Financing Options
An Alternative Way to Finance Your Refit
It is now common practice to lease a vehicle fleet, IT and plant. The same advantages are also available for office refurbishments and refits, which means:
The expenditure is transferred to ongoing revenue repayments rather than the capital budget, which may make it easier to proceed with the project.
Leasing can be cheaper than using capital or a bank loan, as lease payments are 100% allowable against tax. Capital expenditure is generally only 65% allowable, so leasing can give a saving of up to 10% compared to a bank loan, or 20% against capital expenditure.
Your financial borrowing facilities are preserved for other projects or priorities.
It leaves your capital intact for expenditure in other areas of the business, or for dividend payments.
