Cash flow can make or break your business. In Canada, 68% of small businesses faced cash flow issues in 2022, and 87% reported late payments. Even profitable businesses struggle when liquidity is tight, with 82% of small business failures tied to poor cash flow management.

To tackle these challenges, here are five financing solutions that can help keep your business running smoothly:

• Equipment Financing: Spread out payments for tools and machinery instead of paying upfront.
• Equipment Leasing: Access equipment without ownership, with flexible payment terms.
• Business Loans & Working Capital: Quick cash for daily operations or growth.
• Dealer Financing: Combine equipment purchase and financing in one simple process through Equipment Financing or Equipment Leasing Options.
• Government-Backed Loans (CSBFP): Easier access to funds with lower risk for lenders.

Each option is tailored to specific needs, whether it’s preserving cash flow, upgrading equipment, or covering operational costs. The right choice depends on your business goals and cash flow situation.

How to Fix Your Business’s Cash Flow Problems in 5 Steps

Equipment Financing: Buy Equipment Without Large Upfront Costs

Equipment financing provides Canadian small businesses with a practical way to get the tools they need without draining their cash reserves. Instead of paying the full cost upfront, businesses can spread payments over time, keeping funds available for day-to-day operations and unexpected needs. Here’s a closer look at its benefits, eligibility requirements, and how it compares to outright purchases.

Benefits of Equipment Financing

Some major advantages include:

• Preserving Cash Flow: Avoid large upfront payments and keep funds available for other priorities.
• Custom Payment Plans: Tailored schedules that align with your revenue cycle.
• Simplified Budgeting: Fixed monthly payments make planning easier.
• Tax Advantages: Monthly payments may qualify for deductions, reducing overall costs. Review with your accoutant
• Upgrading Options: Easier to replace equipment before it becomes outdated.

“Financing equipment is a cost-effective way for small businesses to acquire assets based on their cash flow.” – Jocova Financial, Elliott

Eligibility and Terms

Most Canadian businesses can qualify for equipment financing or equipment leasing, provided they meet some basic criteria. Generally, you’ll need at least 12 months of operating history, steady revenue, good credit, and enough working capital to manage monthly payments.

Terms

• Duration: Typically, loans range from 12 to 84 months, offering manageable payments while allowing immediate use of the equipment.
• Interest Rates: Rates vary between 6% and 19% APR, though well-qualified borrowers may secure rates low rates such as 0% through manufactured sponsored programs. Rates are also impacted by term and amount.
• Collateral: The financed equipment often serves as collateral, which can help lower your interest rate.

Approval rates are high, with Jocova Financial’s credit team reporting that nearly 90% of applications get approved, and funds can be available within the same day in a lot of cases.

Comparison: Financing vs. Outright Purchase

To decide between financing and buying outright, it’s important to weigh the impact on your cash flow and long-term goals. Here’s a quick comparison:

For businesses managing tight cash flow or planning for growth, equipment financing can be a smart way to secure essential tools without compromising financial stability.

Leasing Options: Flexible Equipment Access Without Ownership (immediately)

For Canadian small businesses, leasing offers a practical way to access essential equipment without the commitment of ownership. Unlike an outright purchase, leasing allows you to use equipment for a defined term while the lessor retains ownership. This flexibility is especially useful in times of inflation and economic uncertainty – fitting for an industry valued at $38.5 billion. Following term maturity, many leases auto-terminate and pass ownership of the equipment to the lessor for a nominal fee that is auto-debited (i.e. $100).

Leasing spreads costs into manageable monthly payments, preserving your cash reserves for other priorities. Whether it’s construction machinery, medical devices, or software, leasing gives you access to the tools you need without draining your working capital. Let’s explore the different lease structures available and how they can fit your business needs.

Most Popular Types of Leases

Leasing options can be tailored to align with your business goals and financial strategy. Here’s a closer look at the main types:

• Finance Leases: Also known as capital leases, these are closer to ownership. The equipment appears on your balance sheet as both an asset and a liability, making it a good choice for items with a long lifespan. You get the benefits of ownership without the upfront cost.
• Sale-Leaseback: This option lets you sell equipment you already own to a leasing company and then lease it back. It’s a way to free up capital while continuing to use the equipment.
• TRAC Lease: This type of contract allows for an enhanced residual at the end of term. It helps reduce the monthly payment for cash flow, and provides additional flexibility come end of term

In British Columbia, for instance, construction companies are using lease-to-own models for heavy machinery like loaders and excavators. Meanwhile, medical clinics are leasing advanced imaging equipment and laser machines to expand into suburban areas like Langley and Delta without tying up capital. In Ontario, there are many companies financing construction, landscape, manufacturing, and transportation related equipment.

Advantages of Leasing

Equipment Leasing comes with several benefits that can help address the financial challenges small businesses often face:

• Cash Flow Preservation: Keep your working capital available for inventory, payroll, or unexpected costs.
• Tax Perks: Lease payments are could be fully deductible as business expenses. Review with your accountant
• Credit-Friendly: Leasing may not impact your credit as much as traditional loans depending on your provider.
• Upgrade Flexibility: At the end of the lease, you can return equipment and lease newer models or take over ownership of the equipment.
• Predictable Costs: Fixed monthly payments simplify budgeting; no changes due to interest rate, especially for businesses with seasonal revenue.

Business Loans and Working Capital: Quick Access to Operating Funds

In addition to equipment financing and leasing, business loans and working capital solutions provide businesses with immediate cash to handle operations or support growth. Unlike equipment financing, which is tied to specific assets, these options offer a lump sum that can be allocated flexibly based on the business’s needs.

Working capital loans are particularly useful for covering daily operations during cash flow shortages. For instance, some businesses will by building supplies for a job, some may cover payroll while waiting for a large cheque to clear, and others may make a tax payment owed.

