Leasing is a fast-growing finance option in the UK, following on from the USA where it is already utilised by over 80% of companies. In the UK the main benefits are:

No Capital Outlay

Leasing removes the need to tie-up cash resources in a rapidly depreciating asset - freeing up capital that is likely to be better invested elsewhere in your business.

Maximum Tax Allowances

Under a leasing agreement the total amount of all rentals payable can be fully offset against your Corporation Tax liability in each financial year, allowing you to write-off the full costs of acquiring new equipment over its expected working life (perhaps only 3 years for high tech equipment).

Compare this to making an outright purchase - which only permits Writing Down Allowances on a Reducing Balance Basis - and it will take 7 years to write off 90% of the same acquisition costs even if you qualify for a 40% First Year Allowance under the Government’s current SME Scheme.

It may be for this single reason alone that over 30% of all capital equipment purchased in the UK is now leased.

Increased Profitability

Each and every asset acquired for your business demands a pay-back. By deferring the acquisition costs, leasing new equipment is an ideal way to accelerate the return on your investment.

Ease of Budgeting

Unlike some 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.

Additional Line of Credit

At Systems Finance leasing facilities are dedicated to the equipment concerned and no other form of security is normally required. These facilities are likely to be outside your existing borrowing capabilities and therefore represent a very useful additional source of finance.

Easy to Upgrade

The valuable working life of many 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 anticipate the need to provide you with replacement or additional equipment and will gladly quote the rental for a new agreement, which will automatically extinguish the liabilities under the existing arrangement.