Please see link below where you can find an interactive leasing calculator
https://www.kennet-leasing.co.uk/finance-calculator-acgc/
Important: Please remember that value of equipement you are applying for exclude VAT during enquiry. Prices of our devices available online include the VAT. To find the price without VAT please devide the price showing in your order by 1,20.
For example:
Price of device including VAT: £5000
£5000/1,2 = £4166,66
Value of the device you applying for leasing is:
£4166,66
What is Finance Lease?
Finance Lease is a credit agreement most usually chosen by business customers including limited companies, partnerships, and sole traders
Essentially, Finance leasing enables the business to acquire the assets needed to maintain a business, without needing to buy the asset outright.
The main reason that the majority of companies lease rather than purchase equipment is that they use leasing as a method of reducing their tax bills. This is because lease rental is 100% tax deductible, and all payments made for the equipment are written off against the company’s tax bill. For any profit-making business, this means a substantial saving in the real cost of acquiring equipment by lease rental. This could mean a saving of between 20-40% of the lease payments, depending on the rate of tax you pay*.
Payments on qualifying leases are written off as direct operating expenses, rather than a debt or outstanding liability, thus reducing short term taxable income.
Any capital allowances are passed on to you, and lease payments can be offset against taxable profits. VAT can also be reclaimed on monthly payments. This status as a “lease” as opposed to a “liability” on a company’s balance sheet is something the banks like to see, which is why an operating lease can be attractive. For this reason, leasing is often referred to as ‘off balance sheet’ financing – a tremendous advantage to both large and small businesses.
How leasing works in numbers
You lease a machine that costs £5,000.00 + vat over a 5 year term.
Payment would be £112.52 + vat per month, which is a weekly equivalent of £25.97 + vat over 60 months.
Total paid over the term of the lease £6,751.20 + vat.
19% tax can be reclaimed on the total lease payments over the 5 years, so a total of £1,282.73.
Therefore the net cost of the lease is: £6,751.20 + vat – £1,282.73 = £5,468.47 + vat.
Benefits of Leasing:
1. Finance Leases offer flexibility in terms of length of agreement, rental repayment profile and end of lease options.
2. Unlike making an outright purchase, you will retain cash within your business.
3. Effective financial planning. The lease repayment profile gives you confidence in being able to budget for the lifetime of the asset.
4. Tax advantages
5. Using the latest assets will ensure you remain competitive by keeping your costs low.
6. Fast turnaround times
7. Potential to carry on using the asset at the end of the lease period for a nominal payment, or you can look to upgrade the equipment with another lease.
Ownership at the end of the lease
Lease rental is just that, a rental or hire agreement. Title of the goods remains with the Lessor (either Kennet or assigned to one of our panel of lenders) which means the equipment does not show on the company’s balance sheet, therefore not needing to be depreciated over a fixed period.
If Kennet broker the funding, they are the “third party” involved within the lease agreements. In effect, Kennet buys the equipment and will relinquish title for one further monthly payment, we will then have no further financial interest in the equipment. This means that the customer can take full advantage of all the benefits of leasing.
Things to be mindful of:
1. The agreement is secured against the asset.
2. Non payment could negatively affect the credit rating of the business and the guarantor.
If you are interested in leasing option for your business equipement please contact our leasing expert who will be more than happy to assist you.
Adrian Chelsom
Account Manager
mob: 01675 469 207
email: Adrian.Chelsom@kennet-leasing.co.uk
SensualSpa Beauty Trainings LTD is not authorised and regulated by the Financial Conduct Authority. SensualSpa Beauty Trainings LTD can only facilitate un-regulated finance. Un-regulated finance is finance entered into with a limited company, a partnership of 4 or more partners or the value of the finance being over £25,000.
All finance products are subject to status and affordability checks. Terms and conditions apply. Figures provided are for illustrative purposes only and are subject to change. Rates based on a business trading over 3 years. We do not give regulatory or accounting advice. Please see your accountant for information. These finance products are for business purposes only. Kennet Equipment Leasing Limited is authorised and regulated by the Financial Conduct Authority, FRN:676024, for Credit Broking and Lending. We work with a panel of lenders.
Leasing Explained A4 flyer Kennet 2023