Equipment Leasing

Acquire the latest technology
without the upfront cost

Helping Business acquire the Latest
Technology without the upfront Expenditure

Equipment Leasing

Acquire the latest technology
without the upfront cost

Helping Business acquire the Latest
Technology without the upfront Expenditure

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80% of the FTSE 500 use leasing for their IT and Telecoms equipment because of the benefits it brings to their business

What is Leasing?

Leasing is quite simply the process of acquiring equipment via third-party finance and paying for it in manageable monthly amounts over a pre-agreed term.

It’s like a loan, only the loan is secured by the assets you have acquired, which allows for a lower rate of interest.

We work with a number of Suppliers and third-party lenders, enabling you to get financing for the equipment you need today, without laying large sums of money upfront.

By paying for the equipment monthly you will be preserving your hard-earned working capital and not tying money up in ever-depreciating assets.

Most importantly, Leasing allows you to invest your money in more profitable activities – which enable your business to grow.

What are the Benefits?

Putting your hard-earned money to better use is the #1 reason businesses lease office equipment.

Here are some others:

  • It is cheaper than buying outright (once tax relief is accounted for)
  • Afford the best quality – no compromises
  • Flexible tenures from 12 – 84 Months
  • VAT is charged on the smaller payments and not the large fee at the start
  • Tax allowable — rentals are an operating expense and so are 100% tax deductible
  • Payments are fixed for the term
  • One rental will include all equipment and ancillary costs i.e. consultancy, installation, training and maintenance
  • Keep your credit lines intact — Leasing does not affect any of your existing credit lines
  • You are free to upgrade, make additions, or settle the finance agreement at any point
  • Flexible options at the end of the Lease – including indefinite ownership

Let’s run through the simple steps one by one

ESTABLISH THE BUSINESS REQUIREMENT

Just like a cash purchase, the lease process begins with a detailed examination of the business need. Usually, this entails contacting your existing technology and equipment supplier or researching the market for a local solutions expert.

AGREE BUDGETS AND PRICING

Once the business need has been determined, explore pricing options with your supplier by requesting a monthly payment option. Your supplier should be able to provide costings quickly and clearly provided they already have a leasing Partner in place.

PROCEED TO CREDIT APPROVAL

With both equipment and pricing confirmed, your lease application will be processed by your supplier. The credit approval process can take as little as 10 minutes, after which your lease documents will be received for signing.

READ AND SIGN THE LEASE AGREEMENT

The lease agreement will be emailed to you for digital signature using a secure and reputable digital document signing platform, such as Adobe Sign. Read over the agreement and sign the sections where prompted.

YOUR EQUIPMENT WILL ARRIVE

The equipment plus associated installations will take place at a date and time as agreed with your supplier. Once the solution has been successfully installed, your application will be progressed for sign off.

THE PAYMENT CYCLE BEGINS

Within 10 workings days of installation, your first payment will be collected via Direct Debit. Further payments will be collected on a monthly basis for the remainder of the term and your supplier will contact you towards the end of the lease to discuss options for returning, upgrading or extending the use of the equipment.

What can be Leased?

Leasing is applicable to a great number of equipment and technology types, including software.

Here’s an example of the things that can be offered via Leasing:

  • Desktop Phones
  • Telephone Systems
  • VOIP licenses
  • Mobile Phones
  • Tablet Computers
  • Servers & Networking
  • Laptops
  • Desktop Computers
  • Copiers & Printers
  • Peripherals (headsets, keyboards etc.)
  • Telecoms & IT Software

Many business customers are delighted to find that professional services can also be included in the Lease. So if your upgrade requires installation, setup, training or maintenance fees, these can be broken down into monthly payments too!

What are the Requirements?

As long as your equipment totals £1,000 (ex VAT) or more then you qualify for the lease option.

Prior to paperwork being sent, we perform a quick credit check on your business to ensure we can secure funding for the amount required.

As will be itemized in our Lender Ts & Cs, your equipment will need to be insured; otherwise, the Lender will add insurance for you. This gives you and the Lender added security in case any of the equipment gets lost, damaged or stolen during the term.

Do not worry though, the equipment is usually already covered in your building and contents insurance, 97% of the time this is the case.

Due to the Consumer Credit Act, it can be easier and quicker to arrange finance if your company is registered as one of the following:

  • Limited Company
  • LLP
  • PLC
  • LEA School
  • Any organisation in the public sector
  • Partnerships of 4 or more partners

Are you a Charity? We can finance the lease through your limited entity if so – check that you have one!

How does Tax Relief Work?

Leasing qualifies as an operating expense to your business and so is 100% tax-deductible.

This means, at the end of each financial year you can deduct Leased expenditure from your tax bill, giving you greater profits!

Example

Company A is looking to purchase new telecoms equipment for its Sales force. The supplier offers them two options, either to buy the equipment outright or to utilise a lease option.

Assumptions:

  • Equipment Price: £7,374
  • Lease Period: 3 Years
  • Frequency: Monthly
  • Company’s Tax Rate: 30%

Cash Purchase

Tax relief is only available on the capital allowances on the equipment.

  • Year 1 – 25% of £7,374 = £1,843 – Less 30% = £553.00
  • Year 2 – 25% of £5,531 = £1,383 – Less 30% = £415.00
  • Year 3 – 25% of £4,148 = £1,037 – Less 30% = £311.00

Total tax relief: £1,279.00

Lease Rental

Tax relief is available on all rentals, in this case at a rate of 30%.

  • Year 1 – 12 rentals of £252.00 – Less 30% = £908.00
  • Year 2 – 12 rentals of £252.00 – Less 30% = £908.00
  • Year 3 – 12 rentals of £252.00 – Less 30% = £908.00

Total tax relief: £2,724.00

By choosing to Lease, Company A would gain over £1,400 more in tax relief when compared with a cash purchase.

How is Tax Relief accounted for?

When a business leases their equipment they are able to gain relief on 100% of the lease rentals against its corporation tax.

This means, for each and every lease payment made the business can claim 20%+ in tax relief against its corporation tax, keeping the cash in the company as opposed to handing it over to the HRMC!

Company A

  • Profit: £100,000
  • Corporation Tax to be paid: 21%
  • Profit after tax: £100,000 – 21% = £79,000
  • Total Tax paid: £21,000

Company B

  • Profit: £100,000
  • Corporation Tax to be paid: 21%
  • Lease Rentals to be paid: £10,000
  • Profit after Lease Rentals: £90,000
  • Total Tax paid: £18,900

Company A pays £21,000 while Company B pays £18,900 in corporation tax.

Get in Touch

We’d be happy to assist with your requirements

T: 01254 271 334
E: sales@unifiedworld.co.uk