Our lease purchase finance option is becoming increasingly popular with clients, especially those looking to protect their capital expenditure budget during economically uncertain times. It enables you to secure new temperature control equipment but without the hefty up-front investment that comes with outright purchase. With a lease agreement you pay a fixed monthly cost over an agreed time-period, after which you then own the equipment.
Lease purchase agreements can be an option regardless of the size of your project. It might be that you are looking to purchase a single piece of equipment or a complete cooling system. It is also possible to include additional services such as engineering costs and maintenance plans, as part of the agreement. Our finance solutions are available over a range of time frames, depending on the needs of your business, with the most popular being 3 or 5-year terms.
Savings You Can Achieve
We have had great success with lease purchase when working with clients on energy efficient upgrades. Often the savings that energy efficiency equipment and system design achieve far outweigh the monthly finance payments, so the new equipment effectively pays for itself! This is particularly relevant with free cooling systems.
The table below illustrates such an example. With this scenario, the free cooler itself cost £10,000. The energy savings achieved, based on running at 10˚C, not only cover the monthly finance payment but save an additional £482 per month (or £978 if running at the higher 15˚C figure). So, from day one, not only is the equipment paying for itself, but the client is benefitting from additional savings.
After 3 years the client gains 100% of the running cost saving as the finance payments have been paid in full and they own the equipment.
Peace Of Mind
For many customers, lease purchase also gives peace of mind. The fixed monthly payments help with budgeting and protecting cash flow and other lines of credit within the business such as corporate overdraft is available to be directed elsewhere. Initial outlay is minimal, in most circumstances you only need the first month’s payment to be up and running.
You can also benefit from tax advantages as the monthly lease payment is classed as a business expense. This in turn lowers the taxable income of a business.
Accounting for the full payment of the leased equipment is also easier as the financial statements can be found on the general ledger.
Interested? To find out how lease purchase could help your business call us today. Our Sales Engineers will work with you every step of the way, from initial product specification and selection to completing the necessary paperwork, making the process as seamless as possible.