Lease Rental vs Lease Purchase

On Lease purchase agreements all the V.A.T. will be due for payment on the first monthly payment.

• Lease purchase is regarded as a business loan and not tax deductable,
• Lease rental is a business expense and therefore tax deductable.

Benefits of a Lease

Leasing is faster & easier than a traditional financing methods.

• Instantly generates working capital
• Reduces the amount of taxes paid
• Off balance sheet financing
• Fixed regular payments
• Does not affect the lines of bank credit
• Purchase at the end of the agreement possibility

FAQs - Buying On Lease With Collingham Catering Services Ltd

1. What are the financial benefits of buying on lease?

When you choose to buy catering equipment using a lease scheme, the payments made are treated as an "operating cost" so they are "tax deductable". These payments therefore reduce the taxable profit of your business by 100% of the charges.

2. Who am I actually dealing with and who is providing the finance?

Our finance schemes are operated by some of the UK's leading independent "business to business" finance houses. They are professional and reputable as well as being regulated by the FSA. We have selected them for the levels of service they provide and the lengths they go to on behalf of our customers.

3. Does buying on lease mean I have to wait longer?

No. Quite the opposite. Removing up-front costs by buying on lease means you can obtain the equipment you need, with minimum outlay, on day one. And, the credit checks that need to be made are done speedily, either by phone or online, and an acceptance decision can take as little as a couple of hours!

4. Couldn’t I just go to my bank for the money?

Yes, possibly, but using leasing to acquire your new equipment, means you protect your other lines of credit, such as loans or overdraft facilities, whilst conserving available capital.

5. What do I need to provide in order to be accepted?

Acceptance decisions are made based on a number of criteria, such as, type of business, how long you’ve been trading, credit history and the funds required.

6. Why else should I choose to buy on lease?

In some cases, the cheapest equipment may not necessarily be the best option for your business. Buying on lease means that you can acquire the equipment that’s exactly right for you, without being constrained by the capital you have available at this moment in time. So, instead of waiting, using leasing ensures you get the best option now and enables you to pay for it out of future savings or revenues