- No Large Capital Outlay
- With only a small advance rental required, the capital cost of equipment is spread over 3, 4, or 5 years. Today’s capital expenditure is financed out of future earnings
- Protected Cash flow
- Leasing is of a fixed term nature with fixed payments agreed in advance thus enabling efficient budgeting and a healthy cash flow. In addition, the VAT element is not payable up front but is spread over the period of the agreement.
- Increased Tax Benefits – lease payments are fully tax deductible
- If you borrow money from banks, you will obviously be required to repay both principal and interest. But it is ONLY interest and not the principal that can be fully deducted for tax purposes. With a lease however, the total monthly payment (which includes a combination of principal and interest) can be completely deducted as a trading expense, therefore optimising Tax Efficient Expenditure.
- Does Not Affect Your Bank Lines
- Lease Finance is a tax efficient addition to your existing bank facilities. You can write leases without having any adverse effect on your traditional borrowing capabilities.
- Cash Is Not Tied up in Rapidly Wasting Assets
Capital equipment often has a short life and can become obsolete. So it does not make sense to tie up scarce cash in rapidly wasting assets. Under a lease, the leasing company will fund the equipment, leaving you free to allocate your cash resources elsewhere in the business
- No Personal Security Required
In short, you do not have to pledge your house or any other assets in order to have a lease proposal accepted – it is the equipment itself which provides its own security. For many people, this is the reason enough to lease
With our rental option, you can offset 100% of the cost against tax.
We offer our equipment on a 3, 4, or 5 year fixed term rent. Payments are made quarterly, and collected by direct debit or invoice.
We also provide two different service plans:
- Two service visits per annum
- All-inclusive agreement, covering parts, labour, call out, in addition to two service visits per annum