Versa CapitalProducts
For businesses in Quebec that finance equipment. Two forms: a capital lease (lease-to-own) and an operating lease with no purchase guarantee.
The product
Leasing is a contract that lets a business use equipment in exchange for payments to a lessor. Versa Capital prepares the file and presents it to its financial partners.
The catalogue already has two forms: a capital lease (lease-to-own) and an operating lease with no purchase guarantee. The choice follows the project, the business profile, liquidity, how long the asset will be held, and the long-term objectives. These contracts are used in particular for heavy machinery, trucks and trailers and agricultural equipment.
The two forms
The contract is structured so the equipment can be acquired at the end of the term. The terms of that acquisition are the ones written in the contract. This form is already in the catalogue, alongside financed purchase and structures with a residual value.
The contract covers the use of the equipment during the term. It includes no purchase guarantee: the business has no commitment to buy the asset at the end. This form is already in the Versa Capital catalogue.
Comparison
A term loan to purchase, also offered by Versa Capital, finances the purchase of the equipment. The business is the buyer and repays a loan.
Leasing remains a contract with a lessor. In a capital lease, the contract leads toward acquisition. In an operating lease with no purchase guarantee, no purchase is guaranteed.
The accounting and tax treatment depends on the clauses of the contract and on the situation of the business. A contract may be recorded as an asset and an obligation, or as an expense, depending on the applicable framework. Versa Capital does not give tax advice. An accountant or a tax advisor must confirm the treatment before signing.
Who it is for
Leasing is for businesses that need equipment for their operations, in the sectors Versa Capital already finances.
Our approach
Grasp the business, its operations, its industry, its financial position and its ambitions.
Build a financing approach suited to the project, the profile and the client objectives.
Prepare the file and present it to the appropriate financial partners, with its strengths made clear.
Compare the options and make their effects easy to understand, so the decision is an informed one.
Coordinate the documentation, the negotiation, the signing and the funding, then remain available after the transaction.
More than 20 financial partners. One point of contact to compare and negotiate your options.
FAQ
Equipment leasing is a contract that lets a business use equipment in exchange for payments to a lessor. Versa Capital presents two forms: a capital lease (lease-to-own) and an operating lease with no purchase guarantee.
A capital lease is structured so the equipment can be acquired at the end of the term. An operating lease with no purchase guarantee covers the use of the equipment during the contract, with no commitment to buy it at the end.
A term loan to purchase is used to buy the equipment: the business is the buyer and repays a loan. Leasing is a contract with a lessor. What follows depends on the form chosen, capital lease or operating lease with no purchase guarantee.
It is for businesses that need equipment for their operations. Versa Capital already finances construction, agriculture, forestry, medical, transportation, material handling, industrial and food service.
Versa Capital understands the project, structures the financing, presents it to its partners, compares the options and stays with the file through funding. The business has access to more than 20 financial partners, with one point of contact.
The treatment depends on the clauses of the contract and on the situation of the business. A contract may be recorded as an asset and an obligation, or as an expense, depending on the applicable framework. Versa Capital does not give tax advice. An accountant or a tax advisor must confirm the treatment before signing.
Let us talk about your project
Every project deserves a considered structure.
Describe your financing need. An advisor at Versa Capital will contact you.
