Lease Finance
Lease Finance offers you a cost effective, tax-efficient method of funding IT projects and procurement whilst retaining cash in your business and, as payments are fixed, allows you to budget effectively.
We work in partnership with Plus Finance Ltd, the UK’s market leader in offering finance packages to businesses buying furniture or refurbishing their working environments.
Lease Finance is a well established form of finance for other business assets (eg company vehicles), but the benefits apply equally to IT. Using a lease finance solution means you can move ahead with projects straight away without having to wait for capital to become available, and we can include soft costs such as service, supplies, installation and warranty.
The Benefits of Leasing
Maximise cash flow Leasing means no large up-front payment so you retain cash in your business, freeing up valuable working capital and allowing you to invest your cash in something that is revenue-generating rather than a work environment which typically isn’t.
Fixed payments for accurate budgeting and effective forecasting Take the strain off your cashflow and budget for one monthly fixed cost for your total requirements, whilst eliminating unexpected variations such as increases in interest rate.
Spread the cost with monthly payments Make the most of your budget by spreading the cost over 3 or 5 years and acquire the solution that meets your needs fully, rather than that which your budget dictates.
Payments are 100% tax allowable Lease rental payments are 100% allowable against taxable profit. As the only method of finance offering these tax savings, leasing is the most tax efficient method of financing IT. In some cases it can even work out cheaper than paying cash!
Existing bank credit lines unaffected Leasing leaves your bank credit lines intact and free for other business development or investment purposes.
Alternative Finance Options for the Education Sector.
Local Authority Schools and Academies are bound by the guidelines laid down by the Department for Education stating that schools are not allowed to commit to any borrowing. The only product available is an Operating Lease which is classified as a rentaland all the risks and rewards of ownership remain with the Lessor.
Through our partner Plus Finance, we are pleased to offer their specialist operating lease product for state funded Schools and Academies, whilst we offer a range of funding options are available to Colleges, Universities and
Independent schools.
Download the Education Leasing Factsheet
Operating Lease Facts
- An Operating Lease is commonly associated with high value items with a long lifespan. At the end of the lease, the equipment will still have a value known as a residual value, which can then be sold or leased again.
- As there is a residual value on the item, asking a customer to have a lease for full value of the item would not be cost efficient for them and this is where an Operating Lease comes into play.
- An Operating Lease takes the fair market value of the equipment and subtracts the residual value. It is this amount that the lease rentals are then calculated on and thereby reducing the value of the lease rentals.
- The residual value itself can be up to 30% of fair market value.
- Lease payments are fixed for the period, offering easier budgeting.
- The equipment itself cannot be leased for the full lifespan of the equipment.
- Monthly payments with no deposit helps manage and protect cashflow.
Find out how much you would pay with our QUOTE CALCULATOR
Paypal Credit
As an alternative to Lease Finance, you can use Paypal Credit or apply for Business or Education finance.