CTS Retail in partnership with Kennet leasing can help you lease your
Epos project allowing you to bundle together all or part of your
hardware, software and services
Why Lease?
Leasing is probably the most popular method of financing
new equipment today. Virtually any item of equipment can be leased from
a PC or coffee machine to a complete shop refit.
Should I pay cash or lease?
You may be able to afford to
buy the equipment outright, but before you make this decision you must
consider the following:
1. All leasing payments are rental payments and as such are an
allowable business expense, therefore if a business is making profits
they reduce the profit by the amount of the rentals you pay each year
which in turn reduces your tax bill.
2. Lease payments are normally the same throughout the lease
contract. This means that increases in interest rates do not affect you
and enables you to budget your cash flow more effectively.
3. Leasing enables you to save your cash for other purchases such
as new stock, staff training, advertising, new business opportunities
and unexpected happenings.
Do my payments increase if Inflation or
Interest Rates rise?
No.
Your monthly payment is fixed at the start of the lease and so are
unaffected by interest rate rises. This enables you to budget your cash
flow more accurately.
As inflation rises, because your payments are fixed the cost of the
equipment reduces in real terms.
Is there a tax benefit associated with leasing?
Yes.
A business wishing to acquire capital equipment has to seek the most tax
efficient way when doing this. All lease payments are treated as an
allowable business expense and therefore attract tax relief for the full
duration of the lease agreement. Your accountant will be able to confirm
this.
How do I make my payments!
All payments are mainly made by Direct Debit on the same
date each month or quarter. Quarterly invoice payments are available on
occasion although an extra charge of 2% is made by the banks for this
facility.
Should I go to my bank?
Using your bank for all your business funding is not a
good practise. If you use all your overdraft facilities you leave
yourself in a vulnerable position to react to any unexpected needs of
short-term borrowing. Your bank may change the interest rate mid-way
through a loan or reduce your overdraft facilities, which can
dramatically affect the cash flow of your business. Sometimes banks will
limit the amount they will lend you without further security such as
taking a charge on your home.
It is not financially prudent to have all you eggs in one basket.
Who Leases?
Nearly every market sector large or small benefits from
leasing, from new start business to large established companies.
How does a lease work?
A lease agreement is a contract between you the customer
and a leasing company. This enables you to use equipment over a period
of time on payment of rentals to the leasing company. With a typical
lease agreement, you make a series of regular payments (usually on a
monthly basis), thus helping cash flow, as opposed to a large capital
outlay for the equipment.
Have the best equipment
You normally
only pay a small deposit with a lease agreement, this enables you to
choose the best equipment available with only a small initial cash
outlay. This enables you to have the best equipment available with the
latest technology and start to enjoy the extra profits this generates
before your next lease payment is due.
