauce and a layer of crispy green radish sprouts. Through the smoke he looks like a natural. But just two years ago Tamura was a Tokyo ad salesman. In 2005, he and his wife, Misa, both 32, decamped for B.C. with dreams of opening their own food business. Tamura had always liked to cook, and his ad clients had included successful restaurant franchises. Before leaving Japan he’d never even seen a hot dog vendor.

The City of Vancouver has 120 spots for sidewalk food vending.  When there’s more than one application for a site, the winner is decided by lottery. Tamura hoped to set up a crepe stand, but was foiled by a civic bylaw limiting him to a beggarly list of soft drinks, ice cream and pre-cooked hot dogs.

There, he realized he needed a trademark to set him apart from the city’s 100-odd sausage sellers. So he spent his spare time cooking up Japanized hot dogs — and testing the results on a group of friends.”

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Tamura has become something of a folk hero in downtown Vancouver. Landing in Canada speaking very little English, he and his wife navigated complex paperwork and redtape, and managed to grow their business to more than 30 employees at 4 locations around Vancouver.

During the 2010 Olympics, his Burrard and Smithe flagship location had lineups of more than 100 people – all waiting to try one if his signature hotdogs. It came as no surprise then, to find out that Japadog is planning its expansion by franchising to owners in New York, Los Angeles, and Toronto.

Japa Dog is not only an encouraging story for fellow entrepreneurs, but it’s also a great chance to discuss the value of equipment leasing in a franchise-based business model.

Analyzing the cash-flow projections below, it becomes obvious that leasing is the preferred alternative. On top of financial gains, there are other benefits to leasing for franchisees and franchisors alike:

In addition to the tax savings, leasing also offers a great deal of other benefits, such as:

Let’s look at the numbers.

General

1 Hot-Dog Cart: $10,000

Capital Cost Allowance (Restaurant Equipment): 20% per year

Marginal Tax Rate: 30%

Bank Loan

Bank Interest Rate for Loan: 4.00%

Bank Interest Paid on Savings: 1.80%

Lease Option

Monthly Lease Payment: $360

Term: 36 Months

	PAY CASH		BANK LOAN
Initial Cost of Equipment	$10,000.00		$10,000.00		$10,000.00
Borrowing Costs based on monthly reducing balance	$0.00		$628.63		$2,960.00
Total Cost before taxes:	$10,000.00		$10,628.63		$12,960.00
Deductions allowable over term
Bank interest over term	$0.00		$628.63		$0.00
Total CCA Deductions over term	$4,240.00		$4,240.00		$0.00
Total rental payments over the term	$0.00		$0.00		$12,960.00
Total Allowable Deductions	$4,240.00		$4,868.63		$12,960.00
Benefit of allowable deductions
Total allowable deductions	$4,240.00		$4,868.63		$12,960.00
Deductions based on Marginal Tax Rate	$1,272.00		$1,460.59		$3,888.00
After-tax cost of the equipment	$8,728.00		$9,168.04		$9,072.00
Add the Loss on Value of Capital
Value over term at Bank Interest Rate on Savings	$554.42		$0.00		$0.00
When taxed at Marginal Tax Rate listed above, loss is:	$388.09		$0.00		$0.00
TOTAL OVERALL COSTS (after taxes)	$9,116.09		$9,168.04		$9,072.00
Overall Costs/Savings to Acquire Equipment	($883.91)		($831.96)		($928.00)
* Figures are for illustrative, conversational purposes only.	SAVED BY PAYING CASH		SAVED BY BORROWING		SAVED BY LEASING

Procuring mining equipment is often accompanied by the heavy burden of financing. After the tedious work of prospecting has paid off, and a valuable opportunity is present, there is often not enough cash on hand to support the setup costs of the project.

Compounding this problem is the fact that, right now, securing a loan is becoming more difficult as banks around the world tighten their lending standards. Bureaucratic red-tape has blinded many commercial lending institutions and the imposed formula for decision making has rendered them incapable of understanding the true value of many new projects. With the consistent (and sure to continue) appreciation of precious metals, many operators have found that it pays to partner with an equipment finance specialist that understands the mining industry to help improve project cash flows and meet target goals.

Whether you need a shuttle car, an underground loader, analytical tech solutions, a fleet of all-terrain dump trucks or the latest Long Wall Continuous Miner, Clarity Leasing will take the hassle out of finding a suitable and flexible financing solution. Clarity Leasing’s team has the experience and relationships to advocate your position to major funding sources and secure the right lease on attractive terms and conditions.

As your business grows, banks may want you to secure loans against real estate, restricting your options in the future. Yet in most cases, Clarity Leasing can secure the equipment loans against the mining equipment itself, without putting your personal property at risk.

The Benefits of Leasing

1. Leasing provides companies with a way to manage equipment they may not want long term
2. Leasing gives companies financial access to newer technologies when they need it
3. Leasing can be classified as an operating expense on your income statement and not as debt on your balance sheet, reducing the impact on debt-to-equity ratios and liabilities, which can enhance a company’s future borrowing capability
4. Cash can be reserved for other uses such as R&D, emergency expenses, and acquisitions
5. Income taxes can in many cases be drastically reduced

Companies are often surprised at how simple and effective leasing is for both major and minor mining equipment purchases.

We know that each situation is unique and complex, we work with you to find the right fit for your project.

Call Us for a free quote, or Apply On-line Now.

