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Your Leasing Questions Answered
 
How popular is leasing in the UK today?
 
  • Leasing is extremely popular, 8 out of 10 accounting firms, Government bodies and 85% of the Times Top 100 companies all use leasing.
 
What is the minimum value I can place on a lease & over what term?
 
  • The minimum is £1,000 and you can generally select a term between 12 & 36 months, typically electing to pay your rentals monthly or quarterly, although other payment profiles are available.
 
How are the rentals treated for VAT?
 
  • The rentals are fixed, based on the value of the asset without VAT added. The VAT is charged against each rental payment.
 
Will I have to pay by Direct Debit?
 
  • Like most industries you will benefit from the lowest payments if you pay by DD, but it may be possible to request an invoice only arrangement (subject to credit checks).
 

Will I have to put down a deposit?

 
  • No, you only make the first rental payment when the goods are delivered.
 

Will I own the equipment at the end of the term?

 
  • With a standard Lease Support Desk (LSD) rental agreement you will be offered a number of alternatives at the end of the agreement. Under these you will be able to retain the use of the equipment for as long as you want, however, for you to gain the best tax advantages during the term you will not legally own it.
 
What happens if the equipment becomes obsolete or I need to upgrade it?
 
  • One of the main reasons to lease is to match the rental term to the duration that you believe the product will have a useful life. You are however free to request an upgrade of the equipment but this may affect your rental payments.
 
Can I lease the use of software and other non-tangible items?
 
  • LSD can arrange this facility for you in most cases.
 
What happens if I don't keep up the payments?
 
  • As with any legally binding agreement you are committing to make payments as set out in the document. Failure to meet the payments will result in the removal of equipment and any other actions as set out in the terms and conditions.
 
Will signing a lease reduce my ability to gain credit elsewhere?
 
  • No, signing one of our agreements will leave all of your present credit lines in place.
 
All agreements are subject to status and satisfactory credit checks.
 
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