Why Lease?

In essence, leasing is a method of funding that keeps money in your business rather than locked into depreciating assets. Instead of paying in full for any product or service upfront, leasing enables structured regular repayments to meet your cash flow and budgetary requirements over a time frame to suit you.

The key principle can be demonstrated by the example, that it’s the use of IT equipment in a business which produces benefits, not the ownership of the equipment. Leasing delivers that use, with the flexibility to structure payments that maximise customer returns over the life of the agreement. Other reasons are:

MAINTAINING CASH FLOW

Leasing means there’s no impact on existing credit lines so it makes any further borrowings easier to obtain.

FIXED PAYMENTS

The finance payments are fixed, from when the funds are released for the life of the agreement, negating any future interest rate rises and enabling tight budget controls. There is no requirement for large up front deposits that could also affect your cash flow.

TOTAL PROJECT FINANCE

100% of project costs can be covered, including any installation and training costs

TAX ADVANTAGES

Leasing is considered one of the most efficient ways to acquire new equipment as all rentals are 100% allowable against tax.

ENABLING LARGER PURCHASES

As leasing spreads the cost of any purchase over an agreed timescale it may enable you to purchase more than you initially thought, or to purchase more expensive equipment enabling you to future proof your business or improve profitability faster than anticipated.

SECURITY ONLY AGAINST ASSET

As any security taken is only against the asset purchased it leaves other business or personal assets unencumbered. It also avoids any fees associated with securing finance against property.

EXISTING CREDIT LINES UNAFFECTED

Any new agreements made are stand alone and do not affect any current credit facilities you may have in place. Leasing also means there is no negative impact on your cash flow, working capital of overdraft position.

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Leasing is a method of funding that keeps money in your business rather than locked into depreciating assets.

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