As a nationwide leasing company covering Northern Ireland, WestWon was interested to find out more about nibusinessinfo.co.uk
This free service offered by Invest Northern Ireland, is the official online channel for business advice and guidance in Northern Ireland. It contains essential information, support and services for you and your business – whether you work for a large organisation or are on your way to starting up.
Amongst the useful content on the site is a section on the benefits of leasing. According to NI Business Info asset finance allows businesses to acquire the equipment and assets they need in order to operate that they may otherwise be unable to afford. It can also free up working capital for use in other areas of your business and save you from having to take out a large loan to buy equipment outright.
There are two main forms of asset finance:
- Leasing – renting it over a period in return for fixed rental payments.
- Hire purchase arrangements – an initial deposit is paid towards the cost of the asset and the balance is then paid in instalments over a period of time. At the end of the hire purchase period, you would make a final payment and gain ownership of the asset.
You should think about leasing or renting equipment that has high maintenance costs, can quickly become outdated, or is only used occasionally.
There are several advantages of leasing or renting equipment:
- you don’t have to pay the full cost of the asset up front, so you don’t use up your cash or have to borrow money
- you have access to a higher standard of equipment, which might be too expensive for you to buy outright
- you pay for the asset over the fixed period of time that you use it, which helps you budget for the future
- as interest rates on monthly rental costs are usually fixed, it is easier to forecast cashflow
- you can spread the cost over a longer period of time and match payments to your income
- the business can usually deduct the full cost of lease rentals from taxable income
- if you have not bought the asset outright, you won’t have to worry about any overdraft or other loan taken out to finance the purchase being withdrawn at short notice, forcing early repayment
For more information about leasing deals for Northern Irish businesses or to obtain a quote for equipment leasing, please contact WestWon on Tel: 01494 611 456