Why Businesses Lease?
Business customers are faced with three choices when buying equipment. Do they pay using their own cash, with a loan or should they lease?
By paying Cash upfront an either or choice for essential equipment is created. What else could the cash be used for?
Loans are hard to get. They require meetings with the bank and are usually for large expenditures, and the administration can be complex.
Leasing benefits business by giving them the products and equipment they need at an affordable fixed quarterly cost. Leasing allows the customer to quickly obtain the equipment they need for their business with minimum administration and impact on cash budgets.
The key benefits of leasing:
- No Large Upfront Costs – Most business 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 ensures a fixed manageable quarterly payment. Irrespective of interest rate rises. The low quarterly cost of rental is fixed enabling accurate budgeting.
- Technology Upgrades – Leasing allows the customer to take advantage of technology improvements at a time of their choosing and at a reasonable cost.
- Flexible Payment levels – businesses can choose the payment level. Options range from 3 to 5 years. The customer selects the right option so they can have the technology they need at the price they are comfortable with.
- Tax Efficient - If you pay corporation tax, leasing your photocopier can be particularly attractive. Leasing payments may be deducted from taxable profits, which reduces the net cost of leasing you photocopier.