Starting up a new business in catering or simply need to expand you current business and upgrade equipment? Leasing Coffee Machines could be the way forward for you.
Many people when running a business have problems with cash flow, especially in the start up period or if they are situated in a seasonal holiday town and this can cause serious consequences if the need to upgrade or purchase new equipment arises.
Leasing Coffee Machines may be the answer as it eliminates cash flow problems and helps with tax reduction.
For example if a Coffee Machines cash price is £3798.00, by paying cash the amount of tax reduction is limited the capital allowances on your purchase. Please also remember the interest (or other return on capital employed (ROCE) that will be lost.
Cash cost 3798.00
Less Tax Relief 741.37
Plus lost ROCE 1257.14
Nett cost of Cash Buy £4313.77
Leasing gives you tax relief on every payment
Total Rentals 4845.60
Less Tax Relief 1938.24
Nett cost of lease option £2907.36
Improving cash flow and therefore the health of your business.
Many of our customers opt for the Leasing Coffee Machines option realising the benefits it can bring including
Having what you need today with no cash outlay.
Keeps existing credit lines open and independent finance cannot be withdrawn.
Ease of Budget control
Lets the equipment pay for itself and gives an immediate return on the investment.
It frees you from being limited by your budget.
These benefits alongside the cash benefit can make a huge difference when starting out and maybe even prevent failure. To be able to eliminate cash flow difficulties in the first two years of trading has to be one of the biggest bonuses any business could wish for.
Leasing Coffee Machines can be for a period that suits you, it might be over 1 year or five years or something in between. Not everyone needs a longer term of lease as they have been lucky enough to either have a substantial sum in reserved for back up or their business might be such that it will build very quickly to show healthy profits in a short space of time. Lease purchase is a much better option than rental as the machine is yours at the end of the period. Rental is never ending.
It has to be remembered that when Leasing Coffee Machines or any other equipment you are effectively borrowing money and therefore certain rules apply. Most Leasing companies do require an applicant to have some collateral to guarantee the purchase, such as being a home owner or having an established business for some time. It may be that you do not have this collateral but may have someone who has, that is able to act as guarantor for you. Some leasing companies will accept that option.
It is true to say that the majority of Cool Beans Coffee customers when looking for new machinery whether it is a new venture or replacing and upgrading equipment that is past its best, opt for the Leasing Coffee Machines method of payment. If this is something you wish to discuss or explore we can help you get the best finance rates available and improve your business without laying out much needed cash.