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If you are a business customer looking for the best option to fund the new equipment you are buying, there’s a good chance that you can finance it through Home Leisure Direct Ltd.
Initially, it may seem more advantageous to pay for your new products using traditional methods, such as working capital or a bank loan. However, an increasing number of our customers are taking advantage of our competitive and flexible leasing facility.
Some of the benefits of our leasing facility include:
You keep all the revenue. Unlike in traditional rental agreements where you share profits with the supplier, you keep 100% of the revenue from the machine with our leasing agreement. At the end of the agreement you will have the option to give the product back and upgrade to a new model, or keep the product and own it outright.
One repayment over numerous products. The leasing agreement covers the total amount; choose your products and consolidate the payments into one, easy regular leasing fee. Leasing periods are typically set to match your budget: between 24 and 60 months.
Minimal initial outlay. A zero-deposit finance agreement can be provided, reducing your outlay at the start of the agreement.
No hidden price increases. Payments made throughout the leasing period will not be affected by interest rates, and will thus avoid the impact of inflation.
Tax efficient. Because the leased product is not considered to be an asset, all of the leasing fees paid in any year can be fully offset against your taxable profits for that year.
Preserve your working capital. Paying in this way allows you to preserve capital resources that could serve you better if devoted to business development and other operational needs.
Product refresh. Any additions and upgrades that you may choose to make to the order during the leasing period can be factored in throughout the life of the agreement by a co-term agreement, which can finish at the same time as the original.
One of our Biggest Funding Partners Says:
“Why lease?"
As the old adage goes: cash is king. In fact, we have always believed that those companies which always treat cash, or to be slightly more precise capital, as a scarce resource (even in times of plenty) are typically more successful over the long term than those that don’t. It’s for this reason that businesses of all colours and creeds lease an even wider variety of business assets - from aeroplanes to microcomputers, furniture, time clocks, lab instruments, medical equipment, wheelie bins, fairground rides and telecommunications equipment is just scratching the surface. You name it. A lot of people lease it.
They lease to conserve capital. They lease because they can make more money from what they buy than what it costs them, finance costs included. And they lease so they can pay while they use it instead of before.
When companies lease they don’t need to wait to create the capital to purchase or acquire the asset. They use the lessor’s cash and let the productivity gains or cash savings generate the capital to cover the ongoing costs.
Businesses which lease make fewer compromises on what they acquire and can generally afford to buy more.
Finally, whilst your mother may have told you that it may not always be wise to follow the crowd, there is a reason why every single FTSE 100 company and all of the major accountancy firms lease. It makes sound financial sense.”
In Brief – Leasing:
• You get immediate access to the product but pay for it on a monthly basis, thereby easing your company’s cashflow.
• Leasing companies effectively lend you the total cost of items leased.
• Almost anything can be leased: cars; property; IT and telecommunications equipment; machinery; printers and photocopiers, or even furniture.
• There are various tax benefits – for example, you can deduct lease costs from your taxable income.
• It can take mere days to organise.
Pros:
• Cash that would have been spent on assets can be released to finance growth.
• You don’t own a depreciating asset and can return it, offering flexibility.
• You can lease almost anything from company cars through to computers, phones, photocopiers, machinery and furniture.
• You can access the latest equipment and may receive maintenance and support as part of the leasing deal.
• There are tax benefits. For example, you can claim back VAT on lease payments and you can also deduct the lease costs from your taxable income.
Cons:
• If you lease the item for a long-term period then you’ll probably end up paying more for the asset than if you buy it outright.
• Leased items are not classed as business assets and so can’t be used as security.
All credit applications are subject to status and satisfactory credit clearance.
Home Leisure Direct Ltd. is regulated by the FCA.
All leasing runs through Satellite Leasing Ltd.
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