In today’s highly competitive world, it’s never been more important to keep your Business one step ahead…
Leasing is the answer !
It means that your business doesn’t have to “make do” with outdated equipment which does no favours for your efficiency, customer service, corporate image or even staff morale. Who doesn’t like a good moan about the failings of equipment making life more difficult ?!
An affordable monthly/quarterly rental (rather than a significant cash outlay) is a small price to pay to maintain pace with latest technology and possibly keep one step ahead of your competitors.
So, why Lease ?
When you need new equipment there are usually 2 options available to acquire it: spend your own cash or borrow someone else’s. If you borrow, then several options are available: take out a loan; arrange an overdraft; or lease it.
It doesn’t make any commercial sense to put your hard-earned cash into purchasing equipment that will ultimately depreciate – and sometimes very quickly !
Your bank may be an option worth considering but loans and overdrafts are invariably secured against company assets or require your personal guarantee. It’s also worth bearing in mind that by seeking to extend your borrowing with your bank might result in a full bank review of your facilities. So, if you have a sensible alternative method of funding your asset purchase other than through your bank, you should use it and leave any bank borrowing in reserve.
Leasing is the answer…
It is a quick and simple method of purchasing the equipment you need while leaving your cash in your bank and your banking lines untouched; ready for those times when unexpected calls are made on your cashflow. Once you’ve spent your cash or used your bank facilities on buying depreciating equipment, you run the risk of a lack of working capital in your business…wishing you had used leasing instead.
What are the benefits…?
The rental payment is fixed throughout the life of the agreement, no matter what happened with bank rates.
Leasing gives you flexibility too. We match the term of your agreement with the life expectancy of your asset but sometimes technology advances so fast that you will want to update the asset sooner. Not a problem…we simply supersede your existing lease with a new one for the updated equipment.
All the rentals payable under a lease agreement are an operating expense to your business and can be fully offset against your tax. Your own accountant will be able to advise you of the full benefit to your business.
No deposit is required so your cash stays in your bank and the rentals commence after delivery/installation of your new equipment.
So, what’s not to like about leasing ?
Call one of our relationship managers’ on 0345 680 1895, when considering your next asset acquisition and take advantage of the many benefits that leasing brings to your business.
MBM Capital are authorised and regulated by the FCA No 787408
