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FAQs - Central Asset Finance | Equipment Finance Lease | Equipment Leasing UK

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FAQs

 

What is leasing?


Leasing is a well established, tax efficient method of financing a wide variety of capital equipment.

 

Who leases?


Practically every sector of the British economy takes advantage of leasing. Organisations which lease can be found throughout industry and commerce, in business large and small. For example, a recent survey shows that around 8 out of 10 accountancy firms use leasing and 85% of the Times Top 100 UK companies lease equipment.

 

Why not buy the equipment outright?


The benefits of leasing provide a strong case against a cash purchase. If you buy the equipment outright the money is effectively tied up in an asset that will lose value over time. Leasing, on the other hand, allows you greater flexibility to invest your capital in other business needs, as well as having the required equipment. Moreover, the net cost of leasing the equipment maybe less than you think due to the tax relief on rentals.

 

What about borrowing the money instead?


Using an existing credit line will prevent you from being able to use it in the future for unexpected needs or short term funds. Indeed, the business which borrows to finance equipment is still vulnerable to changes in interest rates. Leasing, however, is not affected by fluctuations in interest rates and allows you to plan your budget accordingly. Financing equipment through a loan is unlikely to offer the same flexibility to change equipment by upgrading or adding other items.

 

Will the rental amount change during the lease?


Your rental payments are agreed at the outset of the arrangement. Your payments will not change unless the Government chooses to increase the rate of corporation tax or makes amendments to VAT.

 

Are payments affected by inflation?


Payments made throughout the life of the leasing arrangement are not affected by inflation. The real cost of leasing will reduce over time as the value of money depreciates.

FAQs - Central Asset Finance | Equipment Finance Lease | Equipment Leasing UK

WHAT IS LEASING?

 

Leasing is a well established, tax efficient method of financing a wide variety of capital equipment.

 

Find out more

WHO LEASES?

 

Practically every sector of the British economy takes advantage of leasing. Organisations which lease can be found throughout industry and commerce, in business large and small.