5 Reasons you should use Asset Finance and Leasing

15/09/2014
5 Reasons you should use Asset Finance and Leasing

Asset finance and leasing is an excellent way to boost your company’s competitive edge by cheaply providing you with access to the resources and equipment that you need to grow your business. Whether you’re an SME or a long established firm, this can offer your organisation real benefits.

 

Buying equipment or assets for your business can be prohibitively expensive, but it’s not just the cost of purchase that needs to be considered, there’s also the cost of depreciation on your balance sheet to consider.

This is a simple and thrifty solution that ensures you can always have the very best vehicles, kitchen appliances, computers, mobile devices or anything else that your business needs, with far fewer of the risks and costs of ownership.

 

Here are our top 5 reasons to use asset finance and leasing.

 

  • Lack of Debt 

 

    1. Making use of asset financing can help you to keep your other financial options open. As operating leases, which are used to acquire assets or equipment on a short to medium term basis, are classed as an expense. Therefore, using asset financing will not affect your credit rating, leaving you the room to borrow money from other sources if and when you need to.
  • Stronger Cash Flow  

 

    1. Leases are a great way to free up your company’s cash flow and help keep your monthly costs under control. As most operating leases allow you to pay via small and regular monthly payments, you’ll be able to invest the money you save back into your business and the services that you really need.
  • Clear Budget Management  

 

    1. With fixed monthly fees for a period of time that has been clearly defined from the outset, asset finance and leasing will ensure that your company’s budget management is far more straightforward, freeing up precious time for other projects.
  • Tax Benefits 

 

    1. Using asset finance and leasing is an excellent way to reap tax benefits. As lease payments are defined as expenses by HMRC, it is possible to use untaxed money to pay for them, which will save you money in the long term.
  • Lease Specific Bonuses

 

  1. When you are negotiating a lease with a company, it is important to remember that it is possible for lease specific bonuses to be written into the contract. If you’re leasing equipment that requires regular servicing in order to operate at its best, make sure that equipment servicing is included in the lease. Variable monthly payments are also available with some packages and are a great option for businesses whose cash flow fluctuates.

When you a negotiating a lease with a company, it is important to remember that it is possible for lease specific bonuses to be written into the contract. If you’re leasing equipment that requires regular servicing in order to operate at its best, make sure that equipment is included in the lease. Variable monthly payments are also available with some packages and are a great option for businesses whose cash flow fluctuates.

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