| a) |
100%
Tax Allowances - All leasing payments are 100%
tax deductible and are a legitimate and allowable business
expense. So....on the proviso your company is actually
making a profit(!), the leasing payments will reduce that
profit, and of course, your eventual tax liability. However,
if you decide to pay cash (we also take cheques!) the only
allowance you will be entitled to is "depreciation" of
the Air Conditioning System generally over a period of
seven years.
|
| b) |
Budget
more effectively - By spreading the cost over
3, or 5 years clients can budget for one easy fixed cost
for the period, which can include the intangible elements
such as partitioning, carpets tiles and and design costs.
|
| c) |
Be
totally flexible - Payments can match the cash
flow of the business - Payments can be made monthly, quarterly
or annually to suit the customer's cash flow. One of the
most common reasons quoted for companies failing, is bad
management of cash flow. Leasing helps clients to manage
their cash flow more effectively.
|
| d) |
Preserve
borrowing power and invest funds elsewhere - Other
lines of credit from the bank or other finance houses remain
intact for other credit needs. In addition, leasing can
ease the strain on working capital and provide finance
with no deposit therefore leaving you with more reserves
to invest in in profit making activities.
|
| e) |
Allocation
payments from a revenue budget as to a capital budget -
In large organisations there are two budgets, a capital
budget for purchasing assets and a revenue budget for the
running costs of the business. Leasing comes from a revenue
budget and thus can overcome capital budget restrictions.
|
| f) |
Overcome
budget limitations - Customers can make the most
of their budgets by spreading the cost over 3 or 5 years
and acquire the system that meets their needs fully,rather
than which their budget dictates.
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