Leasing can often be the most cost effective way of acquiring your B.E.S Security equipment.
What is leasing?
“Leasing is a contractual agreement where a leasing company (lessor) makes an asset it owns available for use by another party (a lessee), for a certain period of time and in exchange for payment.”
The Use of Leasing Amongst European SME’s Executive Summary, Oxford Economics
Leasing is a form of finance used throughout the world by governments, businesses and people, to finance a wide variety of different activities. Leasing can help pay for equipment (see below), vehicles, property, and more.
What is equipment leasing?
Equipment leasing is a vital tool for all businesses looking to grow and finance equipment, especially when the current UK recovery is so fragile. It allows you to agree a fixed term contract with which you can lease brand new equipment without a big outlay in Capital Expenditure (CAPEX), instead paying for your equipment with tax-deductible Operational Expenditure (OPEX).
Equipment leasing contracts are typically marked by a securing of the agreement against the equipment alone, and with regular fixed-amount payments which do not affect other credit lines or banking relationships. Repayments are designed to be taken over the useful life of the equipment.
Leasing is ideal for equipment which primarily increases revenue or reduces costs, meaning an immediate return on investment (ROI).
Why should I choose equipment leasing?
There are a number of reasons why equipment leasing is a much better alternative than paying cash for new equipment.
Here are the main reasons why:
- Rather than using your hard-earned and precious cash, pay for your equipment over the term of its useful life. This makes repayments much easier to budget.
- Leasing agreements often have minimal or no deposits.
- Start using your new equipment immediately, rather than when you can afford to buy it.
- By using Operational Expenditure (OPEX) you can write off the total amount of your leasing agreement against corporation tax.
Academy Leasing provides you with a number of extra benefits that you may not receive with other leasing companies, including:
- Agreements are very simple to arrange, and you often get an answer within 24 hours.
- Choose the terms of repayments to suit your own business.
- Clarity regarding end of lease from the start. Choose between flexible options at the end of the contract, upgrade, keep using the equipment or simply return it.
- Academy Leasing currently operate with a 90% acceptance rate.
- New start businesses given real consideration.
- Over 30 year’s industry experience.
What kind of equipment can I lease?
Whether you are looking to finance a single item of equipment or an entire refit of your premises, we promise to react quickly to get you an answer as soon as possible.
It doesn’t matter to us whether you are an established business or a brand new one, we will do our very best to provide you the same great level of service.
10 benefits of leasing
Leasing provides a great number of benefits. Here are just 10 main benefits:
1. Tomorrows technology, today
Customers can take the advantage of the latest range of equipment and spread payments over a 2 to 5 year term.
2. Conserves working capital
Capital can be put to work for other more profitable purposes.
3. Payment reflects usage
Pay for the equipment as it is used and spread the cost through its working life i.e. 2 to 5 years.
4. Tax allowable
Depending on the type of lease, tax relief can be allowable on some of the monthly rental costs and all the VAT can be reclaimed by VAT registered businesses.
5. Upgrade facility
Take advantage of new equipment and ranges by simply upgrading or extending current usage.
6. Plan budgets
With rental payments, you know when and how much you have to pay. This is a FIXED TERM and FIXED RATE facility.
7. Acquire what is needed
You can acquire the equipment you need now, not just what you can afford.
8. Simple direct debit
One rental can include all equipment and ancillary cost i.e. installation, training, and maintenance costs.
9. Leasing does not affect existing credit lines
This has no impact on your existing bank facilities.
10. Flexible end of lease options
Terminate repayments and obtain title OR upgrade to new equipment.
What is the process of acquiring leasing?
With Academy, the process is very straight-forward. Typically leasing agreements run like this:
Step 1 – B.E.S finalises the order specification with its client. B.E.S introduces the client to Academy as its preferred source of leasing.
Step 2 – Academy provide an immediate reply to the client with what, if any information is needed to secure your credit.
Step 3 – Academy performs credit searches.
Step 4 – The client is provided with leasing proposals from Academy and can review these, and thereafter select and sign the lease arrangement paperwork.
Step 5 – Academy co-ordinates with B.E.S to arrange delivery and installation of the equipment (if selected).
Step 6 – The contract then begins between Academy and the client. Payment of the first invoice is made upon authorisation of B.E.S satisfactory delivery of the equipment.
How much can I borrow?
Whether you’re replacing single items of equipment or have large set-up costs for a new start venture, we can help you get finance.
We typically deal with companies looking for finance anywhere between £1,000 to £250,000, however we can just as easily help you find £500,000 or more.
Try our Online Lease Calculator.
How do I apply for finance?
It’s really easy, simply contact John Dean at B.E.S Security or Kevin Edwards at Academy Leasing.