We have tried to compile the most frequent and relevant leasing FAQ’s that you ask about leasing on an everyday basis.
I am starting a new business, can I arrange leasing for the equipment needed?
Yes. We can lease whatever equipment you require for a start up business.
Can I include installation and software costs in my lease?
The answer is nice and simple, Yes.
Do I need a large down payment?
Typically a large deposit is not necessary. You can start your lease with normally either one or three months rentals in advance.
My credit isn’t perfect, will I be able to have a lease?
Past credit issues do not necessarily disqualify you from obtaining a lease. The underwriters will consider how long you have been in business and what equipment you are buying; as well as your current situation.
What are the tax benefits?
Leasing is wholly allowable against taxable profits. It is estimated that over 90% of the Times Top 100 companies use leasing services as the best way to acquire equipment.
How much can I have on a lease?
You can have any amount that you can safely afford
I need to raise some money, can I finance equipment I already own?
Yes, this is known as sale and leaseback. Under certain circumstances. As a rule they have to be durable assets, for example CNC lathes, but really anything with a proven resale value which can be uniquely identified with a serial number or other form of identification. Valuations could well be required.
I am a new start, who information do you need?
The key point is to remember that the underwriters will see hundreds of lease proposals for new starts every month, and they do not know you from Adam.
When looking for new start equipment finance, it is best to present all of the information that they will be looking for in a straight forward package, it simply makes their life easier, and so quicker and more beneficial for yourself
So, ask yourself, what are the things that underwriters will require from me?
Quite simple really, you need to paint a picture for them that will give them confidence in your new business.
Do not apply for more than you can comfortably afford, remember you can always add additional equipment months later if required.
It is far easier to add equipment later as you grow, than have something taken away.
Be prepared to show them your last 3 months bank statements, they can show how creditworthy you really are. With the evidence of savings, and other start-up funds, that demonstrates that you are aware of what is required to think like someone who knows how to run a business. It will give the underwriters that crucial word in you, confidence.
Get your business premises sorted out before you apply, then you can say how long the lease is on your premises, it helps the underwriters understand where you are heading in the medium term.
How has Covid affected equipment leasing ?
Covid has changed whole areas for underwriters across Europe. Certain sectors of business are now looked at harder than the were pre Covid. To help, we have an additional Covid form for UK customers.
