When an existing client asked us about leasing IT equipment for their head office in the US, we were only too happy to help.
Our client is a major player in the editorial publishing market. As part of their global expansion plan, their US office was planning an extensive upgrade of their IT systems and servers in order to better support and grow the company’s publications.
We have been working in partnership with this client since they leased a major UK office fitout in 2013, and subsequently have arranged finance for several of their other IT projects.
In line with an increasing shift towards alternative finance, and thanks to the benefits they have previously enjoyed from using this form of finance, our client again opted to lease their latest IT project. Leasing avoids the large up-front payment so cash is retained in the business; protecting cash flow in this way means it can be used in revenue generating operations rather than for an IT upgrade which after all is a depreciating asset.
In addition, lease payments are fixed for the duration of the lease period making the budgeting process simpler, more accurate and eliminating unexpected variations such as increases in interest rate. Another substantial benefit is that the lease rental payments are 100% allowable against taxable profit, so it’s a very cost effective and tax efficient way to fund an IT project.
If you’d like to find out how leasing can help your business, or if you are interested in offering this finance option to your customers, please call Plus Finance on 01494 783773 or drop us an email at [email protected].