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The benefits of lease hiring for your company:
The benefits of lease hire as opposed to out-right purchase revolve, primarily, around cash flow and tax efficiency.
Cash Flow
If cash flow is tight, lease hire enables you to have the correct equipment now, without having to make significant capital outlay.
If your company is cash rich, lease hire preserves existing credit lines and leaves capital free to be invested for growth. It is a myth that large and/or cash rich companies do not lease hire!
Tax Efficiency
Lease rentals are 100% allowable against pre-tax profits!!
In contrast, a cash purchase will allow tax relief ONLY on the capital allowances on the equipment. Currently, this is 40% o the purchase price for Year 1 and 25% on the reducing balance for all subsequent years.
