Laundry Equipment Lease Purchase
Finance Options for your Laundry Equipment
LEASING, WHAT IS IT?
Leasing is a finance that is established as a tax efficient method of acquiring a variety of capital equipment. Most items of business equipment may be leased, from franking machines to vending machines, refrigeration to photocopiers plus of course laundry and kitchen equipment.
FIXED PAYMENTS – BUDGET CONVENIENCE
Unlike many overdraft facilities and high street bank loans that are subject to rate changes a rental facility gives you the comfort of knowing exactly how much your payment will be as the rentals are fixed for the duration of the contract.
PRESERVE OTHER CREDIT FACILITIES
Using existing lines of credit to finance equipment can tie up funds, funds that could be more effective for unexpected or short-term requirements. Plus, leasing is unaffected by interest rate changes, consequently you can budget accordingly. Banks may require security by setting a fixed or floating charge and perhaps limit funding available; they may also require a deposit. It is likely a loan does not allow you the flexibility to change or upgrade your equipment, as much as leasing does.
HOW ARE PAYMENTS EFFECTED BY INFLATION?
In real terms the payments are reduced over the period of the lease by depreciation in the value of money
EQUIPMENT CAN BE UPGRADED
This facility allows you to stay ahead of technological developments whilst also maintaining a healthy cash flow. As your requirements change simply add to or upgrade your existing equipment at any time during your agreement.
VALUABLE TAX ADVANTAGES
Lease rentals are 100% allowable against pre-tax profits. In real terms a minimum of 25% tax relief is available therefore reducing the overall expenditure. Outright purchase not only ties up capital it also reduces tax deductible allowances.
Please note this tax notification is given without liabilities and we suggest for further guidance and advice your customers contact their professional advisor so as all relevant considerations are accounted for.