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New to refrigeration equipment leasing? We will try to answer your questions.

Leasing and finance

Leasing makes good business sense

Leasing your refrigeration equipment is 100% tax efficient because all leasing payments are tax allowable. It can improve your cash flow by allowing you to take advantage of the equipment you need without using your capital. No deposit required. Here are some of the benefits:
Conserve cash reserves
Leasing enables you to acquire the solution you need without making a substantial lump sum cash payment. This can then be used to better effect elsewhere in your business, such as product development, new staff or new business opportunities.

The main reason that many companies lease rather than purchase equipment is as a method of reducing their tax bills. Lease rental is 100% tax deductible, meaning that all payments you make for your equipment are written off against your tax bill. For any profit making business, this means a substantial saving in real cost of acquiring equipment by lease rental. This could save you between 20-40% of your lease payments, depending on the rate of tax you pay.
Payments on qualifying leases are written off as direct operating expenses, rather than a debt or outstanding liability, thus reducing short term taxable income.
Any capital allowances are passed on to you, you can offset your rentals against taxable profits and you can also reclaim the VAT on your monthly payments.
This status as a rental as opposed to a liability on your balance sheet is something the banks like to see, which is why an operating lease can be attractive. For this reason, leasing is often referred to as ‘off balance sheet’ financing , a tremendous advantage to both large and small businesses.

Payments are fixed for the term of the lease, protecting you from changing interest rates. Knowing the amount of future payments enables more accurate budgeting and cash flow projections. And because payments are fixed, the true cost of leasing diminishes over time as the value of money depreciates.
Leasing converts a large capital expenditure into small monthly payments. Hence, you get profit-making equipment immediately and keep your cash reserves available. Rather than investing your precious cash reserves in depreciating assets, you can use them to help increase profits.
You can make payments on a monthly or quarterly basis. Leasing can provide 100% financing. In most cases, all the costs of a solution can be covered in your payments.