There are two types of finance options available for IT acquisition. Lease rental and Hire purchase. We source our finance options through TeleLease Asset Finance.
The perfect solution for businesses to purchase machinery &
Rental offers considerable cash-flow and tax advantages.
Available from one rental payable in advance and lease periods
of up to five years, new
equipment and machinery can be acquired without capital expenditure.
VAT on the cost of the equipment or machinery is paid and
recovered by us so there is
no call on your cash. In turn VAT is charged on lease rentals as they arise at
the prevailing rate, a cost that can be recovered in full by VAT registered
Lease rentals are treated as a fully allowable business expense
so can be offset
against profits to reduce any Corporation or Income Tax liability.
What happens at the end of the lease? At the end of the fixed
term you will be offered the option to either gain title to the
goods in return for a nominal fee (usually one rental) or enter
into a secondary term until such time as you no longer require the
equipment or want
to take title.
What type of equipment is suitable?
Most machinery and equipment can be financed in this way
including computers, audio
visual, dental, medical, scientific, engineering, production and plant.
Typically a deposit is paid at the beginning of the agreement then the balance spread over a fixed period, anything from 12 to 60 months. Hire Purchase interest can be fixed or variable, depending upon the size of the advance and your specific circumstances.
Title to the goods passes to the hirer when the final payment is made making it ideal for businesses that want to keep it simple and ultimately own the goods at the end of the agreement.
From a tax perspective Hire Purchase is good news. The capital cost of any qualifying assets will attract writing down allowances or be offset against the annual investment allowance and the interest element of the loan will also be allowable as a business expense.
More help is available now
Contact us today for an informal discussion and to find out how we can help.
Call our Birmingham office now on 0121 270 6591