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Terms & Conditions

Finance solutions for Business            

What Is Leasing?

Leasing is the process where businesses can obtain an asset / equipment for a set duration with minimum initial outlay. The lessor (finance company) will purchase the equipment and is the legal owner during duration of the lease. The lessee will pay a series of payments for the use of the equipment.

Reasons to Lease:

  • Leasing will give businesses a new credit line that once agreed and started, the terms cannot be changed in any way, which includes the monthly or quarterly repayment.
  • Leasing conserves valuable working capital for more profitable use elsewhere in your business.
  • Leasing is fully tax allowable
  • Leasing does not affect existing banking overdrafts or other credit lines. With credit being restricted, leasing can be the main way for businesses to acquire new equipment.
  • Leasing assists businesses to accurately budget and forecast, as lease is tailored made for your requirements. As leasing is a fixed cost, and inflation rises, the real cost to you will decrease.
  • Technology is changing and improving at an ever increasing pace.  It is also causing equipment to be come obsolescent, generally much faster than we imagine when we purchase the equipment.  Leasing means that your cash is not tied up into a rapidly depreciating asset, protecting your bottom line. It also transfers all risk of obsolescence of the equipment to the lessor since there is no obligation to own equipment at the end of the lease.

Everybody's reason can be slightly different, but the basis is always the same; spreading the cost over the life of the equipment and making the transaction tax efficient.

No one pays their staff 5 years salary in advance, why should you pay for your equipment 5 years in advance, before it has started to contribute profit to your business. For many, leasing just makes common sense.