The major benefits of leasing explained
Ease of Acquisition
As Leasing rarely involves the payment of a large deposit, there is usually a negligible impact on cash flow by entering into a Leasing Agreement.
Fixed Price Budgeting
Leasing rentals are fixed at the outset and cannot be varied by Kingsway if interest rates alter in the course of the Lease Agreement.
Preserve Existing Lines of Credit
By arranging your Leasing with Kingsway, you will not affect your existing bank credit lines. If you arrange a lease with your bank owned leasing company, your bank credit lines will often be reduced by the amount of the leasing facility. This could be very damaging if you wish to increase your bank facilities.
Tax Relief
Tax Paying organisations can offset 100% of lease rentals against their taxable profits. This can lead to a substantial saving, the exact amount dependent on the rate of tax paid by your organisation.
"Pay as it Works"
It makes sense to pay for Equipment as you derive the benefit of using it within your business. Why outlay large sums in advance of receiving the benefit gained from the use of the Equipment?