TELEPHONE SYSTEMS SUPPLIED BY OCTAGON COMMUNICATIONS LTD
BENEFITS OF LEASE RENTAL FINANCE
When financing your telephone system supplied by Octagon via CF Asset Finance (a wholly owned subsidiary of the Halifax Bank of Scotland) rather than outright purchase, your company benefits from the following:
- Retention of Capital, money can be spent much more profitably within your company. i.e. production, raw material purchasing, advertising, research and development, company acquisition, cash emergencies etc.
- The payments are fixed for the period of the agreement allowing effective budgeting and a hedge against inflation.
- Easier upgrades opportunities, a guard against equipment obsolescence.
- Payments are 100% allowable against taxable profits*.
COMPARISONS
| ACQUISITION BY OUTRIGHT PURCHASE | ACQUISITION BY RENTAL HIRE |
|---|---|
| OWNERSHIP – Advantage: - with use and technology the goods depreciate and have little financial asset value. | FULL USE – Advantage: - immediate benefits of the features the equipment brings to your business. |
| TAX ALLOWANCES – Advantage: - 25% written down allowance on a reducing basis. | TAX ALLOWANCES – Advantage: - 100% allowable against Taxable Profits. |
| EASE OF UPGRADES – Advantage: - Allows you to keep up with technology or business requirements with only an increase in the monthly/quarterly payments. | |
| BUDGET CONTROL – Advantage: - Fixed term and payments giving knowledge of future cost for the period of the agreement. | |
| ALTERNATIVE PAYMENT METHODS – Quarterly – Monthly – Low Start Scheme Step Rentals (payments start low and increase annually as your company profitability grows) Maintenance inclusive arrangements. |
*Please note this notification is given without any liability and we suggest for further guidance and advice you contact your professional advisor so as all relevant considerations are accounted for.
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