If you’re running a business, doubtless you’ll have a watchful eye on the budget and a firm grasp on the purse strings. One way to keep on top of your outgoings and make sure business runs smoothly is to lease whatever you need, rather than paying for everything outright.
Here’s six reasons why leasing is better than owning…
1. You don’t need a big upfront budget
The most prohibitive thing about owning is that it requires a very large budget or a big pot of savings. Therefore, the benefit of leasing is that you’ll be able to get whatever you need (whether it’s equipment, office space or a vehicle) immediately, rather than having to wait for money to become available. Ultimately, it means you can look after that all-important cash flow and get on with business.
2. You’ll have manageable, predictable payments
If you bought a fleet of vans outright, you’d have to swallow 100% of the cost immediately, as well as paying for insurance, servicing, road tax and maintenance. On the other hand, opting for an arrangement with Lease Van means you could pay for essential vehicles on a month by month basis, spreading risks and debts across months or even years: an attractive option for new businesses or those that are concerned about intimidating commitments.
3. You’re able to get the newest and most sophisticated technology
You’re able to get your hands on top of the range equipment and sophisticated technology with a simple tweak to your contract. For example, if you’re leasing office computers, you can easily upgrade to faster, better computers as soon as new models are released, and even get access to a higher standard of equipment than you could afford if you had to pay for it outright.
4. It’s often tax deductible
Although it’s possible to put your owned business supplies through your tax returns and deduct a percentage from the total, you might actually be better off doing the same with leased items. Leased items are often more tax efficient, allowing you put forward a higher amount of tax relief as shown by Tower Leasing.
5. It’s flexible
The best thing about leasing is that it allows you to be flexible when it comes to making decisions for your business. For example, if you’re not sure what your business will be doing in a couple of years from now, or how much profit you’ll have to play with, leasing must-have necessities for your business means you can budget realistically and adapt as necessary.
6. You may not need to pay maintenance costs
Finally, leasing equipment such as vans, pick up trucks, tools, laptops or office space means that you aren’t going to be responsible for the maintenance and repair if any of it breaks down or becomes unusable. Usually, the leasing company carries the risk and cost associated with repair, maintenance and replacement, which means you can sleep easy knowing you won’t be hit with any unexpected bills.