LEASE YOUR PEDIGREE PENS CATTERY…
Leasing is not a second rate alternative to paying by Cash! It is often the very best way to acquire the up to date assets you need; a fact appreciated by some discerning buyers, to mention a few: –
A recent survey conducted for the UK Leasing Industry found that….
95% of The Times Top 100 Companies, and
85% of all Accountants, and
80% of Local Authorities inEngland&Wales
….regularly take advantage of the benefits of leasing, to acquire a wide range of assets. This is no accident or coincidence.
WHAT ARE THE ADVANTAGES?
“Cash is King” it is said, a maxim fully recognised by the practise of leasing, which removes the need to tie up cash resources in a rapidly depreciating asset; freeing-up capital that may be better invested elsewhere in your business. Leasing allows you to treat the acquisition of new equipment as revenue, rather than as a capital expense.
Each and every asset acquired for your business demands a payback. By deferring the acquisition costs, leasing new equipment is an ideal way to accelerate the return on your investment.
Under a leasing agreement the total amount of all rentals payable can be fully offset against your Corporation Tax liability in each financial year. This uniquely enables you to write off the full costs of acquiring new equipment over its expected working life (perhaps only 3 years for high tech. Equipment).
Compare this for Tax purposes to outright purchase, which only permits Writing Down Allowances on a Reducing Balance basis, and it will take 7 years to write off 90% of the same acquisition costs (even if you qualify for a 50% First Year Allowance under the Government’s current S.M.E Scheme)!
It may be for this single reason alone, that over a third of all capital equipment purchased in the UK is now leased.
Unlike some other forms of finance, where interest rates fluctuate, leasing rentals are fixed for the duration of the agreement. This allows you to budget in complete confidence that costs will not escalate.
Our leasing facilities are dedicated to the equipment concerned and no other form of security is normally required. Our facilities are likely to be outside your existing borrowing capabilities and therefore represent a very useful additional source of finance.
The valuable working life of many assets can be hard to predict. Given the pace of technology advancements, any finance arrangement must be flexible enough to accommodate these developments. Our leasing companies therefore expect and anticipate the need to provide you with replacement or additional equipment and will gladly quote the rental for a new Agreement, which will automatically extinguish the liabilities under the existing arrangement.
Read more by clicking here or Contact Tim Gammon at Lease UK for more information.