When we think of leasing and equipment financing we think of the private sector, with companies using lease strategies as an effective overall alternative strategy.
However many municipal, provincial and federal government entities employ equipment financing for a number of different reasons.
Many times municipalities finance in this method to avoid statutory debt obligations. The federal and provincial governments lease millions of dollars of computer technology every year. In many cases they could purchase the equipment outright through funding but they opt to lease due to the ability to avoid obsolescence and to allow uses to upgrade to newer generations of technology. The same goes now for other assets including fitness equipment. As governments struggle to reshuffle priorities they will finance more and more equipment, there seems to be no alternative. Here is Surrey BC we see the direct impact of this through massively underfunded school districts. The economic funding model from
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