The Benefits of Leasing
Here are some key reasons why so many organisations like yours use leasing as an alternative to cash or a bank facility.
- 1. Significant tax benefits – For private organisations payments are fully tax deductable unlike using cash.
- 2. Low, fixed payments allow easy budgeting throughout the term.
- 3. Spread the cost of your purchases in line with the return on the investment.
- 4. Make your capital work for you – Rather than sink valuable cash into depreciating assets, deploy it elsewhere for higher returns.
- 5. Totally flexible, a lease allows you to determine the term, how frequently you pay and can be upgraded or changed throughout.
- 6. Manage obsolescence and refresh assets strategically rather than face unbudgeted large write offs.
- 7. Make investment decisions based upon your needs and not limited by constrained budgets
- 8. Reduce dependency on your primary funder(s) – Your existing credit lines remain unaffected and you will have access to over 30 specialist asset funders
- 9. Spread the cost of the VAT which is paid in instalments rather than as a lump sum up-front (excluding Hire/Lease Purchase agreements)
- 10. Turnkey funding – Build all your costs into the lease to maximise your benefits even further
Leasing Timescales
You can lease assets over a term to suit your needs, subject to the asset in question. For instance technology assets are typically financed over a 3-5 year period. Machinery, for example, could be leased significantly longer period. Alternatively leases could be as short as one year with goods like software licenses, for example. We can advise you as to the most appropriate term for your specific needs.
What We Lease
Leasing IT technology such as computers, tablets, servers and telecoms allows you to improve performance and acquire the latest technology, without tying up capital or existing lines of credit.
If your organisation would like to know more about leasing computers, laptops, servers or any other technology systems, contact one of our specialists today on 0844 412 4575.
Hardware Leasing
You can lease almost any type of hardware equipment, from desktops computers, printers and laptops through to routers, networking infrastructure and installation.
Software Leasing
Software is an integral part of your IT solution – arranging asset finance for software is just as advantageous as leasing computer hardware and other equipment.
When a leasing company finances software, it does not acquire ownership of it as they are technically only buying a licence – in other words, the right to use the software.
Of late, there has been a marked increase in the availability of funds for software-only lease deals and Servers Direct offers some of the best software leasing deals around.
Can I lease equipment from any manufacturer?
Servers Direct is completely independent of any manufacturer so your choice of equipment acquired under a lease agreement is virtually unlimited. We are of course always happy to offer advice about suppliers or manufacturers on request.
The Facts
What size of transaction can be financed?
The minimum lease value is dependent on the goods selected; the order must be worth the company time. Benefits remain consistent regardless of project size.
How are the rentals treated for VAT?
Rentals attract VAT in the normal way. Lease Purchase agreements do not as the VAT is paid in full, upfront.
Will I own the equipment at the end of the term?
A standard Bluestone Leasing rental agreement is totally flexible at the end of the initial term. Like many organisations, if you do not wish to return the goods at that point, you can choose to retain the equipment for as long as you want, or permanently for a one off charge. However, for you to have gained the best tax advantages during the term you will not legally own the asset.
What happens if the goods become obsolete or need to be upgraded?
One of the main reasons for leasing is to match the period of a products productive life. You can, at any point in the rental period, upgrade the equipment and your payments will alter accordingly. The upgrade path is another great benefit of leasing.
What happens if I don't keep up the payments?
Like any agreement, you are agreeing to make the payments as arranged. If you fail to make these payments then steps will be taken to remove the leased goods and enforce the terms of the agreement. A benefit of leasing, unlike most bank facilities, is that there is no link to the broader financial performance of your organisation – As long as the rentals are paid, the facility cannot be withdrawn.
Will signing a lease reduce my ability to gain credit elsewhere?
No, signing a lease through Bluestone Leasing will leave all your present lines of credit in place, if anything it may help you gain more credit in the future.
