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New to equipment leasing? We will try to answer your questions.
Warewashers are Consumer Credit Licensed (Number 608467) by the Office of fair trading and as such are
able to offer advice and Leasing facility to customers who wish to take advantage of this tax efficient way of
obtaining equipment for their business.

Leasing makes good business sense ......

LEASING IS 100% TAX EFFICIENT because all leasing payments are 100% tax allowable.

LEASING IMPROVES CASH FLOW by allowing you to take advantage of the equipment you need without using your capital. No deposit required.

What Are The Benefits Of Leasing?
Leasing Conserves 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 the organisation - such as product development, new staff or new business opportunities.

Leasing Is Tax Efficient.
The main reason that the majority of companies lease rather than purchase equipment is that they use leasing as a method of reducing their tax bills.  This is because 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 a companies 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 business’s.

Ownership at the end of the lease
Lease rental is just that, a rental agreement, Title of the goods remains with the lessor, which means the
equipment does not show on the companies balance sheet, therefore not needing to be depreciated over a
fixed period.
You can take full advantage of all the benefits of leasing but still own the goods at the term end (Tax loop-hole).

Leasing Offers Fixed Payments.
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 Keeps Credit Lines Intact.
Leasing converts a large capital expenditure into small monthly payments.  Hence the company has the
profit-making equipment immediately and keeps their cash reserve available.
Rather than investing the precious cash reserves in depreciating assets, the company can use them to help
increase profits.

Leasing Offers Flexible Payment Profiles
Payments can be made on a Monthly, Quarterly, Bi-Annual or Annual basis.

Leasing Can Provide 100% Financing
In most cases, all of the costs of a solution can be covered in your payments. We will finance equipment and services from a variety of suppliers, thereby simplifying your payments.

The total amount that assets have depreciated by during a reporting period is shown on the cashflow statement,and also makes up part of the expenses shown on the income statement. The amount that assets have depreciated to by the end date is shown on the balance sheet.

If you you would like to discus leasing options further please call our sales number 0844 088 1282 or email
sales@warewashers.co.uk with details of the equipment you are interested in and will will be able to provide a detailed proposal.

Warewashers are Consumer Credit Licensed : 608467