CASH ?...      LOAN ?...      LEASE ?...    - Questions and Answers...

Check the table below, and see how lease is the sensible option...

CUSTOMER BENEFITS OF LEASING  

Accelerate the Return on Investment
Each and every asset acquired for your business demands a pay-back. Deferring the acquisition costs by leasing new equipment, can provide you with an immediate return on that investment.

Preserve Working Capital – Think Revenue
Maintaining liquidity (i.e. available cash), is critical to the health of a business and is fully supported by the practise of leasing, which removes the need to tie up valuable cash resources in a rapidly depreciating asset; freeing up capital that may certainly be better invested, elsewhere in your business. Leasing allows you to treat the acquisition of new equipment as a revenue, rather than a capital expense.

Leasing is Highly Tax Efficient
Under a leasing agreement the total amount of all rentals payable in each Tax year, can be fully off-set against Corporation Tax, over the life of the agreement. Only leasing enables you to write-off the full purchase price, against Tax, linked to the expected useful working life of the equipment - which may be as short as three years, for high tech products.

If you compare this for tax purposes, to outright purchase (which provides only 25% Writing Down Allowances each year, on a Reducing Balance basis) it takes seven years to write off 90% of the full purchase price, against Tax! (This is true, even if your business qualifies for a 40% First Year Allowance under the Government’s current S.M.E. Scheme).

It is perhaps not surprising then, that over 30% of all capital equipment purchased in the UK, is now leased.

Easy to Upgrade
The valuable working life of many business assets can be hard to predict. Given the pace of technological advancements, any finance arrangement must be flexible enough to accommodate these developments. Our leasing companies therefore expect and anticipate the need to provide you with replacement or additional equipment and we will gladly quote the rental for a new Agreement, which will automatically extinguish the liabilities under your existing arrangement.

Fixed Costs
Unlike many other forms of finance, where interest rates fluctuate, leasing rentals are fixed for the duration of the agreement. This allows you to budget in complete confidence that costs will not escalate.

Another Line of Credit
Leasing facilities are dedicated to the equipment concerned and no other form of security is normally required. Our leasing facilities will not affect current borrowing capabilities, leaving your existing sources of finance, conveniently undisturbed.

VALUE

“It’s unwise to pay too much, but it is unwise to pay too little.

When you pay too much you lose a little money, that is all.

When you pay too little, you sometimes lose everything, because the

thing you bought was incapable of doing the thing you bought it to do.

The common law of business balance prohibits paying a little and getting a lot.

It can’t be done.

If you deal with the lowest bidder, it’s well to add something for the risk you run.

And if you do that, you will have enough to pay for something better.”

John Ruskin 1819 - 1900

Why Leasing?

Leasing companies are responsible for the purchase of several billion pounds worth of manufacturer and dealer sold equipment each year.

By reading the information below you will quickly realise that leasing is the best option for you...

Benefits of Leasing to YOU and Your Salon...

One of the primary reasons for a customer to lease equipment as opposed to outright purchase, are the tax breaks. All lease payments made are fully tax deductible, as opposed to bank or other funding where only the interest element of the transaction would be allowable each year

Conclusion ?
Leasing is definately the smart way to go, not only will it save you money in the long run, it will boost your cash flow short term, and allow you to budget with confidence...

Call Salon Simplicity NOW on 0845 838 6869...