Assets Finance and Leasing
Michaels Commercial are happy to help arrange for you a competitive quote to lease any IT hardware or
software, cars (individual or fleet), HGV's and Plant and most other assets your business may need.
Leasing is a tax and cash efficient way of financing equipment and vehicles for your business, it keeps the asset 'off balance sheet' and can be arranged on almost anything, from equipment valued at a few thousand pounds to several millions.
There are many benefits of leasing an asset rather than purchasing it outright which can be summarized below:
Better Cash Flow
Leasing gives you access to the asset with minimal up-front payments and spread the cost over time. You to pay for the asset with the income it generates while minimizing the outlay from your working capital.
Your lease can often finance everything related to the purchase and installation of the asset and may free up cash flow to pay for items such as training.
An operating lease preserves your credit options and does not influence your credit limit as it is generally not classified as debt but as expense (note that this advantage does not apply to finance leases!).
Simplified cash flow
Lease payments are usually flat, making cash management more predictable and stable whilst also protecting you from rate rises.
Flexible time frames
Leasing contracts can be structured to fit your individual business requirements allowing you to use an asset for as long as you need it without owning it for longer than needed.
Operating lease payments are generally tax deductible just like depreciation charges but, crucially, they are made with pre-tax money versus a cash purchase which is made with money which has already been taxed.
Hedge against obsolescence
Depending on your end-of-lease option, just return the asset to the lessor, leaving you with none of the hassle of having to dispose of the asset at that time or incurring loss via depreciation.
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