Financial Benefits

• Affordable budgeted payments not affected by changes in interest rates and cannot be withdrawn, unlike a bank loan or overdraft.
• If you buy equipment outright the capital invested becomes tied up in a depreciating asset, whereas leasing allows you to save your resources for new business opportunities, working capital and other investments
• It is tax efficient, particularly if you pay corporation tax.  Leasing payments may be deducted from taxable profits, which reduces the net cost of leasing the equipment
• If an operating lease is chosen it becomes off balance sheet and improves ratios.

Technology Benefits

• With a lease you can specify the manufacturer, model and even the source.  You’re covered by all conventional manufacturers’ warranties and your options allow you to acquire more of the equipment your business needs
• Leasing allows your business to keep up with changes in technology; upgrading and refreshing, adding to or replacing your existing equipment.  This allows you to respond to any market or competitive pressures.
• Disposal problems are taken away (as required by UK Governmental Weee Directive 2006), as this falls to the lessor.  Given how quickly equipment becomes obsolete and in view of reducing hardware prices against depreciation times, purchasing is no longer the best option for acquiring computer equipment.

PRA Can Help Maintain Supplier Relationships

• To capture all future costs we recommend the use of a Project Rental Agreement.  The PRA is designed to streamline all of your costs under one transaction.  The agreement will finance and manage the entire spend of the hardware/software project requirement.
• The agreement consists of two parts. An initial Project Facility, and subsequent Fixed Lease.  When your project is complete, a pre-agreed Fixed Lease finances the equipment over the most appropriate period.
• The PRA has the same attractive rate as the lease facility and also has the advantage that interest is only applied to what is utilised, not the whole of the lease.

Complete Flexibility when using VFS

• We can provide an efficient way to fund fast depreciating, short-life assets, releasing working capital for longer-term projects with higher investment returns.
• Lease repayments are matched to your business needs, avoiding reactive cash flow spikes and under or over supply issues, whilst optimising Return on Investment.
• The lease chosen will be cash flow efficient, with all capital expenditure offset over the term of the agreement.  It is highly tax efficient; with rentals offset 100% against taxable profits over the lease term giving tax allowance acceleration.
• VFS has lenders, subject to suitability, that can provide an immediate facility for your current technology infrastructure, particularly if purchased within the last twelve months.  The assets (which can include hardware, software and services) are acquired by the lessor for the tax written down value (or original cost dependant upon the age of the assets) and are then leased back to you.  This provides positive cash flow and gains the benefits of a lease acquisition vehicle, while the assets remain in place and continue to be used in the normal manner.