YOUR QUESTIONS ANSWERED
Q:
Isn't it better to buy outright?
A:
No. there are many reasons why you should protect your cash. For further details see our section entitled Equipment Leasing.
Q:
What happens at the end of the lease?
A:
We will extend the agreement indefinitely on payment of a single further monthly rental. After that you can keep the equipment and will never have to pay any more.
Q:
Isn't leasing just for companies who can't afford the cash?
A:
No. Companies who lease do so because they know that there are better uses for their spare funds.
Q:
Is leasing only relevant for large acquisitions?
A:
No. Transactions of all sizes are completed using lease agreements. You can lease equipment worth as little as £1000.
Q:
Do I have to insure the equipment?
A:
Yes. It is your responsibility to keep the equipment insured for all risks for the term of the agreement.
Q:
What happens if the equipment becomes faulty?
A:
You have the protection of the manufacturers and/or suppliers warranty. Responsibility for repairs out of warranty are yours.
Q:
What about VAT?
A:
Rentals attract VAT. This can be reclaimed if you are VAT registered.
Q:
What can be included in the agreement?
A:
Leasing enables the whole solution to be financed. This can include hardware, software, installation, training and warranties.
Q:
Can the equipment be upgraded?
A:
Yes. The equipment can be upgraded during the course of the agreement. Speak to us for further details.
Q:
Is it possible to settle the agreement early?
A:
Yes. However we always recommend you speak to your accountant to make sure it does not create an adverse tax position.
Q:
Is there a penalty for settling early?
A:
No. If you clear the account before it has run it's full term then there is a reduction in the full amount payable.
