Leasing is one of the best ways of ensuring your
business always has the most up to date equipment. Amounts from
as little as £1000 can be funded. A wide range of equipment can
be financed, from computers and software, through shop fittings,
to plant and machinery. Let us know your need and we will find the
solution.
There are many providers. Our specialist broker
will find you a good deal. You don't pay the broker, he gets commission
from the leasing company he chooses. You only take the deal if you
like it. So you have nothing to lose by asking for a quote.
Leasing enables a user of equipment to benefit
from its use whilst paying for it. It enables the supplier to generate
more profitable sales.
Other benefits
Additional line of finance
Rentals are tax deductible
Payments spread over 3 to 5 years
Fixed interest rate, so you can budget exactly
VAT is spread over the life of the transaction
Does not use working capital
The supplier gets immediate payment in full,
so they may give you a better price
For & against leasing
Medium term debt at fixed rates
No need to make up front payments
Flexible repayment arrangements at the outset
- rental payments can be tailored to expected cash flows
Finance is outside bank overdraft arrangements.
Lease purchase (hire purchase)
Purchase of the asset is included in the price
of the last payment under the agreement.
Tax is allowable on interest element of rental,
with writing down allowances available on the capital element
The asset is included in the balance sheet.
What hire purchase costs
Fixed or floating rates
Repayment spread over 1-7 years or the life of
the asset.
Operating lease
This is off balance sheet finance
Many companies use it as contract hire for motor
vehicles
Otherwise, it is generally used by local authorities
or NHS Trusts
Sale and leaseback
Leasing can be used to refinance some existing
assets and so liberate cash for the business. This is useful when
assets are well written down in the balance sheet.
Leasing audit
We review existing lease, finance and contract
hire agreements to ensure that all potential savings are being taken
advantage of. Where outstanding balances are at least £1m,
we work on the basis of no savings no fee).
