When your business needs to acquire assets, purchasing them outright might appear to be the simplest option as cash purchases can work out cheaper long-term and the items are classified as business assets and so can be used as security. However, this might not always be the best use of your working capital.
LEASING BENEFITS YOUR BUSINESS BY:
Improving affordability – When purchasing new premium IT equipment and paying outright, you may have restrictions on what your organisation can afford. Instead of purchasing a product that doesn’t quite suit business requirements, leasing makes it easier to afford the specification that your organisation needs.
Freeing up cash flow - Why pay upfront for an asset that you will be benefitting from for several years? Leasing the equipment you need enables your organisation to free up working capital for other business requirements.
Budgeting – As the lease of the asset will be paid for monthly, over a fixed period, it will assist with budgeting requirements and forecasting cash flow for the future.
Utilising Tax advantages - Leasing is 100% deductible against taxable income. Therefore throughout the leasing agreement you can gain tax relief on the monthly payments that you make.
Fully supported - for the duration of the lease - If your equipment is faulty we will fix it and provide a loan in the meantime.
Flexibility - If you decide to upgrade or replace the equipment you can simply make a small adjustment to your regular payment, rather than investing a lump sum upfront.