Most companies need equipment to deliver their products or services and keep their businesses moving – from everyday printers to specialist, niche equipment. Such items are often costly, requiring a considerable cash outlay which may prove to be problematic. Leasing offers a simple and cost-effective alternative to making an upfront cash purchase. Here’s why:
1/ Free up your cash flow: leasing agreements often require just a minimal deposit, or sometimes no deposit at all. Spreading equipment costs over three or five-year period through regular monthly payments makes the lease purchase of assets an affordable and logical option.
Your precious, hard-earned cash can then be allocated elsewhere – where it is most needed.
2/ Budget control: paying a fixed monthly amount over an agreed term makes it easier to control your finances and plan ahead.
3/ Boost your credit history: a strong credit history for your business can be established by making timely, regular, payments.
4/ Tax benefits: capital allowances on the equipment you lease can be claimed and interest on the finance payments is tax deductible.
If equipment is hired under an operating lease, you can also write off the total amount of your leasing agreement against corporation tax by using Operational Expenditure (OPEX).
5/Flexible leasing options: lease arrangements can allow you to fund the purchase of a wide range of essential business assets. They can include benefits such as servicing, allow you to make variable monthly payments or to even upgrade your equipment during the term of the lease and simply modify your payments or finance term.
This flexibility, enables your company to be flexible, dynamic and respond to changing business conditions.
This article provides general information to be used for your reference only and is not intended as a substitute for financial advice specifically directed at your business and taking account of the particularities of your situation.