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Why Lease?
| Leasing is probably the most popular method of purchasing new equipment today. |
| The majority of customers purchasing catering equipment will lease. |
| This allows them to have the best equipment without the worry of using cash flow. |
| We lease to PLC Blue chip not Just companies who cannot afford to pay upfront. |
Should I pay cash or lease?
You may be able to afford to buy the equipment outright, but before you make that decision, you must consider the following:
1. Will I need to make other purchasers in the next few years that will need money? If so why spend all your cash flow.
2. Most catering equipment needs replacing every 3-5 years so why keep outlaying money all of the time on assets that devalues itself.
3. Once you have spent the money it has gone. Catering equipment is not like a house or a car. It would be virtually impossible to sell them and generate money of them if ever needed.
4. Leasing enables you to save your cash for other purchases such as new stock, staff training, advertising, new business opportunities and unexpected happenings.
5. By Leasing the equipment, at the end of the term we can come in take the old equipment out and replace it with brand new equipment with you still paying a similar monthly amount.
6. Roll in the warranty and service package for the entire term of the agreement. Have peace of mind that your equipment will be looked after.
7. Do you pay you chef/staff 5 years salary at the start of the contract?? Why do the same for equipment simply pay as you use and earn from it.
Do my payments increase if Inflation or Interest
Rates rise?
No.
Your monthly payment is fixed at the start of the lease and so are unaffected by interest rate rises.
This enables you to budget your cash flow more accurately.
As inflation rises, because your payments are fixed the cost of the equipment reduces in real terms.
Is there a tax benefit associated with leasing?
Yes.
A business wishing to acquire capital equipment has to seek the most tax efficient way when doing this.
All lease payments are treated as an allowable business expense and therefore attract tax relief for the full duration of the lease agreement.
Your accountant will be able to confirm this.
Should I go to my bank?
No.
Using your bank for all your business funding is not a good practise.
If you use all your overdraft facilities you leave yourself in a vulnerable position to react to any unexpected needs of short-term borrowing.
Your bank may change the interest rate mid-way through a loan or reduce your overdraft facilities, which can dramatically affect the cash flow of your business.
Sometimes banks will limit the amount they will lend you without further security such as taking a charge on your home.
It is not financially prudent to have all your eggs in one basket.
Have the best equipment
This enables you to choose the best equipment available with no cash outlay.
This will give you the benefit of better staff working with the best equipment
This enables you to have the best equipment available with the latest technology.
From the off start to enjoy the extra profits this generates before your next lease payment is due.
Change Equipment at the end
Either at the end of the lease you can own the goods for one extra monthly payment or we can come in take the old equipment away and replace with brand new equipment allowing you to have the best and latest equipment.
We have been dealing with Mr Whiteware Ltd in Catering Equipment for over 20 years.
We don’t want your cash
We want to save you money and get your custom today.
To secure it for the future.
Kennet Equipment Leasing Ltd
Kennet House
Temple Court
Temple Way
Birmingham
B46 1HH
Co Reg 02569928
Contact Carlos Rodriguez
Tel: 01675 469218
Fax: 07006 000251
Mob: 07595 694395
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