Leasing & Equipment Finance in one spot

More than one way to buy plant and equipment 

• Are you in the market for a motor vehicle or to upgrade your plant and equipment?

• Have you weighed up the advantages and disadvantages of financing the item separate from your other business operations?

• Sometimes paying in cash or utilising your overdraft facility can commit working capital that you may require at a later date. 

• Leasing & Equipment Finance can provide a solution to help your business.  Some of the advantages are:

 
1. You can obtain a fixed rate for the term of the facility.

2. You will ensure the debt will decrease in line with the life of the asset, so you don’t make a “loss” when you want to trade.

3. The item is the sole security for the facility, leaving any equity in property available for other uses.
 
4. You don’t tie up your valuable cash resources for a capital item.

5. You can choose a residual payment on the facility to ensure the instalments suit your cash flow.

6. You could obtain some much needed taxation benefits with the correct structure.


Two of the more common facility types are: chattel mortgage and leasing .
 

Chattel mortgage:

• You purchase and own the item, taking a loan to suit your cash flow requirements.
• You may choose to include a balloon payment at the end of the loan term to lower repayments.
• You would claim the interest portion of the loan and depreciation on the item on your tax return.

 

Lease:

• The financier purchases and owns the item on your behalf.
• You rent the item with a residual amount pay able at the end of the term that matches the expected value of the item.
• You would generally be able to claim the rent pay ments as a deduction on your tax return.

 

For qualified advice, click here Canfinance Leasing Enquiry can recommend the best option to suit your needs.