Leasing

BENEFITS OF LEASING CATERING EQUIPMENT

Latest figures suggest that leasingcatering equipment is increasingly the more popular option for businesses wanting to acquire the equipment they need to run their business.
Nine out of ten Local Authorities and nine out of ten Chartered Accountants throughout England and Wales acquire some form of equipment in this manner.

The primary advantage of catering equipment leasing is that it allows you to acquire assets with minimal initial expenditures. Because catering equipment leases rarely require a down payment, you can obtain the goods you need without significantly affecting your cash flow.

Another financial benefit of leasing catering equipment is that your lease payments can usually be deducted as business expenses on your tax return, reducing the net cost of your lease. In addition, leases are usually easier to obtain and have more flexible terms than loans for buying equipment. This can be a significant advantage if you have bad credit or need to negotiate a longer payment plan to lower your costs.

Catering equipment leasing also allows businesses to address the problem of obsolescence. If you use your lease to attain items that are subject to becoming technologically outdated in a short period of time, such as computers or other high-tech equipment, a lease passes the burden of obsolescence onto the lessor, as you are free to lease new, higher-end equipment after your lease expires.

WHY LEASE CATERING EQUIPMENT ?

  • All lease payments made under lease agreements are fully tax deductible: By leasing rather than buying equipment you can offset the full amount of 100% of each years lease rental payments against corporation tax, instead of an annual tax allowance of only 25% on the capital value of the equipment, which diminishes each year
  • Easy upgrade to maintain pace with constantly improving technology: You can take advantage of this latest technology by simply upgrading the catering equipment at any time during the contract with outstanding balances included in the new rentals.
  • Fixed prices mean easy budgeting: Fixed rentals are convenient in that they simplify budgeting and administration.  Payments can be made on either a quarterly or monthly basis and can be structured to fit in with specific budgetary needs.
  • Immediate use of catering equipment without capital outlay: Payments match your usage!  With leasing you can spread the cost of the catering equipment over its working life.  As rentals are based on the cost of the equipment at today’s prices but paid for by tomorrow’s income, they represent a real safeguard against inflation.
  • Using leasing as another line of credit allows working capital to be released for other projects: Leasing offers simple and quick decisions.  It also leaves existing credit lines and overdraft facilities undisturbed and unlike bank facilities cannot be withdrawn at short notice.