Finance options for your installed equipment!

November 22, 2016

R.J. Smith Electrical Engineers are now able to offer our customers a lease finance option for new equipment needing installed.  

 

Here are some reasons why leasing is attractive to your business:-

 

  • Keep your valuable working capital protected.

  • Offset 100% of the rentals against your tax liability to maximise tax efficiency.

  • Get your equipment straight away, rather than when budgets allow.

  • A lease option is simple and safe – what with the fixed cost throughout the lease period there will be no changes or unpredictability to watch out for.

  • Your business can stay up-to-date with the latest equipment! Leasing provides you with the option of upgrading the equipment at any stage throughout the agreement by simply restructuring the payment schedule.

  • If you want to take ownership of the equipment at the end of the lease term then for a fee of £75 + vat, you can have ownership of the equipment transferred.

 

 

 

 

 

 

   

500kva Standby Generator installed

 

from only

 

£334 + vat per week

 

 

 

 

 

 

 

 

 

 

1500 kva Substation installed

 

 from only

 

 £592 + vat per week

 

 

 

 

Lease finance example:-

 

Equipment Cost: £70,000 - Lease Period: 3 Years - Frequency: Monthly - Company's Tax Rate: 20%

 

                     Cash Purchase                              versus                                   Lease Rental

     

Year    Capital Allowance                        Tax Relief                     Year    Capital Allowance                   Tax Relief

   1     18% of £70,000 = £12,600 x 20% = £2,520                             1      12 rentals of £2,269 x 20% = £  5,445

   2     18% of £57,400 = £10,332 x 20% = £2,066                             2      12 rentals of £2,269 x 20% = £  5,445

   3     18% of £47,068 = £  8,472 x 20% = £1,694                             3      12 rentals of £2,269 x 20% = £  5,445

Total tax relief:                                 £6,280                    Total tax relief:                            £16,335

 

                                                                 Total cost of lease     £81,698

                                                                 Less tax relief           -£16,335

                                                                 Net cost of finance   £65,363

 

Contact us today for a quote and a lease projection for your equipment needs.

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