Products - Leasing
Leasing
Upgrade your IT. Free up your capital
Buying new technology can take a huge bite out of your working capital and loans are getting more expensive. Leasing gives you the latest technology at a price you can afford, along with attractive tax benefits.
Considering Leasing IT equipment?
You can lease almost anything we sell and profit from our flexible, tailored plans on equipment worth from five hundred to hundreds of thousands of pounds.
You can lease an entire system including accessories, software and even support. You can even upgrade your system before the end of your lease.
Leasing gives you the technology you need at an affordable fixed monthly cost. What could be better for your business and your cash flow?
Overview
You want a new Network but think it's a lot to pay out in one go. Now you don't have to worry about finding the lump sum, our leasing facility enables you to make the most of your budget by spreading the cost of the equipment over a period of time. This can make a big difference to your cash flow if you are buying for a whole department or company. Because we deal with leasing providers who specialize in IT finance, you are able to lease the entire system including accessories, software and even the support. You can even upgrade your system before the end of your lease.
What is leasing?
Leasing is a financial contract between your company and a leasing company. You will be committed to repay a given number of fixed payments for the term of the contract, (for example 36 monthly payments of £50+vat). We supply the goods to you and we are paid by the leasing company i.e. you are effectively renting the goods from the leasing company for the duration of the lease. The goods are owned by the leasing company at all times. Because you are renting and not buying the goods you can claim 100% tax allowance on the payment.
Who can apply?
Lease finance is available to all companies within the European Union, which includes sole traders, partnerships, limited companies, PLC's, national, and local government departments, schools, universities, hospitals & charities. The minimum price that would qualify for a lease is in the region of £500 + VAT and there is virtually no upper limit. Due to the tax laws that apply to leasing, we unable to offer this service to customers in Isle of Man, Republic of Ireland or the Channel Isles.
PLEASE NOTE: Small Businesses that have been trading for less than 18 months may have problems obtaining a lease due to their lack of trading and credit history available to the leasing company to make an application decision.
Easy to arrange
It is very easy to arrange a lease - just call us with your requirements to get an instant quotation on your equipment you need. Please note that the figures quoted may change depending upon the credit rating and status of the applicant.
We handle all the paperwork and all you have to do is sign the appropriate forms which are sent to you.
Educational/public sector special rates
If you are looking for finance for state schools, universities, national and local government departments and hospitals we can offer highly competitive rates or deferred payments. Please call to discuss your requirements.
Benefits
The benefits of leasing include:
· Easy to arrange: Call us for an instant quote.
· Simple paperwork: Just one signature required.
· No large upfront costs: Keep your capital working for you.
· Tax benefits: Leasing is 100% off-settable against pre-tax profits.
· Flexible payments: Choose from 1 to 5 year terms.
· New technology: Upgrade whenever you choose.
· Budget Management: Fixed monthly payments for accurate budgeting.
· Credit Lines: Protect your overdraft and optimise your commercial credit.
· Special Rates: Special rates for state schools, universities, government departments and hospitals
Leasing Vs Buying
Whether you are a sole trader, a PLC or a government dept., cash flow is the life blood of business. When it comes to spending large chunks of it on IT equipment, sooner or later the same question will come up; is it better to buy the equipment outright or to lease it. Below we will try to show you that from a cash flow point of view leasing has considerable advantages to your cash flow.
An up and coming sales company has decided that it needs to update its aging servers. They have decided that the network upgrade will cost a total of £11,750 inc VAT; they have also decided that they expect to expand further within in the next 3 years to ensure that they don't fall behind the technology stakes again; the following two scenarios show the financial benefits of leasing Vs buying.
Scenario 1 - Buying outright
Our company buys the new servers for a total of £10,000 + VAT, Immediately they are £11,175 down but as they are VAT registered they can claim the VAT back at the end of the current quarter in 3 months time.
And that's it; your money is tied up in the new equipment, so if you had other plans for the £10k then you're going have to get it from elsewhere. Over the next three years our company can claim back 25% of the balance per year.
Initial Purchase Price £10,000
Year 1
25% of £10,000 = £2500 - Balance = £7,500Year 2
25% of £7,500 = £1875 - Balance = £5,625Year 3
25% of £5,625 = £1,406 - Balance = £4,219So at the end of the servers expected working life our company has been able to claim £5,781 against pre tax profits.
Scenario 2 - Lease Rental
Our company leases the servers over a 3 year period paying 1 initial payment of £343 + VAT, then 35 monthly payments of £343 + VAT. So out of their original £10,000 + VAT budget they still have £9657 to spend on stock which they can sell for a profit, something that could not have been done if they had bought the equipment outright. This really is a case of having your cake and eating it.
But there's more. Not only does our company retain the money to spend on more stock, but the payments they make on the lease are 100% tax allowable against pre-tax profits. As shown below:
Year 1
100% of £4,116 (12 x £343)Year 2
100% of £4,116 (12 x £343)Year 3
100% of £4,116 (12 x £343)Total that can be claimed back against pre tax profits is £12,348.
Even though the lease rental has a higher cost of £2,348 + the £10,000 over the 3 years, the ability to claim all of this back compared to the £5,781 for the outright purchase shows the tax benefits of leasing.
Conclusion
Why 'make do' with equipment that 'won't do'? Our leasing solution can give you the tools you need and not what your bank account dictates to you.
So leave your overdraft intact and take the pressure off. After all, today's cutting edge equipment will be tomorrow's 'old hat'. It's the flexible that prosper, not the companies that hang on to old, outdated equipment. As any financial advisor will tell you, investing large sums in fast depreciating assets is not a wise move.
