FAQs
Wouldn’t it be better to buy outright
No – Businesses should protect their cash reserves. A wise businessman once said “Use your cash to buy assets that appreciate in value but use the banks for assets that depreciate!”
Isn't leasing just for businesses who can't afford to pay cash?
No – Businesses that lease do so because they know that there are better uses for their cash reserves. They also know that every repayment made towards the lease is 100% tax deductible.
Wouldn’t leasing only be relevant for large acquisitions?
No – Leasing can be used for all sizes of transactions. You can lease equipment from £1,000 upwards.
What happens at the end of the lease?
For a one off payment you or the customer can gain ownership to the equipment.
What happens if the equipment becomes faulty?
You are protected by the manufacturers/suppliers warranty. It is your responsibility for any repairs if the equipment is out of warranty.
What happens with the VAT?
Each rental attracts VAT. This can be reclaimed if you are VAT registered.
What can be included in the lease agreement?
Leasing enables the whole solution to be financed which can include hardware, software, training, installation and warranties.
Can the lease agreement be settled early?
Yes – Please contact us for further details.
Is there any penalty for settling early?
No – And in some cases there may be a reduction in the outstanding balance.