Benefits of Business Loans

Business loans come with several advantages for managing cash flow issues. The approval process is often quicker than traditional financing methods, and borrowers don’t need to specify how the funds will be used. This quick access to funds is essential for addressing unexpected challenges, such as covering payroll, rent, or debt payments. The flexibility also allows business owners to invest in other areas like inventory, marketing, or hiring.

Government programs like the Canada Small Business Financing Program (CSBFP) further support small businesses by sharing risk with lenders. Over the past decade, more than 53,000 CSBFP loans, totalling over $11 billion, have been issued to small businesses. These loans include both term loans and lines of credit, which can be used for various purposes, including working capital.

Comparison of Financing Options

To better understand the available financing options, here’s a breakdown of common methods. Each serves as a valuable tool for addressing the persistent cash flow challenges faced by Canadian small and medium-sized enterprises (SMEs):

Term loans are ideal for significant, long-term working capital needs. Under the CSBFP, businesses can borrow up to $1,000,000, with interest rates set at the lender’s prime rate plus 3%. These loans come with predictable monthly payments, making them easier to budget for.

Lines of credit offer more flexibility for managing fluctuating cash flow. You can draw funds as needed and only pay interest on what you use. Through the CSBFP, businesses can access lines of credit up to $150,000 at the lender’s prime rate plus 5%. This option is particularly helpful for businesses with seasonal revenue or unexpected opportunities.

Merchant cash advances, while offering the fastest access to funds, come with higher costs and shorter repayment terms. They are best suited for businesses that need immediate cash flow. Jocova can help offer these along with traditional working capital loans.

When deciding on the best financing option, evaluate your cash flow needs based on historical trends and current demands. Consider factors like the turnover of accounts receivable and inventory to measure working capital efficiency. Accurate cash flow forecasts can help you determine the right loan size while ensuring repayment doesn’t strain your operations.

Dealer and Manufacturer Financing Programs: Direct Equipment Financing

Dealer and manufacturer financing programs offer a practical alternative for Canadian businesses navigating cash flow challenges. These programs connect businesses directly with equipment suppliers and their financing partners, eliminating the need for third-party lenders. Unlike traditional bank loans, which often involve separate applications and approvals, dealer financing combines the equipment purchase and financing into a single transaction. This approach reduces paperwork and speeds up the approval process, providing quicker access to equipment along with competitive rates and flexible terms. Jocova Financial runs many equipment dealer and manufacturing financing programs in this fashion designed to provide dealers and customers a seamless and convenient way to acquire equipment.

Streamlined Procurement

One of the biggest advantages of dealer and manufacturer financing with Jocova Financial for instance is how it simplifies the procurement process. By cutting out third-party lenders not associated with the dealer, businesses can handle equipment selection, financing applications, and approvals in one go – often completing the entire process in a single day. This streamlined approach is especially useful in urgent situations, such as when equipment breaks down or when market opportunities demand quick action.

Dealer financing integrates the purchase and funding process, making it easier for businesses to secure the tools they need. A good vendor financing partner can even create custom programs to help businesses move inventory faster and close deals more efficiently. Additionally, dealers and manufacturers often work with a network of financing partners, offering a range of options tailored to various credit profiles and business needs. This flexibility increases the chances of approval, even for businesses that may struggle with traditional lenders.

Benefits for Canadian Businesses

Beyond simplifying the process, dealer financing delivers key financial benefits for Canadian small businesses. One standout advantage is the competitive rates often available through these programs. Manufacturers sometimes subsidize financing to boost sales, making their offers more attractive than traditional loans or credit lines.

“The equipment leasing promotions on equipment are generally very compelling when you’re dealing with a manufacturer’s subsidy program which can have rates starting at 0%” – Elliott, Jocova Financial

These competitive rates can lead to lower overall financing costs. Manufacturers may also offer promotional rates and special terms that are unavailable through conventional lending channels. Another benefit is the flexibility of payment plans, which can be tailored to match a business’s cash flow. For example, seasonal businesses or startups with irregular revenue streams can opt for payment structures that align with their financial cycles.

Dealer financing also offers quicker access to equipment. While traditional loans may take weeks for approval, dealer equipment financing and equipment leasing often provides same-day decisions and funding. These programs also cater to businesses that might not qualify for conventional loans, and they make it easier to upgrade equipment at the end of a lease term.

It’s important, however, to weigh the long-term costs and flexibility of any financing program against your business’s needs. Look for programs that accommodate a variety of credit profiles to maximize your options.

Government-Backed Financing Programs: Canada Small Business Support

Small businesses in Canada often face challenges when trying to secure traditional financing. To help address this, the Canada Small Business Financing Program (CSBFP) provides government-backed loans, making it easier for businesses to access the funds they need. By sharing the financial risk with lenders, the program opens doors for businesses that might otherwise struggle to qualify for loans.

The CSBFP is designed to support essential business needs like equipment upgrades, working capital, and other operational costs. It complements other financing options by reducing lender risk and easing credit requirements, offering much-needed relief to small businesses.

Overview of the CSBFP

The CSBFP aims to help small businesses in Canada start, expand, or modernize their operations. While private lenders manage the loan process – including approvals and administration – the program provides the government backing that makes these loans more accessible.

To qualify, businesses must:

• Operate within Canada.
• Serve Canadian customers.
• Generate annual revenues of $10 million or less.
• Be for-profit enterprises.

The program supports most industries and offers two main financing options:

• Term Loans: Up to $1 million for purposes such as real property purchases, equipment, leasehold improvements, intangible assets, and working capital.
• Lines of Credit: Up to $150,000 to cover day-to-day operating expenses.

A 2% loan registration fee applies, which can be financed through the loan itself. Interest rates are capped at prime + 3% for variable loans or 3% above the lender’s residential mortgage rate for fixed-rate loans.

Since its launch in 1999, the CSBFP has been a significant source of financing for Canadian small businesses, facilitating over 200,000 loans worth nearly $27 billion. In 2023–24 alone, the program issued 6,238 loans, totalling close to $1.8 billion. Start-ups and businesses less than a year old received the bulk of these funds, accounting for $1.3 billion (73.5%).

