Why Businesses Lease

 

No Large Upfront Costs – Most businesses earn revenue over time, but have to pay for equipment up front, in one go. Why pay out in one lump sum when with leasing you can pay a small amount every month/quarter? Businesses prefer to pay as they use!

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Cash – Cash is king and it makes sense to use it for expansion or critical business needs. Leasing for office technology preserves precious cash.

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Budget Management – Leasing ensures a fixed manageable payment irrespective of interest rate rises. The low monthly cost of rental is fixed at the onset enabling accurate budgeting.

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Preserve Credit Lines – We offer leasing from £500 upwards enabling you to preserve your existing bank lines and optimise your use of commercial credit sources.

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Technology Upgrades – Leasing allows the customer to take advantage of technology improvement at a time of their choosing and at a reasonable cost. By contrast a business that owns it’s IT equipment can only upgrade by reinvesting and disposing of the existing asset.

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Flexible Payment Levels – Businesses can choose the payment level that best suits, our options range from 1 to 5 years. So the customer can have the latest technology at a price they are comfortable with.

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100% Tax Allowable – Finance Lease rentals are 100% allowable against pre-tax profits. This means that the total cost of your purchase, both capital & interest, can be offset against tax during the lease period, with the leasing payments deducted as a trading expense.

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Example:

• Cost of Solution £5000

• 3 Year Finance Lease @ £157.50 per month

• Total Payable is £157.50 x 36 = £5670.00

• You pay £670.00 interest over 3 years

• Leasing is 100% tax deductible so assuming tax rate is 20%

• £5670.00 x 20% is £1,134.00

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The reduction in tax to be paid (£1,134.00) more than covers the interest charge (£670.00)