Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: Steven Butler on March 03, 2017, 07:39:51 pm
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Has anyone leased a machine? Thinking of doing it not only to spread the cost but for tax reasons.
Which company would or have you used for leasing?
Roughly how much would a 3k purchase cost?
What's the criteria?
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Why not just buy one .
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How helpful Glynn......
Oxford funding are decent on lease stuff, As are ing leasing.....
Cheers
Jen
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Leasing can be a great idea. It has many advantages . We sell many machines through the leasing route but, take advice first to make sure it is advantageous for you. Leasing isn't always the best solution a lot depends on the business financials, VAT Registration etc etc. Get the leasing details and repayments then get a quote for a loan over the same period and show your accountant.
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Oxford funding...£115 A MONTH!!!!
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Hi Tim,
Do you reckon that's good?, on a 3 or 4 year deal was it?, and what was the value of the package at Rrp price?
Cheers
Jen
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3 year, dont even notice it going out my account...........
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You need to look at leasing from the business financial position not the price or the repayment costs.
e.g.
If your business would benefit from a bigger better machine and in turn that machine will earn you enough income to cover the monthly payments. Then it is a win win situation the purchase of the machine not only covers the monthly payments, it brings an increase to your income overall and ultimately leave you with a bigger net profit than what you earn now. Now you to need to ask yourself, can I afford to not own the machine. This of course is assuming that, at the moment you can't afford to buy the machine outright then ii is definitely time to look at leasing, personal loan or HP Plan and not worry about capital cost and repayments.
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Whereas Kev is bang on..I used to be a door to door money lender in an early job. All people want to know is how much a month and how much can I have. The rest goes out of the window!!!
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Ive just leased an Airflex pro 600 psi with a magma inline heater through Oxford funding £110 per mth 36 mths Totally happy with the agreement tax efficient and keeps the capital in the bank.
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I have leased a couple of things in the past. Leasing is usually easier than getting a loan depending on circumstances.
There are a couple of things though that you have to be aware of if something happens like, lack of business, sickness, injury etc. where your income may be badly reduced.
1. With a loan to purchase equipment, you would go into arrears with payments, but the equipment is not tied to the loan.
2. With Hire Purchase, the equipment could be repossessed,.
3. With a lease, the equipment could be repossessed, plus you will still be liable for the remainder of monthly payments as per the contract.
What I would say, is if you can get a loan to purchase equipment, do so and only enter into a lease agreement if you can afford the monthly payments working or not.
Dave.