Leasing
UK Cabling are constantly adapting to our customers needs. In line with this, the UK Cabling Rental Option has been introduced. This ensures our solutions provide your company with demonstrable increases in productivity and service without the usually high initial investment.
Our Rental Option incorporates an upgrade path which enables you to add further hardware, software & services during the term of the agreement without necessarily increasing the monthly repayments. This is achieved by simply extending the term of the agreement at the time when the new equipment is acquired, to take account of the increased lifespan of the enhanced system.
In addition, as our documentation is designed to enable your rentals to be classed as a revenue expense (subject to auditor approval), this provides significant tax benefits. These benefits, when taken in conjunction with the additional revenue you could generate by maintaining the capital in your business, present a major saving.
Why Customers Use the UK Cabling Rental Option
Avoid Obsolescence By using our rental facility, you will have an option included in your agreement to add, replace or upgrade your equipment with potentially no increase in the rental cost. This provides significantly more options as your organisation grows or technology changes. Reduced Impact on Cash By financing equipment via the rental option, the cost of the equipment is spread over several years removing the need to make a large capital outlay as soon as the equipment is installed. This enables the solution to pay for itself, and gives you the option to choose a more suitable, higher cost solution with less impact on your cash flow. In addition, unlike most other forms of payment, rental facilities attract VAT with each repayment as opposed to requiring the VAT to be paid in one lump sum, immediately. This further reduces the initial impact on your cash flow. Rental repayments are classed as a Revenue Expense Our rental agreements are worded so that the repayments can be classed as a Revenue Expense (subject to auditor approval). This not only provides a potential acceleration of tax relief, but also removes the need to capitalise the item, and borrowing, on the balance sheet. Fixed Repayments Unlike a normal bank facility, the repayments stated on a rental agreement are fixed for the duration of the agreement. This enables a company to precisely calculate its future budgeted costs. Additional Credit Facility The rental agreement falls outside the customers existing lines of credit, leaving these available for other uses. Finance the whole solution We can include all intangible elements of a solution in the rental agreement, such as software, training and installation. In addition, we can arrange software only finance. No additional security required The equipment is the only security needed for a rental agreement. Your collateral remains untouched which means you can use your collateral against future expansion or challenges facing your company. Simple documentation The rental agreements we provide are simple and easy to understand. A standard agreement is just a single page, and can be e-mailed to you to avoid any unnecessary delays. |