An excellent way to budget for future expenditure. All rentals are fixed for the duration of the agreement thus allowing you to accurately budget for future expenditure.
Possibility for off balance sheet financing.
Certain agreements offer taxation savings as all rentals may be allowable against corporation tax.
You can preserve your existing lines of credit or cash position for your business working capital requirements.
You can arrange for the regular rentals to be in line with your budgeted expenditure by altering the length of the agreement.
You can pay VAT on each rental as opposed to when you purchase the equipment.The agreement is a medium term facility, which cannot be withdrawn, provided the rentals are made. The uncertainty that may be associated with overdrafts, which are repayable upon demand, is removed.
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