Cash is your most valuable asset, so why tie it up in large capital purchases such as air conditioning equipment (and installation) when a lease finance arrangement can enable you to put it to far better use. Leasing finance is now well established as a very tax efficient method of acquiring a whole range of capital equipment.
Air conditioning equipment is a recognised requirement when it comes to ensuring staff comfort and productivity. But despite the need for these systems, purchasing outright, along with fitting, maintaining and updating can drain a companies resources. Leasing allows your business to stay ahead of technological developments, without impacting cash flow. Equipment may be upgraded or added to during the lease agreement without the worry of extra outlay.
Leasing not only gives you immediate access to the major equipment and installations you require – it fixes your monthly payments throughout the term. This means that you know what your precise monthly outlay will be – irrespective of movements in interest rates or inflation. Overdraft facilities and high street bank loans can fluctuate, but you can budget for lease finance payments for the duration of the contract. A bank loan often also requires a deposit or will impose a fixed or floating charge, maybe limiting funding. You may not receive the flexibility to change or upgrade your equipment either.
From the viewpoint of the financial manager, leasing financing air conditioning installations has several attractions:-
Finance lease rentals are 100% allowable against pre-tax profits, and a minimum of 25% tax relief is available This means that the total cost of your purchase – both capital and interest – can be offset against tax during the lease period, with the leasing payments deducted as a trading expense.
A variety of equipment items for business can be leased such as air conditioning systems, vending machines, photocopiers, franking machines, refrigeration and vehicles. With air conditioning, the end client will own the equipment at the end of the lease finance agreement. At this point we will transfer ownership of the equipment to the end client for a token sum.
Recent projects completed for which the air conditioning was purchased on lease finance include :-
If you would like to enquire about the benefits of leasing the air conditioning for your next project, please call Mitch Swirles on 0191 438 7410.