Benefits of Leasing
Cheaper than paying cash
If you pay for the furniture and refurbishment of your building from cashflow, only a limited percentage is allowable for tax purposes. Because of the 'intangible' elements, the Revenue only allows your company to claim capital allowances against approximately 65% of the project. However, if you lease the works, the repayments are 100% allowable unlike any other form of finance such as a bank loan. This 100% allowance on payments makes leasing the most tax efficient method of refurbishing a building and can work out cheaper than paying cash.
Overcome Budget Limitations
You can make the most of your budget by spreading the cost over 3 or 5 years and acquire the solution that meets your needs fully, rather than that which the capital budget dictates. You can pay monthly, quarterly or annually to suit.
Ease Cashflow and Include Everything
Lease Payments are fixed for the period allowing one easy monthly or quarterly payment for a total office solution.
Preserve borrowing Power
Many users would rather not tie up crucial credit lines with their bank for this type of project, preferring to leave lines open for future working capital. Using leasing allows you to achieve the project without compromising these lines of credit.
Be Completely Flexible
You can add to your lease at any point during the term by; either extending the term and keeping the payments the same, or simply increasing the payments and keep the end date the same. In addition, the term of the lease can be anything between one and five years, to suit you and the lease on your building.
Payments are fixed for the payment period therefore allowing you to budget effectively.