The following illustration provides budget
figures to help with your purchasing decision.
Fixed Term Lease
2 Years
3 Years
4 Years
5 Years
No. of Rentals
Monthly Rental
Weekly Equivalent
Leasing v Cash

By paying cash, the amount you can deduct from your
tax bill is limited to capital allowances on the purchase.
Also don’t forget the interest (or other return on capital
employed – “ROCE“) that is lost.

Some other beneifits

Have what you need today with no cash outlay

Independance finance cannot be withdrawn an keeps existing credit lines open

Use bank funding for working capital to maintain a healthy business

Fixed payments for the term means easy budgeting


Pay for the equipment as you gain the benefit – not before


Let the equipment pay for itself with immediate return on investment – you wouldn’t pay your staff 3 years in advance


Have you what you need – not what your budget limits you to

Leasing may overcome budgetary restrictions which prevent capital outlay

Cash Price
Less Tax Relief
Plus lost ROCE
Net cost of paying cash
By leasing you will gat tax relief on every payment
Total rentals
Less tax relief
Net cost of lease option
…and you are improving cashflow, the lifeblood of your business.
Example based on
Highest tax rate of
Capital allowance -Yr 1
ROCE per annum of
36 Months lease

All figures provided are subject to credit approval. E&OE.

All paymants are exclusive of VAT at the current rate and assume payment by direct debit.

The lease illustration assumes the Annual Investment Allowance has been exceeded. Hire purchase may also be available.

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