THE ADVANTAGES OF LEASING

YOUR QUESTIONS ANSWERED

In the United Kingdom a very large number of businesses

choose to lease equipment because of the advantages

leasing offers:

Protects Working Capital

Equipment brought outright means that the cash you have

invested becomes tied up in a depreciating asset and

cannot be used for other purposes. Leasing the items of

equipment you need enables you to save your cash

resources for other purposes including repayment of bank

loans, slow payment by your customers and unexpected

problems.

When you lease equipment existing credit facilities

including bank facilities are not effected so that these

remain for use if necessary in the future.

Lease payments are not effected by changes in interest

rates so that unlike bank loans or bank overdrafts you can

accurately budget for these payments for a fixed amount

over a fixed period of usually two to five years. These

payments are usually made by bank standing order or

direct debit on the same date monthly or quarterly.

For businesses paying tax leasing can be very

attractive.

Leasing payments including VAT may be deducted from

taxable profits, which of course reduces the

net cost of leasing the equipment.

Most lease agreements either stipulate for three months

rentals in advance or do not require an initial payment. In

The latter case you simply make regular payments

throughout the life of the agreement.

If you have any questions about leasing options,

speak to our sales department and we will be more

than happy to discuss what options are available to

you, our phone number is 020 7242 3960