CUSTOMER BENEFITS

Professions - lawyers, architects.

By far the largest proportion of clients who take up leasing in the office furniture and interiors market is by the professional firms, in particular lawyers and barristers.

Because the partners in these firms pay tax at 40%, leasing offers significant savings over paying cash or using a bank loan facility. Plus Finance has arranged leasing for a number of projects, including the two shown in the case studies section of this website.

On an average fit out project, we estimate this saving can be up to 18% of the project cost compared with paying cash. This is because lease rentals are fully allowable against taxable profits and do not have to be capitalised in the same way as a cash purchase or loan agreement.

A principle benefit of leasing is the fact the cost is spread over a period of time. This means the current partners are not paying up front for capital expenditure which future partners coming into the firm will benefit from. If leasing the office fit out is included as a revenue item in the firm's overheads, the new partners will pay towards this out of their general contribution.