Many companies in the UK already use lease finance for a wide range business critical equipment, from photocopiers to forklift trucks, but leasing options for security / fire and commercial industry are becoming more and more popular, particularly in today’s economic climate.
As systems with a depreciating value that bring no direct income benefit to a business, these systems are often overlooked or pushed to the bottom of the priority list when capital expenditure projects are discussed.
In doing so it can inadvertently leave companies vulnerable to security breaches such as theft or vandalism, or business loss due to fire damage.
Lease rental of fire and security systems can be a good way to finance a new system or an upgrade. Because it is based on a fixed, usually monthly, cost over the life of the system (and often including ongoing maintenance support) it can allow a business to act faster to put a new system in place than following the usual internal budget processes involved for a large capital expenditure. This may also mean that a better, higher specification system can be afforded.
By using lease finance this enables companies to capitalise on the latest technologies, keep staff and assets safe, and ensure compliance with all current UK legislation.
Benefits of leasing
There are many reasons why leasing can be an attractive alternative to outright purchase, typically it helps with cash flow to avoid having to make an upfront investment, but it can also be the convenience of being able to easily upgrade equipment.
Preserves Working Capital – repayments are fixed, so you can keep cash reserves in your business for continued growth.
Budget Control – budget more accurately with predictable, regular fixed payments for the duration of the contract so you know exactly what and when you are paying.
Protects Other Lines of Credit – existing credit lines, such as bank overdraft or other facility, remain intact for growth or uncertain times.
No Major Upfront Costs – no significant outlay or investment necessary; usually just a first rental is taken by Direct Debit to secure your finance
Tax Efficiency – 100% allowable against pre-tax profits; payments in any year can be fully offset against taxable profits for that year, lowering your Corporation Tax Liability
Access to the latest technology – service and maintenance can be incorporated within agreements
Upgrade & Add – adding to or enhancing a system during the rental period can be incorporated through the term of a lease rental. This can bring a reduction in the need to wait for new budget allocations before upgrading and other additional spends.
System Life – fire and security technologies are always evolving and advancing. Lease rental can remove or minimise equipment disposal issues and incorporate scheduled system upgrades and component replacements within your systems management programme.