The program’s funding in 2023–24 focused heavily on:

• Leasehold Improvements: $1.1 billion (61.4%).
• Equipment Loans: $363.6 million (20.5%).
• Working Capital and Intangible Assets: $54.2 million (3.1%).

The accommodation and food services sector was the largest beneficiary, receiving $859.0 million (48.5% of total loan value), followed by retail trade at $253.5 million (14.3%).

Comparison with Private Financing

The CSBFP stands out when compared to private financing options, as shown below:

Applications for the CSBFP are handled by participating banks and credit unions. The government guarantee often makes it easier for businesses with limited credit histories or collateral to secure funding. On the other hand, private financing typically demands stronger financial records, a solid credit history, and significant collateral. For small businesses needing quick access to capital, the CSBFP offers a practical and more accessible alternative by bridging the gap between traditional lending requirements and the realities many small businesses face.

Conclusion: Choosing the Right Financing Solution

Cash flow issues are a common hurdle for many small businesses across Canada, but the right financing solution can transform these challenges into opportunities for growth. Each financing option serves a specific purpose: equipment financing helps build equity, leasing conserves cash with flexible payments, business loans and working capital provide versatile funding, dealer financing streamlines procurement, and government programs make financing more accessible.

However, rapid growth without proper planning can be risky. Tim Berry from Entrepreneur.com highlights this danger:

“One of the toughest years my company had was when we doubled sales and almost went broke. We were building things two months in advance and getting the money from sales six months late. Add growth to that and it can be like a Trojan horse, hiding a problem inside a solution. Yes, of course you want to grow; we all want to grow our businesses. But be careful because growth costs cash. It’s a matter of working capital. The faster you grow, the more financing you need.” – Tim Berry, Entrepreneur.com

This underscores a critical point: 82% of small business failures stem from poor cash flow management or a lack of understanding. Before committing to any financing option, it’s essential to evaluate your loan purpose, repayment terms, collateral requirements, and the approval timeline. And don’t forget – the best time to secure financing is before you’re in urgent need, as it allows for better negotiation and more choices.

For Canadian small businesses, aligning your financing decision with your cash flow cycle is key. Considering that 61% of Canadian entrepreneurs feel they don’t know enough about available financing options, partnering with knowledgeable providers can make all the difference. Jocova Financial offers tailored services, including equipment financing, leasing, business loans, and working capital solutions, designed to meet the unique needs of Canadian businesses.

Your cash flow challenges don’t have to limit your potential. With the right financing partner and a well-suited solution, what seems like a setback today could become the foundation for sustainable growth tomorrow.

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Key Points:

• Leasing: Lower upfront cost, predictable payments, potential maintenance coverage, easier approval process, but may have a  higher total cost over time.
• Buying: Higher upfront investment, ownership benefits, and potential long-term savings, but full responsibility for maintenance and repairs.

Quick Comparison:

Your decision depends on your financial situation, industry needs, and the expected lifespan of the equipment. Leasing suits businesses with limited capital or rapidly evolving needs, while buying benefits those with stable cash flow and long-term usage plans. Also, if equipment is leased vs. bank financed, it can be a much quicker process with an dedicated equipment finance company then the bank but interest rates will be marginally higher then the bank which holds a bundle of your products, services and personal guarantees as collateral.

Leasing vs. Buying a Truck in your Corporation – Canadian Tax Tips!

Main Differences Between Leasing and Buying Equipment

Understanding the differences between leasing and buying equipment can help Canadian small businesses align their decisions with financial and operational goals. Below, we break down each method and how it affects cash flow.

What Is Equipment Leasing?

Leasing equipment means you’re essentially “renting” it instead of purchasing it outright. You make regular payments – monthly or quarterly – to a leasing company for the right to use the equipment over a specific term, which can range from a few years to several.

At the end of the lease, you usually have three options: purchase the equipment at its residual value, renew the lease, or return the equipment. This flexibility is especially helpful for businesses that need to keep up with rapidly changing technology or prefer predictable expenses. Jocova Financial focuses on capital leases were there is usually a nominal lease buyout (i.e. $100) and the equipment ownership is transferred to the customer.

Since the leasing company owns the equipment during the lease, they often may be able to such services as insurance or bundle a supplier maintenance package into the leasing contract, depending on the agreement. This can ease the administrative workload for your business.

What Is Equipment Buying?

Buying equipment, on the other hand, means you either pay for it upfront or finance it to eventually own it. This requires a significant initial investment, either in cash or through financing options. Once purchased, you own the equipment and are responsible for all maintenance, repairs, and eventual disposal.

Ownership gives you the freedom to customize the equipment to meet your business’s unique needs. You also have the option to sell it when it’s no longer required. In Canada, financing options for equipment purchases include traditional bank loans, dealer financing, and lines of credit. These typically involve a down payment and structured repayment terms over several years. The bank process can also be more cumbersome then leasing so timeline is important to understand.

Effects on Cash Flow and Balance Sheets

Leasing and buying have distinct impacts on your cash flow and balance sheet.

Leasing allows you to spread costs over time with regular payments, which helps preserve cash for other business priorities. Lease payments are usually classified as operating expenses, making it easier to budget without a hefty upfront cost but please review with your accountant for tax treatment as this can change.

Buying, however, requires a large initial outlay, which can immediately impact your cash reserves. For instance, a significant purchase might reduce your ability to handle unexpected expenses or invest in growth opportunities. On the balance sheet, the equipment is recorded as an asset, while any financing creates corresponding liabilities.

In short, leasing helps conserve cash by spreading costs, while buying ties up capital and adds liabilities. These differences also influence tax strategies and overall costs, which will be explored further in the next section.

Cost Analysis: Which Option Costs Less?

The total cost of acquiring equipment depends on factors like your credit profile, the type of equipment, and how long you plan to use it.

