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Business Finance

Credit crunch - not with Johnson and Reed finance. Independantly funded, this finance offers an excellent an alternative to traditional lenders such as banks. The cost of leasing your building could be less than the cost of paying cash depending on your circumstances. Finance will help free up vital capital in your business.

What is Business Lease Finance?

Often referred to as Lease Purchase or Hire Purchase. This is the standard and very common method of acquiring goods with full title passing to you at the end of the agreement. Straightforward, simple and the asset appears in your balance sheet.

Any VAT is payable up front on the purchase price of the goods. With this arrangement, you claim the writing down allowances and the asset is shown on your balance sheet. The interest element of each payment can be offset against taxable income. Depreciation on the asset is entered into your account and is an overhead of your business.

All figures exclude VAT and are strictly subject to status. Tax relief illustration assumes 21% tax rate and depreciation policy in line with lease term. Tax relief will vary depending on your individual circumstances or may not apply at all if your corporation does not pay tax. E&OE. We recommend that you discuss this with your accountant to make sure that that your business receive maximum benefit from a lease agreement.

Frequently asked questions

What is a lease exactly?

A tax efficient borrowing facility specially designed for businesses acquiring garden buildings. The finance company buy the equipment on behalf of the customer and then lease it back to them over an agreed term.

Why is leasing so tax efficient?

Every lease payment is 100% allowable as a tax-deductible expense, therefore reducing the real cost of your purchase. A cash or loan purchase will only allow a small percentage write off in the first year, reducing each year thereafter.

Is borrowing from a bank cheaper?

Initially payments are probably lower, but over the course of the lease the greater tax savings will mean the lease compares favourably with a bank loan. Depending on your circumstances it may even be cheaper to lease.

If bank finance and leasing finance are similar in cost in the long run, why shouldn't I just go with my bank?

Bank lending is often secured on your personal or business assets, or both. Leasing is unsecured. Also, bank loans and overdrafts can be repayable on demand - check the small print. Providing rental payments are paid on time, our facility is fixed until the term ends.

What is required to qualify for a lease?

A simple application can be done over the telephone. Accounts may be required dependent on the value.

How will leasing benefit my business and me?

Lease finance is a convenient and comprehensive method of fitting out a shop of factory with minimal capital outlay, freeing financial resources for development elsewhere.

Do leasing rates fluctuate like interest rates?

No, Leasing rates are fixed and do not vary with bank interest rate charges, enabling you to accurately plan ahead with cash flows and budgets.

Can I apply for leasing if I am a new business?

Yes, new businesses are considered, additional information may be required.

What is the repayment period?

The repayment period is normally 36 months although 12, 24, 48 and 60 months are available

What happens to the building at the end of the lease term?

Providing the contract has not been broken we can offer uninterrupted possession of the building. Title of goods can be transferred via a third party for a nominal payment agreed in advance.