You’ve decided that you need to acquire new equipment for your business. This could be down to a number of reasons – you might be looking to adapt your business following the period of lockdown and tap into new areas, or maybe your current equipment has become outdated or unreliable, proving a hindrance on your operations.
Whatever your motive, the most important decision is this: do you lease the equipment, or purchase it outright?
There are numerous benefits to leasing equipment for your business. Let’s take a look at some of the main ones:
Keep your cash flow in check
Managing cash flow is especially important for smaller businesses that have limited reserves. You might not even have the capital available to purchase the standard of equipment you need to meet your business objectives.
Leasing requires no major upfront cost and means you can benefit from new equipment while keeping money in the bank – money you might use to invest in other areas of your business. At the same time, you won’t need to worry that your purchases will send you into your overdraft and neither will you need to rely on loans or other credit lines.
If you’re one of the many businesses that have been impacted by the coronavirus pandemic, then it will be more important than ever to protect the cash you have. It might be that you were forced to cease trading during the lockdown, or cut back your operations significantly. Leasing helps you to protect cash so you can use it to cover operational costs while your business picks back up again post-lockdown.
Take advantage of the best equipment
A smaller business is unlikely to be able to invest in market-leading products, given their price tag. But you can if you lease your equipment; it means you can take advantage of equipment that may have otherwise been unobtainable or unaffordable, then potentially upgrade to new equipment when the agreement ends so you can continue benefiting from quality assets.
All this allows you to gain an affordable, competitive edge while some of your competitors may still be on the back foot following the pandemic.
No risk of obsolescence
Say you decide to purchase equipment outright. Technology advances at such a rate these days that in a few years’ time, that equipment will be outdated and not sufficient for your requirements. In other words, it becomes a depreciating asset. Equipment leasing, on the other hand, removes the risk of obsolescence – you can simply hand it back at the end of the agreement if it no longer meets your needs.
Reduce your tax bills
Finance lease rental payments are tax deductible against your profits, meaning that they attract tax relief for the duration of your lease agreement. Your business’ accountant will be able to advise you on how this can reduce your tax bill.
Lease your equipment with Shire Leasing
At Shire Leasing we have helped businesses across a wide range of industries benefit from cutting-edge equipment acquired through leasing. We have profound knowledge of the sectors we serve –from gyms to restaurants, farms and much more – and the unique challenges they face.
What’s more, we aim to be as flexible as possible with our payment options, which can prove invaluable in times such as these. We understand that your cash flow needs protecting through these uncertain times, which is why we offer tailored finance solutions to suit your business’ unique requirements, such as our new Low-start Lease.