Leasing Costs

Leasing typically involves monthly payments based on the equipment’s value and interest, spread over two to seven years. For leases under $100,000, rates usually fall between 6% and 12% if you have good credit, term selected and amount. Generally, the more the asset costs and the longer the term, the less interest rate will become.

Leasing requires little to no down payment, which helps preserve your working capital. For example, leasing $90,000 worth of equipment over five years at an 8% interest rate would result in monthly payments of about $1,825. At the end of the lease, you often have options: purchase the equipment (i.e. $100 buyout), renew the lease, or return it.  The Canadian equipment leasing market is valued at $38.5 billion.

Buying Costs

Purchasing equipment requires a larger upfront investment, whether paid in cash or through financing. Financing adds loan interest, which varies based on your credit. For major purchases, interest rates typically range from 5% to 10%, affecting your monthly expenses.

Beyond the purchase price and interest, there are other costs to consider, such as transportation, installation, maintenance, training, and potential downtime or malfunctions. However, purchased equipment becomes an asset on your balance sheet and may retain some resale value, even though it will depreciate over time.

To make things clearer, here’s a comparison of leasing and buying:

Cost Comparison Table: Leasing vs Buying

Choosing between leasing and buying depends on your cash flow needs and how long you plan to use the equipment. Leasing helps with predictable payments and keeps more cash on hand, while buying might save money in the long run if you plan to keep the equipment for several years. Keep in mind that lease rates in Canada are often negotiable, so it’s worth shopping around and improving your credit profile before committing.

Tax Rules for Canadian Small Businesses

The Canada Revenue Agency (CRA) has specific rules for leasing and buying equipment that directly influence your tax obligations and cash flow. These rules play a crucial role in shaping your tax strategy and evaluating overall costs. Check the link and with your accountant when you are looking at acquiring equipment and what works best for your business and the CRA for accounting purposes.

Pros and Cons of Leasing vs Buying Equipment

When deciding between leasing and buying equipment, it’s essential to weigh the operational benefits and drawbacks of each option. Both approaches have unique advantages and challenges that can influence your business operations, financial health, and long-term strategy.

Leasing: Advantages and Disadvantages

Leasing equipment offers several benefits, especially for small businesses in Canada. One of the biggest perks is the low upfront cost, which helps preserve cash flow for other essential expenses and easy process.

Leasing also provides flexibility when it comes to upgrading technology. At the end of a lease term, you can easily switch to newer, more advanced equipment without dealing with the hassle of selling or discarding outdated items. This is particularly useful in industries where technology evolves quickly.

Another advantage is that repair and maintenance responsibilities may be able to be placed into the contract, reducing risks for your business. Additionally, leasing could have favourable tax treatments for your business so ensure you review with your accountant.

However, leasing isn’t without its downsides. Over time, leasing can cost more than buying the equipment outright due to interest and fees. For instance, leasing a $4,000 computer for three years at $40/month per $1,000 totals $5,760, far exceeding the original purchase price. Leasing also comes with restrictions on equipment use, and since you don’t own the equipment, there’s no opportunity to build equity or resale value until the end of term.

Buying: Advantages and Disadvantages

Purchasing equipment has its own set of benefits. The most obvious is ownership, which gives you full control over how the equipment is used, altered, or maintained.

Another major advantage is the potential for long-term savings. While the initial cost of buying equipment is higher, you avoid ongoing lease payments and interest charges, making it a more economical choice for assets with a long lifespan.

Ownership also offers tax benefits through depreciation. Please review with your accountant.

On the flip side, buying requires a significant upfront investment, which could strain your cash flow and limit funds for other business needs. There’s also the risk of obsolescence – equipment can quickly lose its value as newer models become available. Plus, as the owner, you’re fully responsible for all maintenance and repair costs. If you are planning on using a bank loan to buy, the process could also take weeks instead of hours which means in case of a breakdown or you need equipment right away for a job; timeline becomes a factor.

Pros and Cons Comparison Table

How to Choose Based on Your Business Needs

Deciding whether to lease or buy equipment depends on your industry, growth plans, and financial situation. Here’s how these factors can guide your choice.

Why Choose Jocova Financial

Small businesses in Canada often require flexible financing solutions, and that’s where Jocova Financial steps in. They provide customized payment plans designed to fit your cash flow and business goals.

Jocova Financial offers financing for both new and used equipment, covering everything from heavy machinery to cutting-edge technology. Their leasing programs feature competitive rates and terms that help you preserve working capital. This is particularly helpful for businesses looking to avoid large upfront costs.

If purchasing is a better fit for your business, Jocova Financial’s equipment financing options provide the capital you need without draining your cash reserves. Ownership comes with advantages like depreciation deductions, and their manageable monthly payment plans help maintain healthy cash flow.

For even more options, Jocova Financial works with dealers and manufacturers to offer financing programs that often include better rates and terms than traditional bank loans. With a strong understanding of Canadian business regulations and tax rules, they can help you structure financing to maximize benefits.

To figure out the best option for your business, it’s always a good idea to consult with your financial and tax advisors. Jocova Financial is there to help you make the choice that works best for your unique needs.

Making the Right Choice for Your Business

Deciding whether to lease or buy equipment boils down to understanding your business’s specific needs and aligning the choice with your financial objectives. Start by assessing how the equipment fits into your broader business strategy and how it can improve efficiency.

Your cash flow is a critical factor in this decision. If your cash flow is strong, buying equipment may be the better option since it often costs less over the asset’s lifetime. On the other hand, if cash flow is tight or unpredictable, leasing could be a smarter move. Leasing avoids a hefty upfront payment and spreads expenses into manageable monthly instalments.

“In most cases, it’s cheaper to buy up front than leasing to own. But if you’re in an unstable or fast-growing business, leasing may put less strain on your cash flow.”

Next, think about your ability to handle ongoing responsibilities like maintenance, repairs, upgrades, and training. If your team is prepared to manage these, ownership might be the way to go. If not, leasing – especially with maintenance services included – can be a more practical option.

