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The Benefits of Lease Rental Finance

You don’t have to use cash or bank loans to fund your office fitout or furniture project! Instead of tying up large amounts of money, a smarter alternative for more financial flexibility is to use a Lease Rental facility and keep your cash available for higher returns elsewhere.

Lease Rental is a tax efficient and cost-effective method of achieving your ideal workspace whilst retaining cash in your business. It is a well-established form of finance for other business assets such as company vehicles – but the benefits apply equally to office fitout, and furniture projects.

 

The benefits of Lease Rental to your business

  • Maximise your cash flow. Lease Rental means no large up-front payments, so you retain cash in your business, freeing up valuable working capital.
  • Fixed payments allow for accurate budgeting and effective forecasting. Payments are fixed for the duration of the lease period, making budgeting simpler and eliminating nasty surprises, such as increases in interest rate.
  • You can spread the cost with monthly or quarterly payments over two to five years, so you can be using your office development while you pay for it.
  • Spreading the cost allows you to achieve the project specification of your choice, avoiding short term compromises based on budget. Since payments are an operational expense, your capital expenditure (CAPEX) is unaffected.
  • Lease Rental payments are 100% allowable against taxable profit. As the only method of finance offering these tax savings, Lease Rental is the most tax efficient method of financing a fitout. In some cases, it can even work out cheaper than paying cash!
  • Lease Rental is quick to arrange, which means you can move ahead with projects straight away. No having to wait for capital to become available or for the bank to decide!
  • Existing bank credit lines are unaffected. Lease Rental leaves your bank credit lines intact and free for other business development or investment purposes.
  • By matching the lease of the fitout to the lease on your building you can spread the cost of fitting out your workspace over the same period as your building lease, or up to the break in the lease.
  • Lease Rental packages can include all aspects of the fitout including servicing, installation, warranty and even dilapidation costs. Your package can even include other office equipment such as computer hardware and software, telecoms, security systems, audio visual equipment and photocopiers.
What is Leasing?

Leasing is a smart method of finance that allows you to ‘rent’ your development over 3-5 years and offset the payments against taxable profit. You can pay over 2, 3, 4 or 5 years to suit your budget and / or the term of the lease on your building. A lease agreement is a contact between you and the finance company: they pay the supplier’s invoice, and you make regular payments to them until the end of the lease period.

What is the difference between Lease Rental and Lease Purchase?

Lease Rental

  • Payments are 100% tax deductible.
  • Lessor claims the capital allowances, not you.
  • VAT is payable on each rental and reclaimed in the usual way.

Lease Purchase

  • All VAT is paid in advance.
  • You claim capital allowances as per cash purchase.
  • At the end of the period, the assets automatically become your property.
  • Payments are NOT 100% ALLOWABLE.
Can my business lease?

Any company with a registered UK office can lease, from start-ups or small SMEs to Limited Liability Partnerships (LLPs), Limited Companies, PLC’s and not-for-profit organisations. Leasing is a very popular method of financing business equipment. It is estimated that 98 of the UK’s top 100 companies lease capital goods.

 

What can I lease?

Typically, we can arrange finance for everything office-related including work tables, seating, storage, partitioning, cabling, flooring, air conditioning systems, ceilings, lighting, and even staffroom kitchens. Our lease packages can also encompass other aspects of the office environment including computer hardware and software, telecoms, audio visual equipment, security systems and photocopiers. Plus Finance Ltd can arrange lease finance across a wide range of outlets such as bars, cafés and restaurants, as well as hotel or leisure industry refits.

How much can I lease?

The minimum lease value is £1,000 (ex. VAT), there is no maximum amount.

Are the rates competitive?

Absolutely! As specialists in fitout and furniture Plus Finance Ltd partner with funders for these types of projects and as such are confident that their rates are some of the most competitive in the market for this type of project.

How long does the process take?

Once we are in receipt of all the necessary information, Plus Finance Ltd can approve in as little as 24 – 48 hours.

What happens at the end of the lease?

The essence of a Lease Rental agreement is that you don’t own the assets, so the rentals become 100% tax deductible. At the end of the term, you can choose to retain use of the assets for an indefinite period via a one off “lifetime” cost. Please contact Plus Finance for full terms and conditions.

What happens if I don’t keep up the payments?

As in any contract, your assets are at risk if you don’t keep up the payments. If you fail to pay the finance company as agreed, then steps will be taken to remove the leased goods.

Request a quote

If you have a specific requirement and would like to speak directly with Plus Finance Ltd, please contact:

E-mail: sales@plusfinance.couk
Telephone: 01494 783773
Web: www.plusfinance.co.uk