Leasing is a financial contract between you (the customer) and a leasing company. Like finance, you make monthly payments to the leasing company for new computer equipment.
The advantages of leasing
- Upgrade option. During your lease, your machinery can be changed or modified at any time without penalty. After eighteen months you will receive an option to upgrade.
- Immediate use of the equipment without paying the full purchase price to assist your cash flow.
- Fixed Costs for the duration of the agreement, you can include each year’s rentals in your annual budget and remove any “contingency” budget.
- Tax efficient. You can offset all the lease rentals in any tax year against your taxable profits. Therefore, you get full tax relief on any leased equipment. This is unlike an outright purchase or HP type agreement where only writing down allowances are applicable.
- Own the equipment for a nominal figure, at the end of the lease term.
- Upgrade available after 18 months.