Flexible Finance Options
Simplify and streamline your business equipment acquisition process with our flexible finance options.
Outright Purchase or Lease?
Our objective is to simplify the process of obtaining your new equipment by offering flexible finance options to all businesses. While outright purchase may be suitable for those with available funds, leasing can be a convenient and secure option if you require the equipment immediately instead of waiting for budgets.
Equipment leasing offers numerous benefits for small to medium-sized businesses (SMBs) looking to acquire necessary tools without the heavy financial burden of upfront purchases. Here’s why leasing might be a smart option:
Benefits of Equipment Leasing
1. Preserves Cash Flow
- Lower Initial Costs: Leasing eliminates the need for a large upfront capital outlay. Instead of paying for equipment all at once, businesses can spread payments over time, freeing up cash for other operational expenses.
- Predictable Payments: Lease finance options often come with fixed monthly payments, which makes budgeting easier and more predictable, reducing financial strain.
2. Access to Up-to-Date Technology
- Stay Competitive: Leasing allows businesses to access the latest technology without committing to long-term ownership. This is particularly beneficial in industries where equipment can quickly become obsolete.
- Easier Upgrades: When the lease term ends, businesses have the option to upgrade to newer models. This ensures that you’re always working with the most efficient and advanced equipment without the hassle of selling old equipment.
3. Maintenance and Repair Inclusions
- Reduced Downtime: Many lease agreements include maintenance and repair services, which helps minimise unexpected repair costs and operational downtime.
- No Maintenance Responsibility: Leasing companies often handle equipment maintenance, so SMBs can focus on their core operations without worrying about upkeep or service disruptions.
4. Conserves Credit Lines
- Preserves Capital: Leasing equipment does not tie up credit lines or working capital, which can be used for other vital areas such as expansion, marketing, or hiring. This helps SMBs maintain financial flexibility and meet their other obligations.
5. Tax Benefits
- Tax Deductions: Lease finance options are tax-deductible as an operational expense. Businesses can deduct lease payments from their taxable income, reducing their overall tax liability.
6. Flexibility
- Tailored to Business Needs: Leasing agreements can be customised to meet the specific needs of the business, offering flexibility in terms of contract length, payment structure, and end-of-term options (e.g., returning, buying, or upgrading the equipment).
- Scalability: As your business grows, leasing allows you to easily scale up by adding more equipment without the heavy investment required by purchasing.
7. Preserves Equipment Value
- Avoid Depreciation: Equipment depreciates over time, which lowers its resale value. With leasing, the business doesn’t bear the risk of depreciation, as the leasing company owns the equipment. This allows you to return or upgrade it when it’s no longer needed.
- No Resale Hassle: When equipment is no longer useful, businesses that lease avoid the complications of selling or disposing of outdated assets.
8. Faster Approval and Acquisition
- Speedier Process: Leasing often requires less stringent credit checks compared to traditional loans, meaning businesses can acquire equipment more quickly. This is ideal for SMBs that need equipment urgently to maintain operations or expand services.
9. Supports Business Growth
- Keeps Debt-to-Equity Ratio Low: Since leasing is not considered a liability in the same way as loans, it helps businesses keep a healthier balance sheet, which is important when seeking future funding or investment.
- Immediate Access to Tools: Leasing allows companies to obtain the equipment they need immediately, even if they lack the capital for a full purchase, helping them seize growth opportunities without delay.
Conclusion
Equipment leasing offers SMBs flexibility, access to the latest technology, and financial advantages like preserving cash flow and credit lines. It’s a great option for businesses looking to optimize their operations without being bogged down by the significant upfront costs of purchasing equipment outright.
Regulated by the FCA
As an independent business, we are authorised and regulated by the Financial Conduct Authority (FCA), which assures you of the protection of your finances and our compliance with the FCA’s stringent regulations.
To discuss our finance options in more detail, please provide us with the following details and a member of our team will be in contact to discuss your requirement.