Whether you’re thinking of starting up a new automotive business or want to expand on your current garage and need equipment to get going, you’re probably trying to decide how to purchase that equipment.

The two major options that you might go with are leasing equipment or using a small business loan to purchase the equipment.

In general, equipment lease is better than a small business loan.

Here are reasons why:

• Improve Cash-flow
  Leasing allows you to purchase equipment that is important to your business and keep valuable cash in your bank that may be used for other projects that are not as tax efficient. You can use the loans that you qualify for to get other things the business needs. A business can only get so much money on loan so you want to use it wisely.

• Ownership of the Equipment
  We offer the customer ownership of the equipment at the end of the lease. No collateral required. The equipment is the collateral which means that you don’t have to risk losing any other assets when you get a lease.

• Unsecured Borrowing
  The equipment that is leased is the only security necessary. No property is used as security. It doesn’t take a lot of money to start leasing the equipment. Minimal investment is always good for a start-up.

• Fixed Rate Payments
  All payments are fixed for the period of the lease and are only affected by changes in VAT and Capital Allowances.

• 100% Tax Efficient
  All leasing payments are 100% tax allowable. Every payment that is made on a leasing agreement could qualify to reduce a businesses Corporation Tax bill.
   

There are some businesses which benefit from using loans to get their machinery. However, most businesses find that these five benefits outweigh any potential benefits of a loan. Any new business should review these options carefully.