| Who Can Lease? |
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- Sole Traders
- Partnerships
- Limited Companies
- PLC Companies
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- Public Sector Companies
- Professional Practices
- Charities
- Schools & Colleges
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| Leasing Vs. Borrowing |
Leasing
- Minimal down payment.
- Primary period to match asset depreciation period.
- Leasing rental 100% deductible against tax.
- VAT is paid each month on the rental and is therefore effectively deferred.
Borrowing
- Cash flow impact.
- Capital allowance restriction means that effectively it may take up to 10 years to ultimately offset the allowances.
- Fixed deposits can be as high as 25% plus all VAT due.
- May restrict further borrowing from bank lines.
Benefits of Leasing
- Payments are considered operating expenses and are usually 100% Tax Deductible.
- Provides 100% financing.
- No Up-Front Sales Tax.
- Improves Cash Flow vs. Traditional Bank Financing.
- Allows for off balance sheet financing.
- Preserves Credit Lines.
- No Down Payment.
- Simplifies Book keeping Creating One Monthly Payment.
- Promotes Greater Purchasing Power.
- Makes the Decision to Act Much Easier.
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