Financing equipment

We offer two methods of financing IT equipment for your business:

• Outright purchase with Microsoft Financing
• Leasing through Grenke Leasing

Microsoft Financing

You can finance software, services and hardware as long as there is at least one Microsoft component in the contract. Your customers receive rights to use the software as long as needed based on payment terms.

Contract Changes

At any time during the contract, you can add software, hardware or services with supplemental financing available from £1,000. Additional credit approval may be required.

Payment Details

• Interest rates are competitive and determined by the term and size of the contract.
• Payment terms are offered from 24 to 60 months, depending on the program.
• Deposit payments are generally not required.

Microsoft Financing can work with you to structure payments on a case-by-case basis.

What can it be used for ?

Microsoft Financing finances :

• Microsoft software, services (maintenance and upgrades,
• Technical support, training and implementation)
• Hardware and ancillaries
• Installation and implementation services required to get the solution up and running

Subsequent software additions and services satisfying the above criteria may be added to an existing financing agreement - with credit approval.

What next ?
 

Call Jim on 01343 544577 for a quick quote. Most applications can be completed within 24 hrs.

Leasing

Buying new technology can take a huge bite out of your working capital and loans are getting more expensive. Leasing gives you the latest technology at a price you can afford, along with attractive tax benefits.

You can lease almost anything we sell and profit from our flexible, tailored plans on equipment worth from five hundred to hundreds of thousands of pounds.

You can lease an entire system including accessories, software and even support. You can even upgrade your system before the end of your lease.

Leasing gives you the technology you need at an affordable fixed monthly cost. What could be better for your business and your cash flow?
 

The benefits of leasing include:

• Easy to arrange: Call us for an instant quote on 01343 544577
• Simple paperwork: Just one signature required.
• No large upfront costs: Keep your capital working for you.
• Tax benefits: Leasing is 100% off-settable against pre-tax profits.
• Flexible payments: Choose from 1 to 5 year terms.
• New technology: Upgrade whenever you choose.
• Budget Management: Fixed monthly payments for accurate budgeting.
• Credit Lines: Protect your overdraft and optimise your commercial credit.
• Special Rates: Special rates for schools, universities, government departments and hospitals

Lease or buy ?

Whether you are a sole trader, a PLC or a government dept., cash flow is the life blood of business. When it comes to spending large chunks of it on IT equipment, sooner or later the same question will come up; is it better to buy the equipment outright or to lease it. Below we will try to show you that from a cash flow point of view leasing has considerable advantages to your cash flow.

An up and coming sales company has decided that it needs to update it's aging servers. They have decided that the network upgrade will cost a total of £11,750 inc VAT, they have also decided that they expect to expand further within in the next 3 years to ensure that they don't fall behind the technology stakes again, the following two scenarios show the financial benefits of leasing vs buying.

Scenario 1 - Buying outright
Our company buys the new servers for a total of £10,000 + VAT, Immediately they are £11,175 down but as they are VAT registered they can claim the VAT back at the end of the current quarter in 3 months time.

And that's it, your money is tied up in the new equipment, so if you had other plans for the £10k then you're going have to get it from elsewhere. Over the next three years our company can claim back 25% of the balance per year.

Initial Purchase Price £10,000

Year 1
25% of £10,000 = £2500 - Balance = £7,500

Year 2
25% of £7,500 = £1875 - Balance = £5,625

Year 3
25% of £5,625 = £1,406 - Balance = £4,219

So at the end of the servers expected working life our company has been able to claim £5,781 against pre tax profits.

Scenario 2 - Lease Rental
Our company leases the servers over a 3 year period paying 1 initial payment of £343 + VAT, then 35 monthly payments of £343 + VAT. So out of their original £10,000 + VAT budget they still have £9657 to spend on stock which they can sell for a profit, something that could not have been done if they had bought the equipment outright. This really is a case of having your cake and eating it.

But there's more. Not only does our company retain the money to spend on more stock, but the payments they make on the lease are 100% tax allowable against pre-tax profits. As shown below:

Year 1
100% of £4,116 (12 x £343)

Year 2
100% of £4,116 (12 x £343)

Year 3
100% of £4,116 (12 x £343)

Total that can be claimed back against pre tax profits is £12,348.

Even though the lease rental has a higher cost of £2,348 + the £10,000 over the 3 years, the ability to claim all of this back compared to the £5,781 for the outright purchase shows the tax benefits of leasing.

Conclusion
Why 'make do' with equipment that 'won't do'? Our leasing solution can give you the tools you need and not what your bank account dictates to you.

So leave your overdraft intact and take the pressure off. After all, today's cutting edge equipment will be tomorrow's 'old hat'. It's the flexible that prosper, not the companies that hang on to old, outdated equipment. As any financial advisor will tell you, investing large sums in fast depreciating assets is not a wise move.