Why should I consider leasing for my business?

Leasing can work for businesses of varying sizes in a variety of sectors and we will work hard to find you a lender who can help you to achieve:

• Great for start-up businesses – The low initial cost and payments spread over a period makes it easier for start-up businesses to obtain the capital assets they need.
• Lower tax payments – Leasing costs are considered to be a trading expense, which may make it possible to deduct them out of your business’ taxable profits.
• Access to better equipment – The use of this financing method can provide your business with access to better equipment which may otherwise be too expensive for your business to purchase outright. This would allow you to gain a competitive edge and become more productive.
• Preserve your cash flow – It can be an excellent way to protect your business’ cash flow and ensure you can continue meeting day-to-day financial obligations. The fixed nature of the repayments allows for effective budgeting, planning and forecasting.
• Regular upgrades on equipment – Leasing assets allows you to trade them in for the latest model at regular intervals, ensuring you are always operating with the latest equipment.
• A way to avoid depreciation – Taking full ownership of an asset means you stand to lose money through depreciation, if you wish to sell it at a later date. Leasing avoids this problem, by allowing you to simply return the equipment to the lender, once you have finished using it.

Are there any risks associated with lease finance?

• Non-payment will affect your credit rating – Missing payments or not paying at all can have an effect on your business’ credit rating. This could potentially impact your chances of borrowing in the future and a default is also likely to result in repossession of the asset.
• You are not the legal owner – With leasing, you will not legally own the asset unless you make the balloon payment at the end of the lease term.
• Your interest rate will reflect the risk level to the lender – If you are in a sector which is seen as a particular risk, or if your business has a poor credit rating, you are likely to have a higher rate of interest than a business which is perceived to be safer.
• Early cancellation and damages – Although leasing contracts are relatively flexible, there may be some penalties for cancelling your contract early. Also, there is likely to be some clauses in your agreement which talk about damages to the asset; non-accidental damage in particular is not likely to be covered and may result in significant costs for your business.

Why choose us?

Leasing can provide you with an opportunity to get a new or improved asset, without affecting your cash levels too much. it is a form of asset finance which is available in most industries. Although similar to hire purchase you have several options once your leasing contract finishes. You can either return the asset, upgrade it or pay off the remainder of the contract and own the asset.

Getting the right leasing deal for your business can be a confusing process and deciding what the best option for your business after the contract is finished, can be a difficult decision. Our experts operate nationwide and can help talk you through the process of leasing and what the best option for your business will be. With direct relationships with the top UK lenders, we can helpy ou secure preferential rates and deals.