Leasing Options
Use the calculator below to estimate your weekly or monthly payments and get a lease quote for your building.
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What is Finance Lease?
Finance Lease is a credit agreement most usually chosen by business customers including limited companies, partnerships, and sole traders.
Essentially, Finance leasing enables the business to acquire the assets needed to maintain a business, without needing to buy the asset outright.
Benefits of Leasing:
- Finance Leases offer flexibility in terms of length of agreement, rental repayment profile and end of lease options.
- Unlike making an outright purchase, you will retain cash within your business.
- Effective financial planning. The lease repayment profile gives you confidence in being able to budget for the lifetime of the asset.
- Tax advantages
- Using the latest assets will ensure you remain competitive by keeping your costs low.
- Fast turnaround times
- Potential to carry on using the asset at the end of the lease period for a nominal payment, or you can look to upgrade the equipment with another lease.
Things to be mindful of:
- The agreement is secured against the asset.
- Non payment could negatively affect the credit rating of the business and the guarantor.
The website MUST carry the following:
Company Name are not authorised and regulated by the Financial Conduct Authority. Company name can only facilitate un-regulated finance. Un-regulated finance is finance entered into with a limited company, or a partnership of 4 or more partners.
Benefits of Leasing
Unlock the Potential Benefits
EQUIPMENT LEASING FOR UK BUSINESSES: A STRATEGIC FINANCIAL SOLUTION
Leasing rentals, or equipment leasing, empower UK businesses by offering access to vital equipment without substantial upfront costs.
Ready to elevate your business?
Reach out to Kennet and embark on a journey to success through strategic equipment leasing!
DEMYSTIFYING EQUIPMENT LEASING
| Example | Details |
|---|---|
| Equipment Cost: | £5,000 |
| Years Trading: | 3 years plus |
| Lease Term: | 5 years |
| Monthly Payment: | £115 |
| Total Payments: | £6,900 |
| Tax Benefit: | (Reclaim 19% of payments over 5 years) £1,311 |
| Net Cost: | (Deduct the tax relief from payments) £5,589 |
Considerations: Non-payment of any lease agreement could negatively affect the credit rating of both the business and any Guarantor and could result in the equipment being re-possessed.
TAX
Accessible to All:
Whether a sole trader, partnership, or limited company, equipment leasing benefits all business types.
Cash Flow Freedom:
Preserve capital and boost financial stability. Acquire essential equipment without depleting resources.
Tax Advantages:
Lease rental payments could be 100% Tax Deductible!
In most cases, the cost of leasing is deductible as a business expense, reducing your overall tax bill.
This could mean a saving of 19% – 25% of the lease payments depending on your profit band and rate of tax applicable to your business.
Adapt to Fluctuations:
For businesses with seasonal or cyclical cycles, leasing allows payment adjustments according to cash flow.
Efficient Approvals:
Kennet’s swift approval process minimises delays, providing you with the required equipment promptly.
Strategic Partnership:
Partner with Kennet for seamless equipment leasing, sparing your business from the financial burden of upfront purchases.
Cutting-Edge Equipment:
Stay ahead in your industry with access to the latest technology. Leasing keeps you competitive.
Flexible Terms:
Tailor leases to your business’s needs, spanning 2 to 5 years.
How Does Leasing Work?
Through a finance lease arrangement, we acquire the equipment of your choice and subsequently lease it to you for an agreed duration.
You select the asset from your preferred supplier, and we procure it, allowing you to utilise it as if it were your own, while making agreed-upon monthly or quarterly payments.
We maintain ownership of the equipment during this period.
What Happens at the End of a Lease?
At the end of the term of the agreement, we can relinquish our financial interest in the equipment for one further monthly payment.*
Kennet Equipment Leasing Limited
Kennet House, Temple Court, Temple Way, Coleshill, Birmingham B46 1HH
T: 01675 469200
Kennet Equipment Leasing Limited is authorised and regulated by the Financial Conduct Authority, FRN: 676024, as an authorised Credit Broker and Lender. Kennet work with a panel of lenders.
