Leasing is extremely cost efficient. You can offset 100% of the leasing payments against your tax liability to maximise tax efficiency. Convert your Capital Expenditure (CAPEX) to Operational Expenditure (OPEX) and release valuable working capital for alternative projects within your business.
- 100% Tax Relief
- Safeguard your liquidity
- Improves your companies credit rating
- Enjoy reliable budgeting on the basis of consistent leasing payments
- Access to cutting edge technology
Why Leasing Is Beneficial & Profitable For You – 5 Compelling Reasons
Contrary to common belief, leasing is more cost effective than renting or buying outright any type of office equipment. This is the reason why most businesses large and small choose to lease their technology. Look what you gain when you lease:
Better Cash Flow
You do not need to tie up any of your financial capital, while you can take advantage of the latest available office equipment. We work with you to find out the best possible scheme for your company. You can use your cash to build your business instead of tying it up in capital expenditure of office equipment.
Allows You To Always Stay Up-To-Date With Technology
What is high-tech today is often obsolete sooner than you think. How much change can your business afford before giving up trying to keep up with the quick-changing technology of today? When you lease equipment, keeping up is the least of your worries. We provide you with the latest and upgrade the equipment as is necessary. Imagine the massive savings you can enjoy when you do not have to scrap old equipment and buy new every 2-4 years.
Many of the leased assets need not be entered onto the balance sheets, which will help you have a better debt-to-equity ratio. This is can be a great plus point if you plan to take out a loan to further your business.
Stay Ahead Of Your Competitors
Leasing is the smart way to stay ahead. When your office equipment is always up to date, your staff would be able to work better, more productively and as a result bring more business. You will grow faster with leased equipment with the least investment. Certainly working smarter.
Project A High Professional Look And Feel
It makes a great difference when your customers walk in an ultra-modern office with the latest cutting edge equipment and the latest technology. It is easier to trust that you are the right business to partner with when you have an excellent set up. Leasing can help you project the right appearance so your customers will easily be won over to do business with you.
Lease vs Buy Example
This company is looking to invest in new technology for its business. They have two options, either to purchase the equipment or to lease instead.
|Year||Capital Allowance||Tax Relief||Year||Capital Allowance||Tax Relief|
|1||18% of £7,500 = £1,350||Less 20% = £270.00||1||4 lease payments of £817.73||Less 20% = £654.18|
|2||18% of £6,150 = £1,107||Less 20% = £221.40||2||4 lease payments of £817.73||Less 20% = £654.18|
|3||18% of £5,043 = £907||Less 20% = £181.55||3||4 lease payments of £817.73||Less 20% = £654.18|
|Total Tax Relief||£672.95||Total Tax Relief||1,962.54|
Assumptions: Equipment Price: £7,500 Lease Period: 3 Years Frequency: Quarterly Company’s Tax Rate: 20%