Returnable Pack Leasing

When you have expendable packaging products that you use regularly. When you do not have a good trigger for purchasing on a product and it usually is a rush to get it in.

When our standard lead time is greater than 1 week.

Realizing the Advantages of Returnable Pack Leasing

• Conserve valuable working capital. Capital acquisitions reduce a company’s working capital. Lease financing allows working capital to be used for other purposes. You realize the best of both worlds.
• Ease of acquisition. Once you have decided on your returnable packaging solution that best suits the job, you simply decide on the payment stream that best suits your budget.
• Preserves your credit limits. Lease financing enables you to acquire needed returnable packaging without tying up other valuable credit lines.
• Ease of budgeting. When lease payments are fixed over the term of the lease, budgeting cash flow is made much easier.
• 100% financing. Lease financing provides for total financing. Hard and soft assets can be financed, providing you with a “total” solution.
• Term and payment flexibility. The term and frequency of payments can be tailored to your company’s own unique business requirements.
• Self-financing. Lease payments are often paid with dollars generated by the utilization of the leased equipment.
• Payment convenience. Another advantage of lease financing involves the direct-debit method of lease payments. Administering the account now becomes the responsibility of the leasing company.
• Tax advantages. While subject to the regulatory guidelines, lease payments may be tax deductible. A consultation with your accountant will determine the applicability and nature of tax deduction for each circumstance.

Note: Pine Valley Packaging Limited partners with CIT Financing

Typical lease / purchase example based on 8% interest rate

• Cost of returnable pack system – $250,000v
• Lease period – 3 years
• Purchase option – 10% after 3 years
• Interest rate (will fluctuate) – 8%
• Monthly lease rate – $7,169.55 plus applicable taxes