"Cash is King" in every business. Poor cashflow is the main cause of business failure. Lease finance allows you to defer the cost of your investment in new equipment, instead of paying a large capital outlay up front. Try our simple quote calculator.
If you have made a decision to invest in new equipment, then the odds are you have already weighed up the benefits this technology will bring to your business - such as improved efficiency, better reliability, or lower repair costs. Delaying that investment because of a lack of capital is a vicious circle. As you delay, so you lose out to your competitors, making further investment harder and harder to fund.
Leasing provides a way of unlocking those benefits and staying ahead of your competitors.
On a typical 3 year lease, the total of the first 2 1/2 years of quarterly instalments will still be less than you would pay 'up front'. That's 2 1/2 years of benefit from your investment that you would not have captured, if you chose to wait until you could pay out of cash. And since reinvesting in new and improved equipment and technology is an on-going thing, it makes budgeting easy to forecast. Match your lease term to the life of your asset, and you will be in a position to keep at the forefront of your industry.
Availability of Credit
Because the leasing company legally owns the assets, it means that you are unlikely to have to provide additional security on the contract and therefore it is easier to raise lease finance than some other forms of funding.
Lease rentals are considered to be an operating cost, which means that it is often possible to deduct them from taxable profits (as a trading expense). However you should always check that the equipment you are getting is eligible before agreeing to a contract.