Leasing Boilers
Lease rentals are considered as an operating cost, which means that it is often possible to deduct them from taxable profits (as a trading expense).
Leasing rather than owning equipment allows companies to produce a better operating performance. Companies who own have to scratch around to find the cash to pay off debts or to invest, but companies who rent benefit from the better financial flexibility offered by the cash released from not owning there equipment such as Boilers. There is slower growth for companies that own their equipment. The research also reveals that the leasing is positively related to a company's growth.
To be able to operate successfully, your business will need to acquire assets or capital equipment, such as plant or machinery. These assets may include office furniture, Boilers, computer equipment, company vehicles, engineering machines or service equipment. You could buy all of this equipment outright, or you might decide to rent or lease it instead. There are advantages and disadvantages in both options.
The disadvantages of buying outright include :−
- you have to pay the full cost of the Boilers up front out of cash which can affect your cashflow
- if you use an overdraft or loan to fund the purchase it will add to the cost − overdrafts can be withdrawn at short notice and in some cases early repayment of loans can be demanded
- a small company is unlikely to get the same deals on price as a large company and may not have the same product knowledge and experience − and so could make an unwise choice
- you may end up buying Boilers that you will not need in the future
- you can't easily spread the cost to coincide with money coming into the business
- you are entirely responsible for the maintenance of the Boilers
- you won't be able to take advantage of the tax benefits of deducting the cost of rental from your taxable income
- the value of the asset may depreciate over time and be worth less than you paid for it
- you take on all the risk if the Boilers breaks down or needs replacing.
With ever increasing demands for jobs to be completed in shorter times, the need for control and efficiency is of high importance. To have the right Boilers to finish the job 'in house' is almost a necessity. We have taken this on board and now offer leasing on the complete range of both new and used Boilers.