The pace of technological change in your industry is another key consideration. If the equipment you’re looking at becomes outdated quickly, leasing offers the flexibility to upgrade regularly. For machinery with a longer useful life, purchasing can provide better returns and build asset value over time.

Once you’ve clarified your priorities, it’s time to compare your options. Look at purchase prices, down payments, lease terms, end-of-lease purchase costs, tax implications, insurance, financing options, and ongoing maintenance expenses. Don’t overlook used or refurbished equipment, as these can offer substantial savings.

To make an informed choice, consult professionals like your accountant, banker, or insurance provider. They can help you understand the financial impact of each option and structure financing to maximize tax benefits while aligning with your long-term goals.

Jocova Financial specializes in helping Canadian small businesses navigate these decisions. Their equipment financing programs are designed to preserve working capital while offering competitive rates and flexible terms. Whether you choose to lease or buy, Jocova Financial provides tailored solutions to help you acquire the tools you need for growth.

Ultimately, the decision comes down to integrating all costs into your cash flow projections. Factor in both the expenses and the potential revenue or savings the equipment will generate. This thorough analysis will help you determine which option truly aligns with your business’s goals.

FAQs

What should small businesses consider when choosing to lease or buy equipment?

When deciding whether to lease or buy equipment, small businesses need to weigh their cash flow, budget, and operational requirements. Leasing can be a great option for businesses with limited upfront funds since it usually requires lower initial costs and offers predictable monthly payments. On the flip side, buying equipment might save money over time, especially when it comes to assets that have a long lifespan.

You’ll also want to think about the expected lifespan of the equipment, how often upgrades will be needed, and the tax implications. Leasing can offer flexibility and may come with tax benefits, while buying gives you full ownership and could lead to long-term savings. Ultimately, aligning your choice with your business’s growth plans and financial objectives will help you decide which route best supports your operations.

How does the speed of technological advancements affect whether you should lease or buy equipment?

The pace at which technology evolves in your industry is a major factor when deciding whether to lease or buy equipment. In industries where tools and machinery quickly become outdated, leasing often stands out as the smarter option. It gives you the flexibility to upgrade regularly, so you’re always equipped with the latest technology – without the hassle of dealing with resale or disposal.

However, if technological changes in your field are more gradual, buying equipment could be the more economical choice. Ownership can lead to long-term savings, especially when the equipment stays relevant for years. Weigh your business’s operational needs against the speed of technological progress in your industry to determine the most practical path forward.

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So, Bill-C19 says that if a business buys something like a cool machine or equipment in 2023, they can save a whole bunch of money on their taxes – like, up to 100%! That’s a big deal because it means they can use that money for other important things.

Imagine your friend has a construction company, and if they buy new toys (equipment) this year, they can save all the money they spent on that equipment when they pay their taxes. How cool is that?

Now, the Canadian House of Commons made this rule, and it says that even if a business wants to buy something super fancy that costs up to $1.5 million, they can still save all that money on their taxes. It’s like a giant discount!

But here’s the catch – they have to buy and start using the new equipment in 2023. So, there is a sense of urgency to acquire the equipment and businesses can use equipment financing options to get into this equipment fast.

And guess what? Even the tiniest little business, like a lemonade stand or someone selling cookies, can use this special rule. It’s not just for big businesses – everyone can join in on the fun!

Now, why is this so important? Well, this year, with prices going up and interest rates doing their thing, it’s like playing a game where you can save a lot of money by simply buying equipment. Businesses can use this trick to make their money situation better for this year.

Here’s another fun fact: If a business wants to buy equipment but doesn’t have all the money right now, they can still use this special rule simply by employing the benefits of equipment financing. It’s like saying, “I’ll pay for the toys later, but I still get to save money on my taxes now!” It’s like getting a bonus.

And always, always, if someone has questions about these rules, they should talk to their money expert – that’s someone like your bookkeeper or accountant or even a lawyer. They know all the secrets about money and can help businesses in the game of saving money the right way.

So, there you have it, the magical Bill-C19 is helping businesses save money and have more fun with their toys!

Read More Here

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In the fast-paced world of business, downtime and insurance claims can wreak havoc on your bottom line, causing unnecessary stress and draining your finances. However, the consequences go far beyond mere monetary losses. A potential theft could jeopardize your entire operation, impeding your ability to cater to your valued clientele.

With KYCS, you gain more than just an ordinary insurance policy; you gain peace of mind. In the unfortunate event of a trailer or equipment theft, rest assured that we possess the power to pinpoint their exact location. The swift and efficient recovery process ensures that you can promptly retrieve everything you need to get back on track and resume your crucial tasks on the job site.

Here are some of the benefits to the Theft Recovery System
• No Monthly Fees –includes 4 years of service.
• Virtually undetectable by thieves/frequency scanners.
• KYCS Locate device shuts down and does not transmit
• any signals until ready to send the next update at
• pre-determined interval time.
• Proprietary firmware and components allow for
• extended battery life and reduced data transmission.
• Simple installation, no wiring (self-powered), high powered
• magnets or 3M adhesive.
• Does not affect manufacturers warranty (no OBD plugin.)
• Weatherproof industrial housing.
• Does not have major flaw like other GPS Tracking devices
• which are easily disabled or detected – Remove fuse,
• disconnect antenna, or Found with RF Scanner.

You’ve invested valuable resources into your assets, and now it’s time to fortify that investment. Don’t leave anything to chance. Choose Jocova and KYCS to provide comprehensive protection for your assets, safeguarding your business and securing your future success.

Contact a member of the Jocova Team for more information and to get your unit! Or email us at info @jocovafinancial.com

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As the winter and snow removal season approaches, it is time to review any new and existing contracts and jobs that will need to be serviced this season and what equipment you have available to do the work.

