There are several reasons to lease something your business really needs. Avoiding the substantial upfront cost is just a part of it. There are a number of further advantages that keep providing a benefit to your company over the course of your finance agreement – it’s no wonder that 90% of The Times’ Top 100 companies use leasing.
Our Lease It product provides access to dozens of lenders. For almost any equipment purchase, it can provide the boost you’ve been waiting for.
We’ve listed a few sure-fire benefits to a Lease It agreement below…
1. A cash investment that pays for itself
Businesses in your industry have their own specific needs in order to make money. Whether that’s a full cooking, cooling and washing setup for a new restaurant or specialised machinery for a manufacturing plant, you likely can’t function (or grow) without it. Leasing frees up investment because you aren’t paying for the total cost at once. Instead, it’s spread over the course of the lease. And in that time, you will profit from the equipment directly, covering the leasing debt with plenty more to spare.
2. Upgrade whenever you like
We all know that technology moves at an astonishing pace these days. Lease It lets you stay abreast of the newest, best equipment on the market. Whenever something is damaged or becomes outdated, you get a contemporary upgrade. There is no effort on your part, aside from telling lenders what your business needs.
3. Maintain cost records easily
As the lease continues, you’ll have its repayments in a single direct debit – no matter how many pieces of hardware, software, materials or machines are on the agreement. That gives you a clearer view of where your cash is being spent, allowing a Financial Director – or you yourself – to plan ahead better.
4. Leases are tax-deductible
You save money another way too. Since leases classify as an expense, they are 100% tax-deductible. That means you save full Corporation Tax costs whilst reaping all of the benefits. Additionally, leased equipment doesn’t qualify as capital. It stays off the company balance sheet and therefore doesn’t depreciate over time, helping to maintain positive cash flow if you’re selling or aiming for third-party investment.
5. You can buy the equipment at a flexible date
Buyouts can come at almost any point in your lease agreement. You may want to keep something you’re paying for when it’s down to a very low purchase amount. With Lease It, you and the lender can discuss buying terms from the get-go. This works for vehicles, plant machinery, IT packages, physical tools, or any other asset.
We’ve ran through the main advantages, but that’s only the beginning… Lease It deals are part of the UK’s ongoing channels to alternative finance. To help you reach your extraordinary, it could be exactly what you need. Speak to a member of the Johnson Reed team today to find out more.