What is Leasing?
Asset finance or Leasing is a way of purchasing different types of equipment and machinery without having to pay the full cost immediately.
How does Leasing work?
Through a finance company we can help arrange lease finance. Subject to approval and after receipt of a signed proposal form, the finance company purchases the equipment on your behalf. At this point the finance company own the equipment and rent it back to you for the duration of the agreed lease term. You pay the finance company Monthly payments until the end of the agreed lease term.
What happens to the equipment at the end of the Lease term?
At the end of the fixed term, providing the agreement has run the term with no problems, you can either upgrade to new equipment on a new lease or on receipt of one further months payment, uninterrupted possession is granted via a third party. In simple terms you then own the equipment and no further payments are due!
Lease V Bank
Bank’s often want security for their loan on your personal or business assets, or both – Leasing is unsecured. Bank loans and overdrafts can be repayable on demand. A Lease facility is fixed until the term agreed ends.
Why is Leasing so Tax efficient?
Every Lease payment is 100% tax allowable as a tax deductible expense, thus reducing the real cost of your purchase.
How will Leasing benefit my business?
Lease finance is a very convenient and comprehensive method of equipping your business with a minimal capital outlay, freeing hard earned financial resources for development elsewhere, paying for the day to day running costs or investing in additional stock etc.
Do Leasing rates fluctuate like interest rates?
No, Leasing rates are fixed and do not vary with bank interest rate charges, a major bonus enabling you to accurately plan ahead your cash flows and budgets. It is also inflation proof as payment is out of future earnings at a fixed amount, with real costs falling sharply with each year of inflation.
Can I apply for Leasing if I am a new business?
Yes, new businesses are certainly considered and would benefit from reduced start up costs.
NB Lease finance is subject to status and one applicant must be a UK home owner.
Is there a minimum value?
Yes, the minimum order value is £1,000.00 + VAT
How long is the leasing period?
The repayment period is normally 36 or 60 months although 12, 24 and 48 months are also available. Short term hire is not available.
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