LEASING FINANCE

Leasing finance is for acquiring all kinds of equipment (heavy machinery, plant, telephone systems, office equipment, catering equipment, cctv systems, computers, software, websites, commercial vehicles, office furniture, mezzanine floor, etc).

Types of leasing finance:

- operating lease

- finance lease (lease rental)

- hire purchase

Leasing helps businesses to acquire assets through leasing (leasing rental payments are 100% tax deductible as operating expenses).

Leasing finance companies partner with vendors/suppliers to offer leasing to their clients as sales aid to help them to purchase equipment. With leasing, vendors/suppliers typically can increase sales figure about 6%.

  

83% of businesses in the UK use leasing to acquire assets.

In the first half of 2006 new leasing business rose by 8%; lease finance for plant, machinery and equipment was up 12%.

Leasing can play a role for all types of business. Key is the fact that leasing can protect your cash and enable you to grow and develop

 

Use of Equipment Leasing– you do not pay your employees in advance: they are paid as they contribute. It should be no different with business equipment. Leasing enables you to pay for your equipment as you use it.

Protection from Obsolescence - today's equipment is technologically obsolete within 3-4 years, due to advances in technology. This is especially true with computer hardware.

Fixed Payments – monthly/quarterly payments are generally fixed for the entire term of the lease. This is good in times when many financing transactions have floating rates. Knowing in advance what your payments will be enables you to manage your budget intelligently.

Easier Cash flow Forecasting- leasing, which is simply £'s per month financing, helps an equipment user fit a monthly payment into their budget. Because payments are fixed, users can intelligently budget for the future.

Cash Flow is King - because of the sizable cash outlay involved in purchasing new equipment, many businesses lease to conserve capital. Money that could be used to buy inventory, advertising, and hire additional personnel are better spent rather than purchasing equipment that is worth less as time passes. If you are in a business where you have important alternative uses for cash on hand, leasing always wins out in the "lease vs. buy" analysis.

Positive Cash Flow -an equipment lease can generate positive cash flow to respond to new business opportunities. The profits generated from the productivity of the equipment are usually greater than the lease payment

Longer Terms - many banks only lend money short term, usually 12 to 36 months, with Technology Leasing Lease Facilities the term can be as long as 60 months, and in some cases even longer.
 
No Down Payment - most traditional financing options require a sizable down payment.

100% Financing -traditional methods of financing usually do not include "soft costs" such as installation, freight, maintenance, training. Leasing transactions include all of these thereby allowing you to finance the total package.

Flexible Payments –we can find ways to structure lease transactions to fit the needs of our customers. This gives you the opportunity to make the most of lease structuring variables as to the number and amount of advance payments, purchase options and seasonal payments.

Simpler Than Bank Loans -our lease facilities and procedures are specially designed to take the red tape out of financing capital equipment for business.

Tax Benefits -just as businesses have done for years, a lessee can usually deduct their monthly lease payments as an operating expense. This clearly reduces the net cost of the lease. It's always best to talk to your tax accountant first; however, leasing is generally advantageous to most businesses.

Additional Lines of Credit -when equipment is purchased with borrowed funds, credit lines with a lender are reduced. When equipment is leased, a business has, in fact, established an additional line of credit with its funding source.