A business needs equipment, it also needs capital.
us show you how to have one without compromising the
Kennet Equipment Leasing)
Succeeding in a commercial business today
requires that you have the latest technology
-but budgets and up-front costs won't always
allow for this. Leasing is a long established,
tax efficient method of financing a wide range
of capital equipment.
Think of any item of equipment that a business
uses and it can be leased, from communication
systems to combine harvesters, from lawn mowers
to Land Rovers, from key cutting machines to the
kitchen sink. Values range from a few thousand
pounds to several millions of pounds.
Organisations that lease, cover all sectors of
industry - financial institutions, manufacturing
and distribution facilities, retail,
entertainment all make the most of the rewards
Importantly, under these current economic
conditions - Leasing means that you do not have
to use your existing credit lines giving you the
flexibility to manage other short -term projects
or support for you business cash flow.
Leasing is basically a rental agreement giving
you (the lessee) the right to use an asset owned
by the lessor (finance company) for a fixed
period of time in return for regular payments
(rental payments), and is a tried and trusted
method of growing a business without reducing
itís cash flow.
The benefits of
All leasing payments are 100% tax allowable.
Every payment that is made on a leasing
agreement could qualify to reduce a businesses
Corporation Tax bill.
you to purchase equipment that is important to
your business and keep valuable cash in your
bank that may be used for other projects that
are not as tax efficient.
Let the machine
pay for itself
If the equipment
you are purchasing will be a profit centre for
your business it is easy to work out how many
hours / jobs per week that it needs to do to pay
that is being leased is the only security that
is generally necessary. No property is used as
security, however, occasionally the finance
company may need Directors Guarantees for some
Leasing products available:
lease is particularly attractive to companies
that continually update or replace equipment and
want to use equipment without ownership, but
also want to return equipment at lease-end and
avoid technological obsolescence. An operating
lease usually results in the lowest payment of
any financing alternative and is an excellent
strategy for bypassing capital budgeting
finance lease is a full-payout, non-cancellable
agreement, in which the lessee is responsible
for maintenance, taxes and insurance.
Finance leases are most attractive in cases
where the lessee wants the tax benefits of
ownership or expects the equipment's residual
value to be high. The lessee purchases the
equipment upon lease termination at a pre-agreed
amount. The term of a finance lease tends to be
longer, nearly covering the useful life of the
Sales and Leaseback
Sale and leaseback allows a company to raise
money from the sale of assets, while retaining
use of them. The money raised from selling
assets may make the company financially
stronger, but is commonly used, at least in
part, to return capital to shareholders.
The largest and highest profile sale and
leaseback arrangements usually involve land and
property, however a wide range of assets are
sold and leased back. The main requirement is
that they are capital assets that may sensibly
be the subject of a long term lease.