Five Overlooked Things You Should Know Before Signing an Equipment Lease

For snow equipment considerations, it is important to ask yourself some key questions:

1. What equipment will be required by my business in this up and coming season?
2. How will the equipment allow my business to not only do the job, but do it better and more effectively & efficiently, and deliver more value then my competition?
3. What will the return on investment be on the equipment such doing more in less time, additional revenue, eliminate breakdowns, additional contracts, etc.?
4. How will my customers benefit?
5. What kind of services will be performed and how often?
6. How will I pay for the equipment?

Get the Best Equipment Financing Options Now

When it comes to having the right equipment to meet the demands of each snow removal season, you have a lot to consider. You want to ensure you have the proper equipment to perform the work required by your clients and contracts. This process requires an analysis and understanding of your operation and the customers’ properties you maintain. Once you have decided on the right equipment, the next key question is how should you finance that equipment. There are several options available such as cash purchase, bank loans, and lines of credit, but none are as business friendly as equipment leasing because of the financial benefits.

ProTip: Ensure you have top performing equipment to avoid breakdowns in the middle of the night.

Avoid the upfront cash outlay and make easy monthly payments for the equipment as you collect revenue from your contracts and work. Don’t forget to consider seasonal payment options which can match your lease payments with your revenue streams in the winter months and leave you with little or no payments in the off season.

Additionally, equipment financing increases your buying power so you can get the right equipment that will serve you as you scale up your operation versus having to acquire equipment that fits into a cash purchase or capital budget over a longer period of time.

Relying entirely on paying cash instead of leasing, may not only limit your flexibility on purchasing certain equipment you need to operate effectively, it may also restrict you from bidding on certain contracts because you don’t have the equipment needed or the means to purchase the equipment to meet the requirements of the contract.

 ProTip: Save your cash for breakdowns and repairs and/or salt & sand purchases. Winter can be very unpredictable and you want to ensure you have the cash flow to keep up. Equipment leasing allows you to hang on to your cash and still get the equipment you need.

Other key benefits of leasing to consider include: cash flow management, payments matched to revenue, keeps your cash in the bank, overcomes budget issues, and ensures you have the best equipment for the job.

Commonly leased or financed snow equipment include: plows, blades, salters, spreaders, tractors, trucks, ATV’s, Side-by-sides, skidsteers, snowblowers attachments, melters, graders, loaders, trailers, excavator, and more…

Highlights of Leasing Snow Equipment:

• Use equipment financing to get the best equipment for the job
• Secure contracts that have certain equipment requirements
• Save you cash for unexpected expenses such as repairs
• Pay easy monthly payments by matching cash flow to lease re-payment
• Customize your lease structure for seasonal payments only

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Safety:

First and foremost safety is of the highest concern for business owners. Not only for yourself and employees, but depending on the business, the safety of your customers. When looking to finance or lease new equipment, make sure to compare the safety features of multiple models and that they are at least the same, or better, than what you currently have including the proper certifications if applicable.

Reliability:

Will the new machine or piece of equipment allow you to meet deadlines? If you are dealing with repairs, machines can be down for days at a time, costing you money, time, and your reputation. Clients will not want to work with a company that keeps missing deadlines. Working with new equipment allows you to have peace of mind, knowing that breakdowns are less likely and removes unnecessary stress and allows you to focus on the job and growing your business.

Perception:

Clients tend to feel better seeing new machines on a job site rather than rickety old ones. Trust is a huge factor in the consumer/business owner relationship. A good way to start earning that trust is by having newer equipment.

Not only that, industries are always looking to create newer, safer products that help get the job done faster – outdated equipment may be holding you back from taking on additional opportunities to increase your revenue because each job takes longer than it needs to.

Necessity:

Sometimes getting a brand new machine straight from the factory isn’t the best choice for your business. A new coat of paint and basic maintenance can go a long way in maintaining a professional appearance and functionality. Make sure you do need the new equipment before committing to purchasing and do your research before leasing or buying. Some manufacturers are content with offering high initial quality with no regard for longevity, anticipating you will be back in a couple years for a trade in.

If new equipment is in your future, be sure to explore equipment financing and equipment leasing options as a means to easily acquire the equipment on low monthly payments.

Benefits of equipment financing and Leasing – Click for More Information

Apply Online or Get Pre-Approved – Click Here

Have more questions on how Jocova Financial and our financing solutions can help your business, email us or call today.

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What to Look for when Buying Used Scissor Lifts

• You get what you pay for with a return warranty
• Check maintenance records and
• Check the equipment for changes or modifications that can affect performance or safety
• Check the hour and odometer meters to know how much use it has had and how it compares to similar units in that price range and model year
• Meets your job requirements for performance and size, load
• Power Unit – Propane, Electric, Diesel

Best Places to find Used Scissor Lifts

Be sure to do your homework when it comes to evaluating and looking for used scissor lifts. Here are some places to search for, research, and purchase used scissor lifts:

• EquipmentPatrol
• Marketbook
• Rental Houses like United Rentals, Stephenson’s Rental, Cooper Equipment, etc.
• Richie Bros. Auctioneers

Benefits to Scissor Lifts Leasing and Financing

Equipment financing and leasing is used by many businesses to acquire the equipment they need to run their day-today operations because of the many benefits it affords business owners. Here are some of highlights to equipment financing for your business:

Low Monthly Payments

By leasing your scissor lift, it allows you to pay easy monthly payments while you earn revenue from the use of the equipment right away.

Improved Cash Flow Management

Equipment financing improves your cash flow as there is little to no upfront costs to obtaining equipment. This makes it easy to manage your monthly cash position and maintain a profit. Lease payments can also be structured as monthly, quarterly, bi-annual, or seasonal to further align your cash flow with the peaks and valleys of your business.

Pay for the Equipment as you Profit from Its Use

When you lease your scissor lift, you put the equipment to work for your business making money. In almost every circumstance, the use of the leased equipment will generate enough revenue to cover off the lease payment early in the month.

Preserves Capital & Keeps Your Cash in the Bank

Equipment leasing allows you to pay for your equipment on a predetermined schedule; typically, monthly, rather than depleting your accounts of cash for an upfront purchase.

