Benefits of Leasing
Leasing equipment can help end users to manage their cash flow and budgeting. It allows them to acquire the equipment they need and pay for it while earning money from it at the same time.
There are also tax benefits to the end user of the equipment over its working life. All payments made under a lease agreement reduce the taxable profit of the business by 100% of the charges – effectively reducing the net cost of the leasing package to the end user.
Leasing also allows equipment to be upgraded, exchanged or increased as developments in technology and working practices demand, helping them to keep up with new advances without being tied into expensive equipment.
Leasing can help end users to protect and reserve other lines of credit (such as loans and overdrafts) and offers a viable, cost effective alternative to these funding methods
FAQs – Customer Finance
A nominal amount is required in advance of the lease agreement. This is usually equivalent to a monthly payment and means you can start using the equipment straight away and generating profit from it before the next payment is due.
Your monthly payments are fixed and are therefore unaffected by interest rate rises. So as inflation rises the cost of the equipment reduces.
Yes, all lease payments are deductible as a business expense and therefore attract tax relief for the full duration of the lease agreement. Contact your accountant to find out how this can reduce your overall tax bill.
Direct Debit is the preferred method of repayment.
Don’t hesitate to get in touch for more queries on leasing with D7 on 0161 850 9913
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