Leasing Facilities

We are pleased to offer Leasing Facilities through Lease Direct, Who specialise in providing your business with the best available finance solution. With access to all the major funding lines in the UK, they can guarantee that they will obtain you the best facility. This may involve obtaining the best price, best deposit terms, least onerous credit agreement or simply finding somebody who will just provide the finance! Most of our Products can be leased subject to status; please let us quote you on your requirements

 

IT Leasing

IT is a major area of investment for many businesses. As technology evolves, new becomes old very quickly and the requirement to upgrade or replace is an ongoing treadmill.

As a result, IT finance proves very popular. In addition to spreading the cost, we provide options to upgrade equipment throughout the agreement while covering outlay for installation, training, wiring and many other ‘non-leasable’ elements of the purchase.

Software is available too, on lease format.

For large projects on lease rental, we can now obtain relatively high residual values on used pc’s – this drives down the amount financed and removes the requirement to pay full price on equipment that is unsuitable in less than three years time – considerably reducing repayment terms.

 

CUSTOMER BENEFITS OF LEASING

Maintains cash flow in your business

Leasing enables the cost of goods to be spread over a maximum term of 7 years. This maintains cash within your business, which can be utilised for other means.

 

Fixed payments throughout the term

This assists when planning budgets, as repayments are fixed on day one. It also combats any future interest rate rises, as rates are fixed throughout.

 

100% Finance

Leasing often provides you with finance for the total cost of a project including installation, training and other associated costs. Agreements can have equal repayments throughout the term with no requirement for large up front deposits that affect cash flow

 

Tax advantages

Lease rental payments can attract 100% tax relief, if the equipment is depreciated over an equal or lesser term. This results in accelerated tax relief when compared to the capital attained when purchasing the equipment outright..

Under a leasing agreement the total amount of all rentals payable in each Tax year, can be fully off-set against Corporation Tax, over the life of the agreement. Only leasing enables you to write-off the full purchase price, against Tax, linked to the expected useful working life of the equipment - which may be as short as three years, for high tech products.

If you compare this for tax purposes, to outright purchase (which provides only 25% Writing Down Allowances each year, on a Reducing Balance basis) it takes seven years to write off 90% of the full purchase price, against Tax! (This is true, even if your business qualifies for a 40% First Year Allowance under the Government’s current S.M.E. Scheme).

It is perhaps not surprising then, that over 30% of all capital equipment purchased in the UK, is now leased.

 

Enables larger than originally planned purchases to be made

Because leasing spreads the cost of purchase, you may now be able to afford more than you previously thought. Or, alternatively, allow you to require more expensive, yet more efficient equipment. This can in turn improve your business and profitability quicker than anticipated.

 

Secured against the equipment purchased

This leaves other business or personal assets untouched and avoids fees associated with securing finance against property.

 

Maintains other credit lines

All agreements are ‘stand alone’ leaving current credit facilities in place. Leasing also prevents businesses purchasing on their overdrafts, which is considered poor business practice given the term that the equipment will be required.

Leasing can also help businesses financially manoeuvre outside of their current banking arrangements and often avoids security required with most other facilities.

Leasing also opens up new channels for future growth.

 

Accelerate the Return on Investment

Each and every asset acquired for your business demands a pay-back. Deferring the acquisition costs by leasing new equipment, can provide you with an immediate return on that investment.

 

Preserve Working Capital – Think Revenue

Maintaining liquidity (i.e. available cash), is critical to the health of a business and is fully supported by the practise of leasing, which removes the need to tie up valuable cash resources in a rapidly depreciating asset; freeing up capital that may certainly be better invested, elsewhere in your business. Leasing allows you to treat the acquisition of new equipment as a revenue, rather than a capital expense.

 

Easy to Upgrade

The valuable working life of many business assets can be hard to predict. Given the pace of technological advancements, any finance arrangement must be flexible enough to accommodate these developments. Our leasing companies therefore expect and anticipate the need to provide you with replacement or additional equipment and we will gladly quote the rental for a new Agreement, which will automatically extinguish the liabilities under your existing arrangement.

 

CASH?... LOAN?... LEASE?... - Questions and Answers...

Check the table below, and see how lease is the sensible option...

CAN I AVOID A LARGE CASH OUTLAY?
Cash	100% of cost
Loan	Down Payment, often 25%
Lease	100% financing
AFFECTS MY BANK CREDIT LINE?
Cash	Balance sheet impact
Loan	Decreases credit line
Lease	No money is borrowed
AFFECTS OPERATING CAPITAL?
Cash	High front-end costs
Loan	Down Payment required
Lease	Low front-end costs
PAYMENTS?
Cash	100% now
Loan	Payments vary with interest
Lease	Fixed payments, tax benefits
CAN I UPGRADE/ADD ON EASILY?
Cash	No
Loan	Re-application often required
Lease	Yes
CAN I SCHEDULE PAYMENTS TO MATCH MY CASH FLOW?
Cash	No
Loan	No
Lease	Yes

 

VALUE

“It’s unwise to pay too much, but it is unwise to pay too little.
When you pay too much you lose a little money, that is all.
When you pay too little, you sometimes lose everything, because the
thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot.
It can’t be done.
If you deal with the lowest bidder, it’s well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.”
John Ruskin 1819 - 1900

 

Why Leasing?

Leasing companies are responsible for the purchase of several billion pounds worth of manufacturer and dealer sold equipment each year.

By reading the information below you will quickly realise that leasing is the best option for you...

 

Benefits of Leasing to YOU and Your Salon...

One of the primary reasons for a customer to lease equipment as opposed to outright purchase, are the tax breaks. All lease payments made are fully tax deductible, as opposed to bank or other funding where only the interest element of the transaction would be allowable each year

• Cash flow benefits are also considerable. Cash should be viewed as a valuable commodity and left for day to day or investment purposes, whilst allowing a leasing company to fund equipment.
• Businesses would not pay a lump sum in advance for your other valuable assets e.g. staff!! More likely monthly in arrears!!
• Income generated from increased salon revenues, pays for the equipment lease payments.
• Obtain today's latest salon equipment with tomorrow's money.
• Easy to upgrade/part exchange.
• Leasing provides immediate use of equipment without capital outlay. NO DEPOSIT needed – No collateral or security needed
• Leasing protects other capital and existing bank facilities.

Conclusion?

Leasing is definitely the smart way to go, not only will it save you money in the long run, it will boost your cash flow short term, and allow you to budget with confidence...