Benefits of leasing
Here are the key reasons why
most organisations use leasing to fund assets
![](https://agron-led.com/wp-content/uploads/2020/07/graph1.png)
Significant tax benefits
Rentals are 100% allowable against Corporation Tax.
![](https://agron-led.com/wp-content/uploads/2020/07/graph2.png)
Totally flexible
You decide the rental term, payment frequency and deposit. You can even settle early or upgrade before the end of the agreement.
![](https://agron-led.com/wp-content/uploads/2020/07/graph3.png)
Pay while you use it
Pay for the equipment as you use it, as opposed to all upfront.
![](https://agron-led.com/wp-content/uploads/2020/07/graph4.png)
Preserve cash flow
Keep your cash in the business to spend on items with higher returns.
![](https://agron-led.com/wp-content/uploads/2020/07/graph5.png)
Makes budgeting easier
Fixed repayments over the rental period makes budgeting and planning easier.
![](https://agron-led.com/wp-content/uploads/2020/07/graph6.png)
Preserve existing lines of credit
Your existing credit lines remain unaffected.
Choosing the right lease agreement
Lease Rental
(Finance Lease)
£1,000 - £10M+
- Term: Typically 1-5 years. Longer term assets (e.g. plant and machinery) often longer
- Repayment frequency: Annually, Quarterly or Monthly
- Rates: Fixed
- VAT: On each payment
- Tax: Fully deductible
- Ownership: Finance company throughout
- End of the agreement: Equipment can be returned to Agron-LED or retained for a fee, known as an infinite rental
Lease Purchase
(Hire Purchase)
£1,000 - £10M+
- Term: Typically 1-5 years. Longer term assets (e.g. plant and machinery) often longer
- Repayment frequency: Annually, Quarterly or Monthly
- Rates: Fixed
- VAT: In full with first payment
- Tax: Partially deductible (equivalent to using cash)
- Ownership: Client (subject to full payment)
- End of the agreement: Equipment ownership automatically passes with the final payment for a nominal fee