Benefits of Leasing your Security Systems
WHY LEASE?
Who Leases?
Practically every sector of the British economy takes advantage of leasing. Organisations that lease can be found throughout industry and commerce, in businesses large and small, commercial and non-commercial. A recent survey found that around 8 out of 10 accountancy firms and 85% of the Times Top 100 UK companies lease equipment.
How does it work?
Leasing is a contract between a leasing company (lessor) and a customer (lessee), giving the customer the use of the equipment in return for payment of rentals over an agreed period. The lessor retains ownership of the asset, which means that the customer pays to use the equipment over a set period of time - typically the agreed working life of the equipment.
IT MAKES SENSE TO LEASE
Saves Working Capital
If you buy equipment outright the capital invested, in effect becomes tied up in a depreciating asset. This means it cannot be used for other projects. Leasing equipment on the other hand, allows you to save resources for other purposes such as new business opportunities, responding to unexpected problems, investment in product development or marketing.
Easier Budgeting
Payments made throughout your lease arrangement are not affected by changes in interest rates. So unlike a bank loan or an overdraft you can accurately plan for lease payments in advance. This helps simplify the budgeting process.
Future Credit Line
If you lease the equipment existing credit lines, such as arrangements with the bank, remain intact. This gives you the additional flexibility to use these arrangements if necessary in the future.
Upgrade Offers
Leasing allows your business to keep up with changes in technology and respond to any market or competitive pressures. Your original installation can be altered, either during or at the end of the lease to accommodate unforeseen changes.
Tax Efficient
If you pay corporation tax, leasing can be particularly attractive. Leasing payments may be deducted from taxable profits, which reduces the net cost of leasing the equipment.
Convenient Regular Payments
You make leasing payments by direct debit. This helps you avoid unnecessary time organising the payment of equipment rental invoices. When you lease you make a series of regular, usually quarterly payments instead of a large capital outlay.
