Take The Pain Out Of Acquiring New Equipment

Financial pain. It's financial pain that often causes the most headaches. Do you buy outright? Do you buy now, or later when the cash flow is less of a problem? Maybe even second-hand as a last resort? But you want new equipment. And you want it now.

There is a logical answer. Lease it, ideally from a reputable equipment leasing company. Leasing is the simplest and most common type of equipment finance. It's become the most efficient form of finance for business, simply because it is tax efficient. It can be used for an enormous variety of assets, even those with little residual value.

The way leasing works is that VAT is paid on each rental - usually monthly payments via direct debits. Therefore you spread the costs over the rental period, typically three to five years. During that time, the titles of the goods are retained by the lessor, through the duration of the lease period. Your payments are shown as an operating cost, which gives greater tax advantages over making an outright purchase. And as an added bonus, usually small or no deposits are required by the lease company.

Equipment leasing is popular from the supplier's point of view as well. They know that leasing is a great way to encourage repeat business. And the customer will benefit from building a rapport with suppliers that know your marketplace inside out. The salesperson will appreciate dealing with you because he can maintain contacts and relationships. He'll always have a 'foot in the door' when he can talk about new developments and explain to his customer how easy it is to add them to the leasing package, without significantly greater costs over the lease period. The customer gets the maximum benefits of acquiring additional products, with little financing hassle, by simply arranging an add-on lease. Obtaining equipment by leasing also enables the customer to upgrade regularly, so that the company isn't left trailing behind in the face of new technology. Products can easily be added to the package at any time to suit his business needs.

Financially, the benefits of monthly direct debits cannot be underestimated. A simple direct debit can enable just one rental to include not only equipment, but also IT and software needs as well, plus ancillary costs like consultancy, installation, training and maintenance. Everything you need to keep your business bang up-to-date, without all that worry about money. Oh and you don't have any headache pills to pay for either.

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