As part of our commitment to providing value for money we offer various leasing packages with the following benefits:
ACCELERATE THE RETURN ON INVESTMENT
Each and every asset acquired for your business demands a pay-back. Deferring the acquisition costs by leasing new equipment, can provide you with an immediate return on that investment.
PRESERVE WORKING CAPITAL – THINK REVENUE
Maintaining liquidity (i.e. available cash), is critical to the health of a business and is fully supported by the practise of leasing, which removes the need to tie up valuable cash resources in a rapidly depreciating asset; freeing up capital that may certainly be better invested, elsewhere in your business. Leasing allows you to treat the acquisition of new equipment as a revenue, rather than a capital expense.
LEASING IS HIGHLY TAX EFFICIENT
Under a leasing agreement the total amount of all rentals payable in each Tax year, can be fully off-set against Corporation Tax, over the life of the agreement. Only leasing enables you to write-off the full purchase price, against Tax, linked to the expected useful working life of the equipment – which may be as short as three years, for high tech products.
If you compare this for tax purposes, to outright purchase (which provides only 25% Writing Down Allowances each year, on a Reducing Balance basis) it takes seven years to write off 90% of the full purchase price, against Tax! (This is true, even if your business qualifies for a 40% First Year Allowance under the Government’s current S.M.E Scheme).
It is perhaps not surprising then, that over 30% of all capital equipment purchased in the UK, is now leased.
EASY TO UPGRADE
The valuable working life of many business assets can be hard to predict. Given the pace of technological advancements, any finance arrangement must be flexible enough to accommodate these developments. Our leasing companies therefore expect and anticipate the need to provide you with replacement or additional equipment and we will gladly quote the rental for a new Agreement, which will automatically extinguish the liabilities under your existing arrangement.
Unlike many other forms of finance, where interest rates fluctuate, leasing rentals are fixed for the duration of the agreement. This allows you to budget in complete confidence that costs will not escalate.
ANOTHER LINE OF CREDIT
Leasing facilities are dedicated to the equipment concerned and no other form of security is normally required. Our leasing facilities will not affect current borrowing capabilities, leaving your existing sources of finance, conveniently undisturbed.