All finance is subject to status and affordability checks. Terms and Conditions apply. Documentation fees do apply. All payments shown are excluding VAT.
*Other options are available at the end of your lease and are dependent on the type of equipment funded, age and value. Talk to us for more details.
**Consult your accountant or tax advisor for tax-specific guidance
Leasing Benefits Supplier & Lessee
Supplier Benefits
Sell more equipment by leading with leasing – it can be perceived as more affordable.
Maintain your margin.
Achieve larger sales for relatively small weekly increases.
Fast application turnaround.
Supplier BACS payments sent within 48–72 hours of delivery.
Let us do the work – we handle the finance process for you.
Potential for repeat business when the lease expires.
Customer Benefits
Minimal cash outlay.
Overcome budgetary limitations.
Avoid obsolescence – always have access to up-to-date equipment.
Flexible payment terms and equipment options.
Conserve working capital for other business needs.
Preserve existing funding lines.
Tax benefits: each lease payment (including large deposits) can be offset fully against pre-tax profit.
Fast application turnaround.
100% financing available.
leasing fact sheet
WHY LEASE?
Leasing is probably the most popular method of financing new equipment today.
Virtually any item of equipment can be leased — from £250 to £1 Million.
SHOULD I PAY CASH OR LEASE?
You may be able to afford to buy the equipment outright, but before making this decision, consider the following:
Tax Efficiency:
All leasing payments are rental payments and are therefore an allowable business expense.
If your business is making profits, you can reduce your taxable profit by the amount of the rentals paid each year — which in turn reduces your tax bill.Fixed Payments:
Lease payments remain the same throughout the contract.
This means increases in interest rates do not affect you, enabling you to budget your cash flow more effectively.Preserve Cash:
Leasing allows you to save your cash for other important business needs — such as new stock, staff training, advertising, new business opportunities, or unexpected expenses.
DO MY PAYMENTS INCREASE IF INFLATION OR INTEREST RATES RISE?
No.
Your monthly payment is fixed at the start of the lease and remains unaffected by interest rate rises.
This enables you to budget your cash flow accurately.
As inflation rises, the real cost of the equipment decreases since your payments stay fixed.
ARE THERE TAX BENEFITS ASSOCIATED WITH LEASING?
Yes.
Any business wishing to acquire capital equipment should seek the most tax-efficient option.
All lease payments are treated as an allowable business expense, attracting tax relief for the full duration of the lease agreement.
Your accountant will be able to confirm this for your specific situation.
HOW DO I MAKE MY PAYMENTS?
All payments are usually made by Direct Debit on the same date each month or quarter.
Quarterly invoice payments may be available, although an additional 2% bank charge applies for this facility due to extra administrative work.
SHOULD I GO TO MY BANK?
Using your bank for all business funding is not always a good practice.
If you use all your overdraft facilities, you may find yourself vulnerable to short-term borrowing needs.
Banks may:
Change the interest rate mid-way through a loan.
Reduce overdraft facilities, impacting your cash flow.
Limit lending amounts without additional security (such as a charge on your home).
It is not financially prudent to have all your eggs in one basket.
WHO LEASES?
Nearly every market sector, large or small, benefits from leasing — from new start-ups to large established companies.
HOW DOES A LEASE WORK?
A lease agreement is a contract between you (the customer) and a leasing company.
This allows you to use equipment over a period of time by making regular payments to the leasing company.
With a typical lease agreement:
You make monthly payments instead of one large capital outlay.
This helps maintain healthy cash flow.
HAVE THE BEST EQUIPMENT
You normally pay only one monthly payment in advance with a lease agreement.
This enables you to choose the best equipment available with a small initial cash outlay.
You get access to the latest technology and can start generating extra profits before your next payment is due.
The full invoice amount is settled with the supplier upon the equipment being installed or delivered.