Why are so many UK companies choosing to lease their equipment rather than buy it? It all comes down to the benefits of leasing for the customer and what the business can do for them. In this blog below are 6 reasons why leasing is a better choice over buying company equipment.
1. Preserve existing cash flow
One of the major reasons why companies choose to lease is for this reason. You can keep your cash for the working capital requirements of your business.
2. Pay for the equipment as you go
Monthly repayments give you flexibility with the equipment. Would you give a new employee three years’ salary in advance? No, you wouldn’t. Monthly repayments give you the ability to spread the costs and keep your own cash within your business.
3. Offers a new source of funding
Leasing companies are often a new source of funding for a dental company. This also means you won’t have to use existing lines of credit.
4. Important tax benefits
With the £1m AIA (Annual Investment Allowance) for most SME companies, there are no real tax benefits to a lease rental agreement. Lease purchase (HP) agreements may be a better option. Not to mention the new Super Tax deduction for Limited Companies.
5. Easier budgeting
Paying a monthly rental makes budgeting a lot easier for your business. The payment will cover the cost of the interest as well as the asset depreciation.
6. Keeps it useful
With equipment leasing, the rental term is usually the same as it’s useful life. Many companies will therefore lease equipment and then upgrade it at the end of the agreement.
If you would like any more information on what some of customer benefits to leasing are here at WestWon Dental, then please don’t hesitate to get in touch with us on 01494 611 456 or alternatively email us on email@example.com