What is leasing?
Leasing is a contract between the funder (lessor) and a customer (lessee), giving the customer the use of the equipment in return for payment of rentals over an agreed period. The lessor retains ownership of the asset, which means that the customer pays to use the equipment over a set period of time - typically the agreed working life of the equipment.
Conserves cash reserves
Leasing enables you to acquire the solution you need, without making a substantial lump sum cash payment. This can then be used to better effect elsewhere in the organisation - such as product development, new staff or new business opportunities.
If you pay corporation tax, leasing can be particularly attractive. Payments may be deducted from taxable profits and so the net cost of leasing the equipment is reduced.
Payments are fixed for the term of the lease, protecting you from changing interest rates. Knowing the amount of future payments enables more accurate budgeting and cash flow projections. And because payments are fixed, the true cost of leasing diminishes over time as the value of money depreciates.
Keeps credit lines intact
When you lease equipment existing credit lines, such as any arrangements with your bank, remain intact. This gives you the additional flexibility to use these arrangements, if necessary, in the future.
The flexibility of leasing allows your organisation to keep up with changes in technology and respond to any industry or competitive pressures. In many cases, by extending the length of the lease, changes to your original installation can be achieved without an increase to your payments.
Payments can be made on a monthly, quarterly, stepped or deferred basis. They can be set to suit your budgets, roll-out schedules and/or cash flow requirements. Lease terms can range from 1 – 5 years.
No deposit is necessary and, in most cases, all of the costs of a solution can be covered in your payments, including all hardware, software, installation and maintenance. We will finance equipment and services from a variety of suppliers, thereby simplifying your payments.
For more info on the various finance options available, contact us on 0113 257 4448 for a no obligation discussion.
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