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FAQ

What is lease exactly?

A tax efficient borrowing facility specially designed for businesses acquiring equipment. The finance company buy equipment on behalf of the customer and then lease it back to them over an agreed term.

How is a lease different from a loan?

A lease is an agreement to make payments for a specific amount of time for the right to use the equipment owned by the lease company. As the leasing company owns the equipment every £ spent can be offset against Tax liability i.e. 100% of the cost

Are all leases the same?

No. There are 3 main types.

  1. Lease Rental – 100% tax allowable
  2. Lease Purchase.
  3. Master Lease – Open-ended lease allowing you to continuously add to the lease.

What is required to qualify for a lease?

A simple application can be done over the telephone. Accounts may be required dependent on value.

How long for an approval?

Approvals are usually accomplished within 4 working hours, depending on the size of the transaction and all submitted information is correct and complete.

Why is a lease so tax efficient?

Every lease payment is 100% allowable as a tax-deductible expense, therefore reducing the real cost of your purchase. A cash or loan purchase will only allow a small percentage write off in the first year, reducing each year thereafter.

How much of an initial investment is required?

No Deposit is required only the first rental which is usually 1 month.

Is borrowing from a bank cheaper?

Initially payments are probably lower, but over the course of the lease the greater tax savings will mean the lease compares favourably with a bank loan. Depending on your circumstances it may even be cheaper to lease.

If bank finance and lease finance are similar in cost in the long run, why shouldnt I just go with my bank?

Bank lending is always secured, on your personal or business assets, or both! Our lending is unsecured. Also, bank loans and overdrafts are repayable on demand check the small print! Providing rental payments are paid on time, our facility is fixed until the term ends.

Can service fees be added?

Yes. Installation and service fees can be included to the lease as well as the warranty uplift.

What about adding software?

Yes. Software and other soft costs can be added to the lease. Software only leases are available.

Can my equipment be upgraded during the term?

Yes. Simple add-on programs are available throughout the term off the lease.

What about adding equipment at a later date?

Yes. You build up equity in a lease that can be utilised to add or upgrade equipment if required.

What happens to the equipment at the end of the lease term?

Providing the contract has not been broken, we can offer uninterrupted possession of the equipment.
We will sell the goods to a third party of your choice for a small one off fee agreed in advance.

Are there any hidden costs?

No. All figures are agreed in advance enabling you to plan with confidence.
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