UK Catering Forum

We are looking at getting new equipment and are not sure if we should stump up the money in full or to get finance /easing of some sort?

Leasing is a very cost effective way of purchasing equipment.

It allows you to budget your expenditure, preserves other credit facilities and allows you to buy the equipment you need today.
Leasing is also 100% allowable against taxable profits.

If you would like any further information please feel free to call me.
The Capital Group
Tel: 0845 4567 707

Tracy

Hi Melvin, did you sort out some finance for your equipment or are you still looking?

Sorry for the delay in replying to your post Cookboy, but yes I did get it sorted thanks.

Regards

Equipment leasing is the right move. Do not tie up your working capital in equipment.

You never know what tomorrow might bring and it's better to have plenty of cash in reserve.

Other benefits of leasing catering equipment include:

Payments can be offset against your tax bill
Keep bank funding lines clear
Low deposit

if you want more information, the Internet is a great source.

Alex Read
www.portmanassetfinance.co.uk

We do a few sales through leasing company's now and then, One thing i will say is that like anything there are advantages and disadvantages to it.

For instance, obviously you will pay a lot more for the equipment in the long run if you lease it but on the positive side you don't have to take the financial hit all in one go, meaning you can effectively make the equipment earn itself. One thing you should be aware of is what terms you are getting and what happens to the title of the equipment at the end of the lease. Not all agreements are the same.

One thing i have found is a lot of our customers usually find that a bank loan is on much better terms then a leasing agreement.

One thing you may find is that a supplier will jump at the chance to make a sale through a leasing company as it's a grantee (as much as anything is these days) that they will receive full payment immediately. Sometimes you can squeeze out an extra percent or two discount.

If you do decide to go down a leasing route let me know and i'll give you the names of the leasing company's we use, having had a few experiences with them i can vouch for them being reputable. Also make sure the company you buy form has a consumer credit license as without it the sale is a little ore complicated.