Catertech South West Ltd
Leasing is a contract Between the leasing company and the customer. The leasing company buys and owns the asset, and the customer hirers the asset from the leasing company and pays rentals over a pre-determined period for the use of the asset.

The advantages of utilising the leasing option:

Fixed Inflation Proof Rentals
Fixed rental payments allow you to easily budget for the monthly or quarterly payments helping you to plan your cash flows safe in the knowledge that you will not be surprised by any unexpected further costs. The rentals are also unaffected by fluctuating inflation rates which can mean in times of increased inflation that you will actually be paying less.

Conserved Working Capital
You do not need to use your capital budget to acquire equipment as the rental payments are deducted from the revenue budget as running cost of the business.

Simple Upgrades
As your requirements change or as technology develops you can upgrade their equipment within your lease agreement.

Tax Deductible Rentals
All rentals you will pay on a lease agreement are wholly tax deductible.

Company A
Buys £10,000 of equipment and writes it off over 3 years
• Year 1 – pays tax on 25% of the £10,000
• Year 2 – pays tax on 25% of 75% of the £10,000
• Year 3 – pays tax on 25% of 50% of the £10,000
At the end of the 3 years Company A will have paid £5,531 in tax. 		Company B
Leases £10,000 of equipment over 3 years equating to £1,000 a quarter or £4,000 a year.
• Year 1 - £4,000 is tax deductible
• Year 2 - £4,000 is tax deductible
• Year 3 - £4,000 is tax deductible

At the end of the 3 years Company B will have paid £0 in tax.

Existing Bank Facilities Remain Intact
All existing facilities the customer may have with banks and financial institutions may remain intact if the customer acquires equipment through a rental agreement with a third party finance company.
Immediate Use of the Equipment
Due to the nature of lease agreements rentals are taken from the company’s revenue budget which means that the board does not need to release the funds from the capital budget or wait for the budget to become available.