One of the key drivers behind you and your business’ ability to grow is your access to the best equipment: whether that’s the latest computer technology, software or any other capital machinery. So, being able to get a hold of this quickly, cost-effectively and easily can be a vital factor in your ability to perform. Equipment leasing brings with it a whole range of benefits, from enormous tax breaks for SMEs to boosting cashflow. Leasing equipment could give your SME a competitive advantage, so we take a look at some of the ways those stack up to help give you the edge in a crowded, competitive marketplace:
1. Flexibility
To compete, SMEs have to be fast moving, dynamic and ready to adapt at all times. Leasing gives you a powerful way of dealing with the natural ebb and flow of the business cycle. Cost-effective equipment hire allows you to quickly scale up for rapid growth and expansion, and gives you the choice: do you spread the cost with monthly payments, or pay up front? The decision is in your hands – and that’s a key differentiating factor between you and your competitors in how you manage your business.
2. Tax benefits
It’s a good idea for any business to maximise the efficiency of how they’re taxed. A massive advantage of leasing is that it appears as a ‘rental payment’ in your company accounts, which means it can be offset in its entirety against pre-tax profits – a much more attractive prospect than cash purchases. That ultimately means a boost to your cash-flow, which you can then use to direct towards other, more critical areas of the business.
3. Avoid enormous depreciation costs
Nobody wants to be stuck with old or obsolete equipment: it is often more of a hindrance than a help, limiting your workforce’s ability to get the job done and potentially missing out on new business. Leasing allows you to stay on the cutting edge and leverage the very latest technology while limiting your exposure to potentially skyrocketing depreciation costs. You won’t be stuck with an expensive load of equipment that is suddenly rendered obsolete by the latest innovation. Particularly for an SME, smart asset finance can be the key to surviving and thriving in the modern marketplace.
Leasing equipment could give your SME a competitive advantage – where to find out more
If you need help securing lease financing for your SME, please get in touch with us. We enable companies across the UK to acquire much needed capital equipment through leasing and can offer financing for many different requirements from asset finance to business expansion and invoice financing.
Find out about the different types of finance we can provide on our Alternative Finance page.
