Why businesses lease!

No Large Upfront Costs – Most businesses earn revenue over time, but have to pay for equipment up-front, in one go. Why pay out in one lump sum when with leasing you can pay a small amount every quarter? Businesses prefer to pay as they use!

Cash – Cash is king and it makes sense to use it for expansion or critical business needs. Leasing for office technology preserves precious cash. Budget Management – Leasing with our preferred and trusted finance partner Grenke ensures a fixed manageable payment. Irrespective of interest rate rises. The cost of rental is fixed enabling accurate budgeting. Preserving Credit Lines – Grenke offers leasing from £500 upwards. With Grenke you can preserve your existing bank lines and optimise your use of commercial credit sources.

Technology Upgrades – Leasing allows the customer to take advantage of technology improvement at a time of their choosing and at a reasonable cost. By contrast a business that has owns IT equipment can only upgrade by reinvesting and disposing of the existing asset.

Flexible Payment Levels – Businesses can choose the payment level. Grenke options range from 1 to 5 years. The customer selects the right option so they can have the technology they need at the price they are comfortable with.

100% Tax Allowable - Finance Lease rentals are 100% allowable against pre-tax profits. This means that the total cost of your purchase- both capital and interest- can be offset against tax during the lease period, with the leasing payments deducted as a trading expense.

Example:

  • Cost of Solution £5000.00
  • 3 Year Finance Lease @ £163.00 per month
  • Total Payable is £163.00 x 36 = £5868.00
  • You pay £868.00 interest over 3 years
  • Leasing is 100% tax deductable so assuming tax rate is 24%
  • £5868.00 x 24% is £1408.32
  • The reduction in tax to be paid (£1408.32) more than covers the interest charge (£868.00)

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    Why lease