Leasing Equipment - What's your thoughts??

[TamworthPhoenix]

Hi Everyone,

I am new to this forum and I wanted to gain members thoughts on when it comes to purchasing equipment for your business. Would you look at taking up leasing facility that most suppliers seem to provide rather than paying for it outright?

On one side - Cash
I know paying for things through cash would mean I own it and can depreciate it through tax by 25% per year but the cash line is so important to any business.

On the other side - Leasing
I understand that through leasing you are effectively rent the equipment over the term of the lease so you can reduce your corporation tax and then it becomes yours are extra payment.

What is everyone views on the two choices?

[solutions4finance.com]

Hi

If you are thinking about leasing any equipment then please do give me a call.

Leasing is a good way to spread the capital cost of the equipment leaving capital in the bank, and there are certain tax benefits too, but don't accept the lease deal offered by your supplier as the most suitable.

More often than not, suppliers tend to load lease rates so that they make a profit on the lease as well as the equipment, so you pay more for it than if you come to us.

Suppliers that we work with don't take a comission; they make their profit on the sale of goods, we make ours on the finance, and the customer gets an all round better deal.

To chat it through in more detail please call me or contact me through our website.

Good luck

Justin
01626 333 373

[mark611]

leasing seems like the better option but it also depends on the equipment itself; some items depreciate faster than others..