As inflation continues to grow businesses still need to ensure that all lines of communication remain open and as more businesses recognise that our 'Hybrid' way of working is going to continue. As more people look to save money where they can on fuel and food then businesses will also need to look towards ways of saving or spreading the costs of capital expenditure.
The need to invest in equipment and systems that help them become more efficient and more eco-conscious is important if we are to manage or businesses through this crisis.
One way for businesses to do this is to finance capital expenditure over a longer period 1 or more years that way they can spread the impact of that cost and manage it sensibly as opposed to having to find a lump sum for an essential element that will help furnish growth.
Fortunately at Walcom Integration we have a solution and by being able to offer a Lease Purchase option we can help you spread the costs for an upgrade to your current system or a whole new solution, much of which will be Tax allowable.
As an example for medium sized Meeting Room with a cost of *£6922 (excluding VAT) financed over a 1- or 2-years period
1 year *£640.35 per month
NET Cost after Tax Relief: £6224.20
Tax Saving: £1460.00
Monthly Rental after Relief: £518.68
(In addition would be a one off payment of £150 for the Documentation and then at the end £150 for the Title Transfer so that the equipment is then yours to keep).
2 years *£327.20 per month
NET Cost after Tax Relief: £6360.77
Tax Saving: £1492.03
Monthly Rental after Relief: £265.03
(In addition would be a one off payment of £150 for the Documentation and then at the end £150 for the Title Transfer so that the equipment is then yours to keep).
These Lease Purchase Options have a number of Benefits as follows:
- PROTECT YOUR CASH-FLOW - Have the equipment you need now without affecting your companies cash reserves
- INCREASE YOUR PROFITABILITY - You can conserve your working capital and put it to use in other more profitable ways
- PAY AS YOU USE - You can pay for the equipment as it’s used and spread the cost through its working life, i.e. 1 to 5 years
- TAX ALLOWABLE - Leasing qualifies as an operating expense to your business, meaning each is payment is 100% tax deductible
- AFFORD THE BEST QUALITY - With a manageable monthly repayment, you can afford the latest technology available. There’s no need to cut corners on your upgrade!
- SIMPLE DIRECT DEBIT - One rental can include all equipment and ancillary costs i.e. consultancy, installation, training and delivery
- PAYMENTS ARE FIXED FOR THE TERM - Lease repayments are fixed for the duration of your lease, they do not fluctuate – making budgeting easy
- FLEXIBLE END OF TERM - At the end of the lease contract you are free to keep, upgrade or return the equipment as you please
Lease Purchase options are available from a minimum of £1000 (ex VAT)
Please always seek advice of a professional prior to committing to this option.
Please note that all equipment associated with this will need to be covered by your business insurance.
*Prices correct at date of posting 23 August 2022