A large market leading company in the financial services sector was relocating its office to a prestigious London location to accommodate the expansion of its rapidly growing business.
The company is cash rich and had initially intended to fund the entire office move from their cash flow. With a fit-out and furniture quotation in excess of £1.6m, the project for their new workplace environment required a significant up-front capital investment.
We spoke to them early on in their project, and introduced the concept of lease finance to fund what is, after all, a depreciating asset where the rewards are only realised over time.
Firstly, they could re-allocate their budget and invest their cash instead into revenue generating activities elsewhere in the business.
Secondly it allowed them to achieve the project specification of their choice and not make decisions based on limitations of their cash budget. In practical terms this means an enhanced level of customisation and superior final finish specification, for example bespoke flooring, adding unique etched designs on their glass partitions, and commissioning an acoustic ceiling to give the office a contemporary twist.
Plus Finance worked closely with the client and facilitated bespoke stage payments in line with their preferred valuation sign off process.
By selecting a lease facility, our client used their cash for higher returns elsewhere and made long term decisions for their working environment. With significant tax benefits negating much of the cost of leasing, the decision to lease their fitout has been a positive one for their business.
We chose Lease Financing (through Plus Finance) as our funding method for our new office fit out as we knew that we would achieve a higher return on our capital by investing it elsewhere. In this instance we reassigned the budget we had allocated for the fit out to an investment project which is anticipated to yield a substantial higher return than the cost of lease funding.Group Finance Controller, Major Financial Services Group, LondonDownload Case Study