Overcome Budget Limitations

Businesses are continuously working within budgetary constraints. Leasing equipment, allows your business to purchase more equipment or better-quality equipment than otherwise would be affordable if you were to pay cash.

What Finance Company Should You be Considering for Scissor Lifts Leasing and Financing Options:

• Jocova Financial provides considerable amount of scissor lifts leasing and equipment financing options for small business.
• Review leaseworld.org for a directory of equipment financing companies and information.

Summary

Here is a quick checklist of what to consider when purchasing a used scissor lift:

1. Explore options from various dealers, sellers, and online resources
2. Get Pre-Approved for equipment financing
3. Inspect the equipment for condition, wear, maintenance
4. Ensure the equipment will do not only your current jobs but future aspirations
5. Make an offer

EquipmentPatrol – Equipment Selling & Buying

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Here is a summary of some of the key benefits as to why businesses are gravitating towards equipment leasing as their main financing option when obtaining equipment.

1. Low Monthly Payments

By leasing your equipment, it allows you to pay affordable monthly payments while you earn revenue from the use of the equipment right away. This increases your return on investment and allows you to easily meet your monthly budgetary goals and obligations.

2. Improved Cash Flow Management

Equipment leasing improves cash flow as there is little or no upfront costs to obtaining equipment and makes it easy to manage your monthly cash position and maintain a profit.

Lease payments can also be structured as quarterly, bi-annually, or seasonally to further align your cash flow with the peaks and valleys of your business.

Additionally, newly leased equipment will help with efficiency and labour costs, thus reducing overhead expenses while increasing productivity. This efficiency and increased output will offset any monthly costs attributed to a new equipment lease while still realizing a strong revenue stream.

3. Pay for the Equipment as you Profit from Its Use

When you lease equipment, you put the equipment to work for your business making money. In almost every circumstance, the use of the leased equipment will generate enough revenue to cover off the lease payment early in the month. This means that the equipment is turning a profit almost immediately and providing a realized return on investment.

Apply Now for the Best Equipment Financing Options

4. Preserves Capital & Keeps Your Cash in the Bank

Equipment leasing allows you to pay for your equipment on a predetermined schedule, typically monthly, rather than depleting your accounts of cash for an upfront purchase. By leasing equipment, your money stays in your business for operating expenses, payroll, expansion, business opportunities, and emergencies.

5. Retain Borrowing Power

By leasing equipment through your business, you do not affect your future or current ability to borrow from your bank and other institutions. Leasing also allows you to conserve your lines of credit and loans for other potential expenditures that may arise.

Get the Best Equipment Financing Rates – Click Here to Get Started.

6. Overcome Budget Limitations

Businesses are constantly working within budgetary constraints. By leasing equipment, it allows your business to purchase more equipment or better quality equipment then otherwise would be affordable if you were to pay cash. This means that accessories and options that would further enhance efficiency and performance can now be rolled into the equipment package and one monthly payment. It also allows your business to get the larger or more advanced unit, giving you room for your business to grow even more.

7. Limited Security & Disclosure

Leasing maintains only a security interest in the equipment on lease. Banks typically take security interest on all company assets and require detailed financial disclosure of business and personal information. Personal Guarantees for banks is a must. This makes leasing a much simpler and convenient means to financing equipment.

8. Avoid Using Obsolete Equipment

Equipment leasing ensures your business has the best equipment available in your operation. This is of particular value to technology, manufacturing, and medical equipment as well as high hour use equipment that is subject to wear and tear.

Leasing allows you to stay up-to-date and get the latest equipment you need with a simple monthly payment. By having the newest equipment, you will ensure your business can be more productive and competitive by harnessing the efficiency of technology & engineering advancements. Leasing also allows you to match the repayment term with the optimum useful life of the equipment and once the term is up, you can easily upgrade your equipment again.

Five Overlooked Things You Should Know Before Signing and Equipment Lease

9. Ability to Upgrade or Trade-In Equipment at Any Time

Equipment leasing makes it easy to trade-in and upgrade your equipment any time throughout your lease agreement or at the end of the term. This gives your business the flexibly to adapt to unexpected changes. Even after your lease has terminated and you own the equipment, you can still trade-in the equipment and upgrade to a newer unit.

10. Taxable Benefits

Lease payments may have taxable benefits for your business. Check with your accountant on how a lease would be treated in your business operation and how it will benefit your business.

ProTip: The key benefits for most small businesses include getting equipment without a large cash outlay, simple monthly payments, and equipment ownership at the end of the term. Ask your equipment supplier for leasing options or Apply Online.

EquipmentPatrol – Equipment Selling & Buying

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There are three major categories that you need to be prepared to address as you head into spring and next winter. Those categories are marketing, staff and equipment. Maybe you have never considered a marketing strategy or specific training for your staff however, these are vitally important in todays ever changing business landscape. Customers are doing more research than ever and are looking for a place that they feel comfortable with. Unfortunately garages and mechanics in general have developed a reputation as scam artists, however unwarranted that is potentially what local business owners are up against. So, how do we combat that mindset? By being the most knowledgeable, the fastest and best shop in town. How do you give your customers confidence in your ability?

There is no trick to it, answer their questions honestly, recommend products that best suit their needs, rather than the most expensive option. A customer is more likely to return to a store where they did not feel taken advantage of. In the long run, one customer purchasing multiple sets of tires from you over a life time can lead to good recommendations to friends and family which is worth a lot more than one expensive set of tires and never seeing them again. So what Questions Are Your Customers Asking? Here is a common list of questions asked by people looking at a new set of tires or trying to avoid buying a new set. Be prepared to answer these questions knowledgeably and honestly and you will have yourself a loyal new regular.

1. What month should you change to winter tires?
2. Can you drive with winter tires all year round?
3. Are all season tires good for winter?
4. Should I get winter tires or all season?
5. Best all season tires for snow?
6. What makes a good summer, winter, all season tire

Let’s look at what to do before a customer even steps a foot in your shop so that when they do, they will know your Garage was the right choice.

