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DGOS Client Benefits:
We recognise the benefits of leasing can vary depending upon the organisation borrowing the money. However, the fundamental advantages to all organisations remain the same: Improve Cashflow with fixed monthly payments Lease payments are fixed for the period allowing you to budget for one easy monthly or quarterly payment for your total office solution
Preserve borrowing power
Other lines of credit from your bank remain intact for other credit needs. In addition, leasing is far more cost effective than bank borrowing as loan payments do not attract 100% allowances.
Be completely flexible
You can add to your existing lease at any point during the term. You can either extend the term and keep the payments the same, or simply increase the payments and keep the end date the same.
At the end of the lease period you have two choices
A) Continue to rent the installation at small monthly charge.
B) Negotiate 'infinite' use of the installation for a one off lifetime rental.
For tax paying organisations: It can be cheaper than paying cash!
If you pay for the furniture and refurbishment of your building from your cashflow, only a limited percentage is allowable for tax purposes. Because of the 'intangible' elements, the revenue only allows you to claim capital allowances against a proportion of the project.
For an average job, we would expect this to be approximately 65% of the project. However, if you lease the works, the repayments are 100% allowable, unlike other forms of finance such as a bank loan.
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