 Financial Options
FCL Computing & Software Solutions will help you acquire the technology you need now, at a price you can afford. We can finance an entire solution - including software, hardware, integration services and even third-party components - all with technology-refresh options.
‘Buy what appreciates, rent what depreciates’
John Paul Getty
Your IT equipment is highly important in the running of your business and will no doubt pay for itself over the period of its use, but the one thing it certainly won’t do is earn your company any money.
Wouldn’t it be better to invest your cash in something that will show a return?
Of course it would, but isn’t leasing simply a costly alternative for those who can’t budget for the full cash price?
Quite simply, no. Leasing is used by the whole spectrum of businesses, from the sole trader to the largest blue chip corporations. There are a number of benefits to leasing, and as such, a variety of reasons as to why companies choose to lease their equipment.
So what are the benefits?
Rentals are 100% allowable against corporation tax
All rentals payable under a lease contract are 100% tax deductible. The equipment is owned by the finance company and so the rentals that you pay are classed as a business expense, and as such are fully tax deductible.
Conserves your capital and improves cashflow.
Should you choose to pay as you enjoy the use of the equipment rather than purchase it outright, the impact on your cashflow is vastly reduced. This will leave you with more money available for perhaps more mission critical expenditure or investment.
Preserves alternative credit lines
In the same way as cashflow is enhanced, the lease option leaves your other lines of credit intact and free for use when you might need them more.
Ease of budgeting
All rentals will be fixed for the term of the lease, so you know exactly where you are at all times, making budgeting simple. The lease term will reflect the useful working life of the equipment, so you will pay for the equipment as you benefit from its use. After all, if it’s not going to earn you any money, why plough your hard earned cash into it?
Gives you the ability to keep pace with technology
As improvements are made in technology, it is possible to upgrade your equipment during the lease. In this way, you don’t have to consider additional capital outlay and the costs associated with disposal.
Provides greater freedom of choice
Very often, capital budgets can dictate when and what you purchase. Leasing provides an affordable rental stream which means that you can have the equipment that you need, when you need it, and at a cost that you can justify.
If you invest your cash into a depreciating asset, you lose the ability to use it to make money elsewhere. Twin this with the tax advantages of leasing and you have a flexible, cost effective method of acquiring your IT equipment.
Grants
As Business Link accredited Consultants, we can advise what grants may be available for your organisation. Please contact us for further details on grants.
Contact us now for a free assessment of what’s
available for your organisation
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