Back to Top

Extra Services

Extra Services Leasing Options Advantages of leasing for you

 

Conserve cash reserves
Money is kept ‘in the business’ rather than in depreciating assets. Leasing allows the customer to save resources for other purposes, such as new business opportunities, unexpected needs, business development or marketing. Good credit customers can tailor the timing of the payments to suit their expected cash flow including seasonal cash flow circumstances. (For example, an initial payment holiday).

Budget outgoings
Medium term planning: The customer will know what their payments are going to be, right from the start. These can be monthly or quarterly. The finance will be secure for the term of the agreement; it cannot be recalled early like a bank overdraft. The payments are also fixed for the length of the term, which enables easier forecasting of cash flow.

No extra security required.
The equipment itself is normally the only security required on a finance agreement. If the customer borrowed from the bank to buy the equipment instead, they would normally have to provide extra security or the rates would be substantially higher

Tax advantages
Due to the nature of the tax advantages of leasing (i.e. the full rental costs being offset against profit), and taking into account the opportunity cost of investment, the lease will often work outCHEAPER THAN IF THE ASSET WERE BOUGHT FOR CASH. Ask the customer to run the lease by their accountant.

Maintains Credit Lines
For Other Use Equipment can be acquired without impacting other credit lines, such as loans and overdrafts, making further borrowing easier

Upgrade to the latest equipment
The flexibility of a lease allows the customer to upgrade ageing or obsolete equipment for more technically advanced products, and the monthly rates can be adjusted accordingly. When leasing, the customer is not limited to acquiring the equipment that they can afford to pay at the time. Monthly payments enable the customer to select the equipment that is most beneficial for their business.