Marketing

If you’re a small shop it can be really difficult to break through all the buzz creating by large corporations through their TV commercials and radio ads. One avenue to explore that offers fairly even footing is online marketing. Ask your regulars to leave a review online or consider a referral bonus for them. Make sure you get your name out there on Facebook and Google as the rates for local branding ads are relatively low compared to traditional media. It’s never too late or too early to start a branding campaign, but you should also budget for specific sales and specials and time them wisely. Taking out ads in a local newspaper is still an effective way of generating business from older customers as well who may not be as trusting of things they see online. Of course the best way to get repeat customers and referrals is to do a great job for a reasonable price.

Staff

The first snowfall can be absolutely hectic for a tire shop. Having a lightning fast and qualified team can be the difference between someone choosing your shop specifically, or just going anywhere that can do the job. The last thing you want at this time of year is to not have all hands on deck, or someone complaining about loose lug nuts after they visited. Try to discourage multiple employees taking time off until after the busy season, or offer incentives for whoever does the most tires in a giving time period.

August and September would be a good time to have some light hearted challenges around the shop. See who can get a set of tires changed the fastest, and maybe even have a leader board posted in the garage with a reward for best time at the end of the week. This will get your crew in the mindset of working quickly but will also provide valuable training experience for newer employees while simultaneously getting your more experienced workers a chance to tune up and show off their skill.

Equipment

No matter how experienced your employees are, they are only as good as their equipment. Make sure you get all of your gear serviced before it needs it. Get the staff to double check all hoses are free of leaks or cracks, the guns are all functioning properly and hoists are operating at full strength. Sometimes as a business owner it is tempting to make do until after the rush of customers and influx of cash to upgrade or repair equipment. A person is more likely to be a repeat customer if they have had a painless experience. New equipment is a sign to consumers that a business is doing well and will make them want to return, whereas delays and a rundown looking garage can make people opt for a large corporate run shop instead. If things are a little tight or you’re just looking for an upgrade no piece of equipment is too big or too small for Jocova to handle with equipment financing.

Here are some examples of what we can finance for you

– Air compressor

– Phone System

– Computer

– Lifts

– Welding Equipment

– Tire Changers

– Wheel Balancer

– Security System

– Diagnostic Equipment

– Alignment Machine

• Paint Booths

We can cover all of these and more with Equipment financing that allows you to acquire the equipment you need with easy monthly payments and even seasonal payment options to match cash flows.

EquipmentPatrol – Equipment Selling & Buying

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Jocova Financial provides equipment dealers with the ability to engage digital shoppers and turn them into showroom customers by providing a seamless online financing tool between ‘you’ the dealer, your customer, and us, your equipment financing & leasing partner to accept customer credit applications through your own custom branded web page.

An Application for Financing is like a Commitment to Buy Equipment

Jocova’s online credit application system is for equipment dealers to confidently offer equipment financing & leasing options for commercial customers and businesses looking to acquire equipment. The system can be used as an integral part of your web retailing experience via a custom branded dealer financing application web page. It offers dealers the flexibility to use the system seamlessly with their current website as well as provide direct links to customers to online, by email, marketing campaigns and material, social media, newsletters, and more.

Why Use Dealer Web Financing Application Pages

• An application for financing is like a commitment to buy equipment
• People live and buy online; including equipment financing
• Today’s consumer not only prefers online transactions, they expect it
• Ease of equipment acquisition can be preferred to lowest price
• Serious shoppers want the ability to act on equipment they want immediately; Apply Now
• Equipment buyers’ habits and behaviours continue to migrate to digital experiences
• Dealers are finding a trend towards people applying for credit online then in-store
• Accelerate sales by engaging customers and moving them through the sales cycle faster and sooner
• Online to In-Store Strategy – “Click-to-Mortar”
• Generate more leads and sales with a financing Call to Action

Click Here to Get your Free Dealer Web Application Page

https://youtu.be/Sq1LV8Av2DU

LeaseNote by Jocova Financial

Why Customers Expect Online Financing Options

Small business owners are going online for the best equipment financing services for many of the same reasons they already use other online services for their business like accounting (i.e. Quickbooks), marketing automation (i.e. Active Campaign), Small Business Financial Management (i.e. TransactWell), and sales CRM (i.e. Salesforce).

• Business owners want quick and effortless access to the best equipment financing options with the least amount of input and when they want to purchase
• Convenience and time savings are one of the biggest reasons business owners first turn online
• Applying for credit can be a self-preserving means to capital because business owners can be more open when completing their applications and not having to be self-conscience about credit woes or financial details if completing in person at the dealer level.
• Access points to credit and capital; mobile, web, dealer portals
• Online convenience versus offline burden
• Privacy – only those that need to see the information have access to it

Generate More Leads and Sales with a Financing Call to Action, 24/7

How To Get Your Dealer Custom Finance Page For Free

Step 1

Register to Get your Free Custom Financing Link

Sign-Up to get your Free Custom Financing Link that you can use to offer equipment financing & leasing options directly from your website. Simply enter a few details about your equipment dealership and we build it all for you for free.

Click Here to Get your Free Dealer Web Application Page

Step 2

Connect your Website & Sales Tools to Your Financing Link

Connect your new Equipment Financing Web Application page to your current website by a simple URL. Link quotes, emails, and any equipment sales & promotional material to your application link. Making this link easily accessible will make the equipment financing process feel smooth and completely integrated in your business website. Simply use they URL link provided in the setup process.

 Step 3

Promote More Sales with Higher Customer Engagement

Promote your ability to offer equipment financing online through your website, social media channels, print ads and more. Promoting your financing service as a value-add could easily increase sales and market share by offering a convenient way for customers to initiate the purchasing of equipment 24 hours a day online.

Click Here to Get your Free Dealer Web Application Page

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