Leasing Equipment vs Buying – Customer Benefits
Ever considered the benefits behind leasing equipment vs buying for your business? Here are 8 key benefits why your business should lease its equipment!
8 Customer Benefits of Leasing Equipment
1. Preserve cash flow
This is the key benefit to why most companies lease. You keep your cash or bank overdraft facility for the working capital requirements of your business.
2. Pay for the equipment as you use it
Would you give a new employee three years salary in advance, probably not. Therefore, why would you pay for their laptop, mobile phone, desk or car upfront.
3. No need to pay the VAT up front
With a lease rental agreement, you pay the VAT when the rental is due. There is no need to pay all the VAT upfront. (With lease purchase / HP lease agreements, all the VAT is paid up front).
4. A new source of funding
Leasing companies are often a new source of funding for a company. You do not have to use existing finance contacts.
5. Tax benefits
Many leasing companies will tell you there are tax advantages as all the rental repayments are allowable against tax. With the new £1m AIA limit coming into effect in January 2019, for the vast majority of SME companies, there are no real tax benefits to a lease rental agreement. Lease purchase agreements may be a better option.
6. The benefit of easier budgeting
Paying a monthly rental makes budgeting an easy process. The rental will cover the cost of the interest and the asset depreciation.
7. Using a revenue budget as opposed to a capital budget
Larger companies often have strict capital and revenue budgets. Rental repayments come under a revenue budget, hence no need to get capital budget approval.
8. Avoids obsolescence
With equipment leasing, the rental term is normally the same as the equipment life. Many companies will lease equipment then just upgrade it at the end of the lease term.
Leasing Equipment – What equipment can WestWon lease?
WestWon lease a range of assets to equip your business. Whether it is IT equipment, office furniture to vehicle leasing WestWon can lease it all!
Get In Touch
Enticed by the benefits of leasing equipment vs buying? Give us a call on 01494 611 456 and have a quick chat with the team!