Equipment does not normally increase in value over time. It usually loses value. Even companies with ample cash resources must carefully evaluate every available financing alternative when acquiring new equipment. Cash tied up in fixed assets are no longer available to finance inventory and the profit producing activities of production, distribution and marketing. For this reason, many businesses seek to lease much of their equipment. They realize that owning a depreciating asset is not always the logical answer.

The practice of leasing is not confined to the business world. Universities, hospitals, government bodies, school boards and municipalities frequently lease the equipment they need to fulfill their respective missions. Cutbacks in public funding and increasing restraints on capital budgets present obvious difficulties in the acquisition of essential equipment. From computer hardware and software for administrative and educational uses to school buses, garbage trucks, police cars and sophisticated medical equipment, these are the kinds of essential equipment leased by public sector bodies. The federal and provincial governments too are major lessees of a wide range of equipment.

Source: Adapted from Canada Leasing Review published by Asset Finance & Leasing Digest (a Euromoney publication) in association with CFLA, April 1995

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Clarity Leasing is a privately held equipment finance firm that specializes in alleviating the capital restrictions on growing companies.

For the sake of simplicity, in this Brief Description of Asset-based Financing and Leasing, the word “equipment” includes vehicles.

A lease contract is an agreement under which the owner of the equipment conveys to the user the right to use the equipment in return for a number of specified payments over an agreed period of time.

The owner of the equipment is referred to as the “lessor”. The user of the equipment is known as the “lessee”. Very generally speaking, there are two kinds of leases. A capital lease is usually used to finance equipment for the major part of its useful life and there is a reasonable assurance that the lessee will obtain ownership of the equipment by the end of the lease term. An operating lease usually finances equipment for less than its useful life and at the end of the lease term, the lessee can return the equipment to the lessor without further obligation.

A lessor can be an individual or a corporation. In most cases, lessors are corporations specializing in financial services. They can be privately-owned companies, publicly-traded companies, divisions or subsidiaries of domestic or foreign banks, trust companies, insurance companies, manufacturing companies or automobile dealers.

Source: Adapted from Canada Leasing Review published by Asset Finance & Leasing Digest (a Euromoney publication) in association with CFLA, April 1995

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Clarity Leasing is a privately held equipment finance firm that specializes in alleviating the capital restrictions on growing companies.

We are proud to announce that we have partnered with a leading, Canadian distributor of HVAC solutions.

Complete Heating & Air – Conditioning offers the perfect solution at the right price. Whether you’re heating or cooling a single office or work shop, or retro-fitting an entire shopping mall, they carry everything you need from the most trusted names in the industry – Lennox, York, Reznor, Schwank, Honeywell and Viessman.

You might be asking, why should we lease our HVAC solution?

It’s a question we get a lot, and it’s one we like to answer. (See: 7 Reasons to Lease Commercial Equipment)

Though each industry brings its own unique questions and challenges with respect to financing decisions, when it comes to HVAC, these are the major reasons to consider lease finance.

Conserve Working Capital

• Working capital and lines of credit should be used for short-term or unexpected expenses, not to purchase long-term, capital assets.

Full Solution Financing

• Clarity Leasing is able to finance the full turn-key solution, including installation and accessories with minimal down payment. Often, all that is needed is the first month’s payment.

Tax Benefits

• In many cases, lease payments are considered a business expense item on the income statement and are therefore tax-deductible as a pre-tax expense.

Multi-Tenant Building Advantages

• Lease payments can be added to building operating expenses (ideal for stratas) for the purpose of tenant expense reimbursement. After reimbursement from tenants, the effective cost of the HVAC equipment is drastically reduced.

If your business is considering acquiring an HVAC solution, whether it’s a new-build, a retrofit, or a renovation, Clarity Leasing can help optimize your cash flow while Complete Heating & Air Conditioning helps you acquire the most dependable HVAC equipment on the market.

Call Us for a free quote, or Apply On-line Now.

Highly advanced X-ray machines have helped many dentists improve the accuracy of their diagnoses and prescribe more effective treatment plans.

Innovative scheduling and billing systems have revolutionized the way clinics communicate with their clients and have simplified the way patients pay for treatment.

Suffice it to say, the industry is changing and so is the way dentists compete for clients.

Every dentist would agree that having access to advanced technology is a fundamental contributor to the long term success of their practice. As in any other business, creating and keeping a customer always boils down to the client experience. And make no mistake, in dentistry, technology makes up a substantial component of the client experience.

If dentists know that technology and equipment is important, what’s stopping them from investing in the right equipment?

The answer is simple: Cash.

Major equipment acquisitions are often delayed or ignored because the up-front cash investment required is too large to justify. The purchase gets put off until “next year”, or “when we move offices” or any combination of excuses for not investing in the business. After a consecutive years of watching their patients find clinics that offer a superior client experience, revenues steadily decline and they are stuck with more difficult decisions, i.e., closing their doors or selling to a competitor. A competitor that understands the importance of strategically investing in equipment and technology while effectively managing working capital.

Leasing equipment allows you to smooth the acquisition costs over the useful life of the asset. In short, the clinic pays for the equipment as the equipment generates revenue.

If you own a dental practice, Clarity Leasing can help your clinic maximize cash flow, acquire the most advanced equipment and technology, and realize the tax benefits of leasing (See: 7 Reasons to Lease).

We will work with you to strategically alleviate your capital budgeting constraints and simplify the entire process, from quote to delivery. This frees you to focus on the your most important task,  growing your business by serving your clients.

Call Us for a free quote, or Apply On-line Now.