Soft Assets Finance

Our funding panel cover just about any soft asset that a client could be purchasing from you.

Our specialist team is dedicated to this market place. Vendors can:

  • Overcome cost objections
  • Get paid fully upon installation
  • Increase your sales
  • Increase your profits
  • Protect your margin
  • Remove the need to discount
  • Offer the best equipment for the job
  • Save time chasing money and customers
  • Reduce the company debtor list

Benefits of Leasing

  • Significant tax benefits – For private organisations payments are fully tax deductible
  • Low, fixed payments allow easy budgeting throughout the term
  • Spread the cost of your purchases in line with the return on the investment
  • Make your capital work for you – Rather than sink valuable cash into depreciating assets, deploy it elsewhere for higher returns
  • Very flexible – a lease allows you to determine the term, how frequently you pay, and can be upgraded or changed throughout
  • Manage obsolescence and refresh assets strategically rather than face unbudgeted large write offs
  • Make investment decisions based upon your needs and not limited by constrained budgets
  • Reduce dependency on your primary funder(s) – Your existing credit lines remain unaffected
  • Spread the cost of the VAT which is paid in instalments rather than as a lump sum up-front (excluding Hire/Lease Purchase agreements)
  • Turnkey funding – Build all your costs into the lease to maximize your benefits even further

Cash vs. Lease Comparison

There are greater tax advantages to a company when purchasing with a leasing option rather than purchasing outright. Please see the example below:

Assumptions

Equipment Price Lease Period Term Company Tax Rate
£8,000 3 Year Quarterly 21%

Cash Purchase

Year Capital Allowance Tax Relief
1 18% of £8,000 = £1,440 Less 21% = £302.40
2 18% of £6,560 = £1,180 Less 21% = £247.80
3 18% of £5,380 = £968.40 Less 21% = £203.36

Lease Rental

Year Capital Allowance Tax Relief
1 4 rentals of £872.24 Less 21% = £732.68
2 4 rentals of £872.24 Less 21% = £732.68
3 4 rentals of £872.24 Less 21% = £732.68