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Saves working capital
If you buy equipment outright your capital becomes tied up in a
depreciating asset, preventing you from investing in other projects,
whereas financing the equipment allows you to save resources for new
business opportunities and unexpected needs.
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Easier budgeting
Payments are fixed throughout the agreement and are not affected by
inflation or changes in interest rates. You can accurately plan for
lease payments in advance, helping to simplify budgeting.
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Maintains credit lines
If you lease the equipment, existing credit lines with your bank remain
intact. You therefore retain the flexibility to use your bank's
facilities in the future.
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Upgrade options
Leasing allows your business to keep up with changes in technology and
respond to any market or competitive pressures. You can add to or
upgrade your original installation to accommodate changes in your
requirements.
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Tax efficient
If you pay corporation tax, leasing payments may be deducted from
taxable profits - at the corporation tax rate that you pay, which
reduces the net cost of leasing the equipment.
If you are a sole
trader or partnership you will get relief of up to 40% depending on your
tax rate suffered.
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Convenience
Your payments can be made by direct debit. You can avoid unnecessary
time organising payment for equipment rental invoices.
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100% financing
A deposit need not be a prerequisite to the finance arrangement. You
simply make regular payments throughout the life of the agreement.
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Regular payments
Leasing helps you spread the cost of using equipment over a pre-agreed
period by making regular, monthly or quarterly, payments instead of a
large capital outlay.
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