Leasing Options

We offer a finance leasing option through our partner Chelco to allow your company to spread the cost of you purchase. Leasing offers significant benefits over outright purchases. Since lease payments are 100% allowable against pre–tax profits, the real cost of your lease is dramatically lower than you might think. During the term of the lease, the costs can be offset as a trading expense. Outright purchases, on the other hand ties up valuable capital and so limits your company's ability to grow, whilst in some cases reducing the tax–deductible allowances you receive.

Benefits for leasing

Aids Cashflow

You will be able to use your equipment without the need to outlay a large capital expenditure. This allows them to use the released capital more profitably.

Tax Efficiency

Lease payments are 100% allowable against taxable profits compared to 40% in the first year and 25% in the following years for a cash purchase.

Competitive Rates

Chelco have access to over 20 different sources of funding and as such can offer clearance rates unparalleled in the industry as well as obtaining the best possible rate.

Examples:

Limited Company:
  1. Company ABC Limited wants to buy a product valued at £7,500
  2. The rate they are charged is [example figures only] £36/000 for 36 monthly instalments over 3 years
  3. The monthly rental cost [based on the above figures & time scales] would be: £7,500 x 36(rate) divided by 1000 = £270 per month
  4. The total rental cost would then be: £270 x 36(months) = £9,720 [Real terms – £2,220 interest]
  5. The tax benefits [based on a tax relief of 20%] would be: £9,720 minus 20% = £7,776 (Real terms – £1,944 tax savings)
Sole Trader or Partnership:
  1. Has the same calculation as above until stage (V).
  2. The tax benefits [based on a tax relief of 23%] would be: £9,720 minus 23% = £7,484.40 (Real terms – £2,235.60 tax savings)
  3. The above is purely an illustration for guideline purposes and Chelco cannot be held responsible for the accuracy of any of the figures.
  4. Chelco advise that you contact Toolsonline with any further questions.

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