Finance Lease rentals are 100% allowable against pre-tax profits. This means that the total cost of your investment – both capital and interest – can be offset against tax during the lease period, with the leasing payments deducted as a trading expense.
Leasing allows you to take advantage of technology improvement at a time of your choosing and at a reasonable cost. By contrast a business that owns equipment can only upgrade by reinvesting and disposing of the existing asset.
No Large Upfront Costs
Most businesses earn revenue over time, but have to pay for equipment up-front, in one go. Why pay out in one lump sum when with leasing you can pay a small amount every month or quarter? Businesses prefer to pay as they use!
Preserve Credit Lines
You can preserve your existing bank lines and optimise your use of commercial credit sources.
Leasing ensures a fixed manageable payment, irrespective of interest rate rises. The cost of rental is fixed enabling accurate budgeting.
Cash is king and it makes sense to use it for expansion or critical business needs. Leasing for office technology preserves precious cash.