Leasing

Lease Rental vs. Lease Purchase
On lease purchase agreements all the V.A.T. with be due for payment on the firstmonthly payment.

Lease purchase is regarded as a business loan and not tax deductable
Lease rental is a business expense and therefore tax deductable

Benefits of a Lease
Leasing is faster & easier than traditional financing methods.

Instantly generates working capital
Reduces the amount of taxes paid
Off balance sheet financing
Fixed regular payments
Does not affect the lines of bank credit
Purchase at the end of the agreement possibility

FAQs - Buying On Lease With Olive Branch Catering Equipment Ltd

1. What are the financial benefits of buying on lease?
When you choose to buy catering equipment using a lease scheme, the payments made are treated as an "operating cost" and so are "tax deductible". These payments therefore reduce the taxable profit of your business by 100% of the charges.
2. What about if the interest rate changes?
Olive Branch's lease plans work on a fixed interest basis; therefore interest rate changes don't impact on the payments you make. They remain constant throughout the period of the lease, allowing you to budget accurately for the outlay.
3. Who am I actually dealing with and who is providing the finance?
Our finance schemes are operated by some of the UK's leading independent "business to business" finance houses. They are professional and reputable as well as being regulated by the FSA.
4. Does buying on lease mean I have to wait longer?
No. Quite the opposite. Removing up-front costs by buying on lease means you can obtain the equipment you need, with minimum outlay, on day one. And, the credit checks that need to be made are done speedily, either by phone or online, and an acceptance decision can take as little as a couple of hours!
5. Couldn't I just go to my bank for the money?
Yes, possibly, but using leasing to acquire your new equipment, means you protect your other lines of credit, such as loans or overdraft facilities, whilst conserving available capital.
6. What do I need to provide in order to be accepted?
Acceptance decisions are made based on a number of criteria, such as, type of business, how long you've been trading, credit history and the funds required.
7. Why else should I choose to buy on lease?
In some cases, the cheapest equipment may not necessarily be the best option for your business. Buying on lease means that you can acquire the equipment that's exactly right for you, without being constrained by the capital you have available at this moment in time. So, instead of waiting, using leasing ensures you get the best option now and enables you to pay for it out of future savings or revenues.