There are a number of reasons why equipment leasing is a much better alternative than paying cash for new equipment.
Here are the main reasons why:
- Rather than using your hard-earned and precious cash, pay for your equipment over the term of its useful life. This makes repayments much easier to budget.
- Leasing agreements often have minimal deposits too!
- Start using your new equipment immediately, rather than when you can afford to buy it.
- By using Operational Expenditure (OPEX) you can write off the total amount of your leasing agreement against corporation tax.
As well as the reasons above, working with Johnson Reed provides you with a number of extra benefits that you may not receive with other leasing companies, including:
- Agreements are very simple to arrange, and you often get an answer within 24 hours.
- Choose the terms of repayments to suit your own business.
- Choose between flexible options for the end of the contract, from ownership, upgrade, or hand-back of the equipment.
What are the tax benefits of leasing?
It’s simple – leasing is a form of Operational Expenditure (OPEX), which is the cost of the day-to-day running of your business. These types of costs are fully-deductible from your annual corporation tax bill, whereas the alternative buying the equipment outright (Capital Expenditure) is only partially-deductible.
How much can I borrow?
Whether you’re replacing single items of equipment or have large set-up costs for a new start venture, we can help you get finance. We typically deal with companies looking for finance anywhere between £1,000 to £20,000, however we can just as easily help you find £500,000 or more.