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Businesses are faced with three choices when buying IT equipment. Do they pay using their own cash, with a loan or should they lease?
By paying cash upfront, an either/or choice for essential IT equipment is created. What else could the cash be used for? Loans are hard to get - they require meetings with the bank, are usually for large expenditures and the administration can be complex. Leasing benefits you by giving you the products and equipment you need at an affordable fixed monthly cost allowing your business to quickly obtain equipment you need with minimum administration and/or impact on cash budgets.
An Overview
What is leasing?
Leasing is a financial contract between your company and a leasing company. You will be committed to repay a given number of fixed payments for the term of the contract, (for example 36 monthly payments of £50+vat). We supply the goods to you and we are paid by the leasing company i.e. you are effectively renting the goods from the leasing company for the duration of the lease. The goods are owned by the leasing company at all times. Because you are renting and not buying the goods you can claim 100% tax allowance on the payment
Who can apply?
Lease finance is available to all companies within the European Union, which includes sole traders, partnerships, limited companies, PLC's, national, and local government departments, schools, universities, hospitals & charities. The minimum price that would qualify for a lease is in the region of £500 + VAT and there is virtually no upper limit. Due to the tax laws that apply to leasing, we unable to offer this service to customers in Isle of Man, Republic of Ireland or the Channel Isles.
PLEASE NOTE: Small Businesses that have been trading for less than 18 months may have problems obtaining a lease due to their lack of trading and credit history available to the leasing company to make an application decision.
Easy to arrange
It is very easy to arrange a lease - just call us with your requirements to get an instant quotation on your equipment you need. Please note that the figures quoted may change depending upon the credit rating and status of the applicant.We handle all the paperwork and all you have to do is sign the appropriate forms which are sent to you.
Benefits
No Large Upfront Costs - Most businesses earn revenue over time, but having to pay for equipment up-front, in one go, can tie up one of your most valuable resources; instead keep your money working for you and spread the cost of your IT equipment over its useful working life.
Budget Management
Leasing ensures a fixed manageable monthly payment, irrespective of interest rate rises or other external factors. The low monthly cost of the lease is fixed, enabling accurate budgeting and removing any guesswork from your financial forecasting.
Preserving Credit Lines
We offer leasing from £500 upwards. You can preserve your existing bank lines and optimise your use of commercial credit sources. No additional security required, leasing is entirely separate from any bank lending or other credit arrangements you may have. By leasing equipment, your overdraft or bank loans are free for use in running your business.
Tax benefits
100% allowable against pre-tax profits - Leasing is fully allowable against tax. All payments are 100% tax efficient. Traditional Hire Purchase is not as tax efficient and therefore may cost more in the long run even if it initially looks cheaper.
Technology Upgrades
Leasing allows you to take advantage of technology advances at a time of your choosing and at a reasonable cost. By contrast, a business that owns IT equipment can only upgrade by reinvesting and disposing of the existing asset.
Flexible Payment Levels
You choose the payment level. Options range from 1 to 5 years. You select the right option so you have the technology you need at a price you are comfortable with.
FAQs
Please Note: In this guide we use the term "equipment" to denote the assets being financed which may include hardware, software and any ancillary products.
Part 1 - About the agreement
Q: What exactly is a Grenke Leasing Lease?
A: It is a contract between you and Grenke for the hire of equipment that you have chosen through ’Reseller Name’. ’Reseller Name’ provides you with the equipment, Grenke pay the invoice and you pay them regular rental payment
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