Buy or lease: which one is right for your business?

Lift installation can help a business save money in the long run, but can be costly initially. Now there are a variety of financial options available when it comes to choosing a lift:

LEASING

Rather than buying a lift outright, there are a number of leasing options available, so you can benefit from minimal upfront costs in order to save valuable capital. This money can be easily reinvested into other areas of your business to allow for faster expansion and growth.

For a small business, having capital tied up in depreciating assets is something to avoid. Installing a lift may be able to increase a business’ productivity, but if the company is unable to afford such a cost in the early years of a business’ infancy, then leasing may be the more preferred option.

BUYING

Generally, small businesses will struggle to pay for a lift system to be installed outright. Buying is mainly for larger companies who have been operating for a much longer period of time, and have a much larger profit margin.

These larger companies have much larger budgets available for purchasing expensive systems in one go, as not all their capital is wound up in other things.

TAX DEDUCTABLE

There are added benefits for companies who qualify for or pay corporation tax. Leasing payments can be deducted from their taxable profits, decreasing the overall net cost of the lifts systems.

Payment plans for leasing lifts are not affected by variable interest rates, a common deterrent for a lot of companies. This makes planning and budgeting for leasing payments easier than ever before.

Lease repayments are usually spread out over a 5 – 10-year period. Having a clear and structured payment plan offers better financial stability and instils more confidence in any business deciding to lease a lift.

Once a payment plan is in place; whether buying or leasing, lift installers can soon get to work installing your new state of the art lift system. Pretty soon you will be seeing the benefits to time management and productivity within your business that lifts can bring.

 

 



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