What is leasing?
Leasing is a financial contract between you, the customer, and a leasing
company. You will be committed to repay a given number of fixed rentals for
the term of the contract, (for example 36 monthly payments of £100). If the
equipment fails to work, you must not stop paying the rentals as this breaks
your contract with the leasing company. You must advise the leasing company
at once and ask them to resolve your problem.
How often do I pay?
You pay monthly or quarterly over 3 years
by direct debit.
When do I pay?
You will normally pay the first rental
about 7-10 days or so after the goods are delivered. The second and
subsequent rentals will follow.
The Advantages of
leasing
Cash flow
- Keep your money working for you
Instead of having to pay out a lump sum
you can spread the cost of your laptop and software over its useful working
life.
No additional security required
Leasing is entirely separate from any bank
lending or other credit arrangements you may have. By leasing equipment,
your overdraft or bank loans are free for use in running your business.
Tax benefits
- 100% allowable against pre-tax profits
Leasing is fully allowable against tax.
All payments are 100% tax efficient. Traditional Hire Purchase is not as tax
efficient and therefore may cost more in the long run even if it initially
looks cheaper.
Fixed budgeting
No deposits are required and you know
exactly what you will be paying per month for the term of the lease. Your
lease costs are fixed for the duration of the agreement and as such are
unaffected by interest rate changes or other external factors. You can
include each year's rentals in your annual budget and remove any guesswork
from your financial forecasting.
Upgrade facility
As your business grows, and technology is
constantly changing, you can upgrade your equipment on lease at any point
during the lease term, and either extend the term and keep the repayments
the same or renegotiate a new lease.
To find
out more please Contact our sales team.
A:
Unit 14, Millars Three, Southmill Road, Bishop’s Stortford, Hertfordshire,
CM23 3DH T:
01279 755339 E:
cs@corporate-computing.com