What is Real Estate Leasing?
Real Estate Leasing is a financial product your company can use to acquire or develop warehouses, offices, retail spaces, industrial plants, or any sort of real estate to be used for commercial or industrial development.
The lease structure involves acquiring a building and then leasing it out to your company in exchange for lease payments for a determined period. When the contract ends, you can acquire the property by exercising a purchase option.
The primary benefits involve cash flow, tax savings and financial structure in virtue of the following:
The lease payments are adaptable to your business' cash flow needs.
The full lease payment is considered to be an expense for income tax purposes, representing a reduction in the financial cost of more than 50%.
Since the lease payment is considered to be an expense, it does not represent debt or a risk to assets so it leaves other sources of financing open to invest in the important areas in the company.
Features
Minimum project amount: $500,000.
Leasing term: Up to 10 years.
Payment Method: Periodic payments in advance or at the end of the payment period that may be reviewed every six months in relation to the variances in the Prime Rate.
Payment Types: Level payments or payments adaptable to the project needs or your business' cash flow.
Percentage to finance: Up to 80% of the property value based on an appraisal by the leasing company.
Any associated expenses, such as insurance, taxes, legal fees, appraisals, are paid by the lessee.
The real property must be 65% buildings.
For more information call 800-1-SCOTIA or visit us today in any of our branches!
