Prime Rates to Drop to 5.45%, Why Now Is the Best Time to Lease Equipment.

December 11th 2024

The Bank of Canada just brought some holiday cheer with a generous 0.50% rate cut—lowering its policy rate from 3.75% to 3.25% in time for the season of giving!

(A typical adjustment is usually a modest 0.25%.)

As a result, most bank prime rates to drop to 5.45% (from 5.95%), excluding any lender-specific discounts.

This is a golden opportunity for businesses to secure lower-cost financing and position themselves for growth. Stay tuned for the next rate announcement on January 29, 2024!

In today’s economic climate, businesses across Canada are experiencing a unique opportunity. With interest rates on the decline, now is the perfect time to lease equipment and fuel the growth of your operations. Whether you’re a trucking professional looking to expand your fleet, a construction company upgrading machinery, or a small business in need of specialized tools, lower interest rates can make your goals more attainable than ever.

Reduced Costs: Leasing Made Affordable

When interest rates drop, the cost of financing decreases, directly impacting lease payments. This means you can secure the equipment you need at a lower monthly cost, preserving your cash flow for other critical business expenses. By taking advantage of these reduced costs, you’ll be in a better position to:

- Invest in additional equipment to expand operations.

- Manage seasonal cash flow fluctuations more effectively.

- Keep more capital on hand for unexpected expenses or growth opportunities.

Expand Without Sacrificing Cash Flow

Leasing is already a smart financial strategy for preserving capital, and falling interest rates amplify this benefit. Instead of tying up a significant amount of money in a large upfront purchase, leasing allows you to:

- Spread payments over manageable terms.

- Align payments with revenue generation cycles, especially if seasonal payment plans are available.

- Focus on scaling your business without depleting reserves.

For example, trucking companies can grow their fleets by acquiring new trailers or upgrading to more efficient trucks, while construction firms can secure high-performance machinery to tackle larger contracts.

Benefit from Full Tax Write-Offs

Equipment leases often come with significant tax advantages, such as being fully deductible as a business expense. When combined with lower interest rates, the cost savings are even more substantial. This can result in a lower net effective rate for your lease, making it an even more attractive option compared to traditional loans or outright purchases.

Timely Upgrades and Competitive Advantage

Declining interest rates present a window of opportunity to upgrade outdated equipment. Newer, more efficient machinery not only improves productivity but also helps businesses stay competitive in their industries.

By leasing now, you can:

- Gain access to state-of-the-art equipment.

- Meet higher standards of efficiency and environmental compliance.

- Position your business as a leader in your field.

Flexibility for New and Established Businesses

Whether you’re a startup or a seasoned company, falling rates make leasing more accessible. Flexible options like lease-to-own and early buyout terms allow businesses to customize financing to their needs. For startups, this means getting the equipment necessary to launch operations. For established companies, it’s an opportunity to scale up without the financial strain.

Act Now: Seize the Opportunity

Interest rates won’t stay low forever, and waiting too long could mean missing out on this cost-saving opportunity. By leasing equipment now, you can lock in lower rates, minimize expenses, and position your business for sustained growth.

At EquipEASE, we specialize in flexible, tailored leasing solutions that empower businesses to thrive. From trucks and trailers to heavy machinery, we’re here to help you secure the equipment you need without breaking the bank.

Ready to get started? Contact us today to explore how we can help you capitalize on this unique economic environment and achieve your business goals.

- Phone:1-844-250-3273

- Email: kyle@equipease.ca

- Website: equipease.ca