EQUIPMENT LEASING

Equipment Leasing is an arrangement that enables a business to enjoy the use of an asset plus the many benefits of ownership. BIF buys the asset and, in return for a regular monthly or quarterly rental, allows the customer to use it for a pre-agreed period. The customer (lessee) may offset the net of VAT lease rentals against the company's taxable income, thereby reducing its tax liability. Those registered for VAT may reclaim the VAT on rentals.

This is a medium term form of finance whereby businesses can obtain the use of modern up-to-date equipment and spread the cost of financing them over an agreed term.
During the term of the lease, the business pays an agreed fixed rental which is comprised of both capital and interest. This rental is (subject to current legislation) totally allowable against the business's taxable income, which may reduce or defer its tax liability.

Benefits of Equipment Leasing

• Fixed rentals allow accurate budgeting and forecasting and are a protection against interest rate fluctuations
• Leasing allows the use of modern up-to-date equipment which can generate increased profitability for the business with minimum cash outlay
• Leasing helps to preserve cash resources and bank credit lines, thus maintaining liquidity
• A Lease Agreement can be structured to suit the cash-flow/seasonality of the business
  

What type of Equipment can be leased?

• Mobile Plant and Equipment
• Computer Equipment
• Industrial Plant
• Production Line Equipment
• Printing Equipment
• Communications Systems
• Agricultural Equipment

For more information, please contact us on 0191 488 8445
or use this email link. office@hrcgroup.net