Have you considered the benefits of leasing for an office refurbishment?
- Carl Brown
- General, Office fit out, Office Fitting, Office Partitions, Shop Fitting
Leasing for an office refurbishment can be an overlooked option that can provide a business with the liquidity to operate.
Giving businesses the cash to operate – 5 reasons why you could use leasing for an office refurbishment
Cash flow is important to all businesses, and leasing provides an instant access to cash, which effectively means you are paying for your asset when you use it. Leasing options on average are for three years, meaning you pay for the refurb over the life of the lease, spreading the cash flow out as you are using the asset.
By doing this, a business can use the cash for working capital, such as paying bills, staff costs and overheads, rather than tying up the fix lump sum at the outset.
- Leasing no longer requires large up-front payments to allow you to retain cash in the business freeing up valuable working capital allowing you to invest your cash in generating revenue
- Fixed payments for accurate budgeting and effective forecasting. Monthly payments are fixed for the duration of the lease making budgeting simpler and eliminating unexpected variations in interest rate
- Pay for the asset as you use it. Our flexible options can mirror your fit-out lease to the lease of your office or to your lease break-point
- Payments are 100% Tax allowable. Lease rental payments are 100% allowable against taxable profit. It’s the only method of financing that offers these tax benefits. Leasing is the most tax efficient method of financing a fit out
- Existing bank credit facilities are unaffected. Our leasing options leaves your credit rating clear and free so you can invest in other business developments & opportunities
Leasing for an office refurbishment provides certainty
Certainty – a word businesses crave right now. Leasing will provide just that. Payments are fixed – providing certainty of monthly cash flow. During these times that’s absolutely critical.
Improving cash flow
The government have offered various facilities during the coronavirus pandemic, which can be challenging to get hold of. Leasing options are a simplistic way to attain additional funds. Requirements depend on industry statements; however, it is worth exploring directly with a leasing company to discuss your options.
Turnkey funding
Leasing can cover all aspects of the fit out – from design, build and even furniture. If you have already funded your project and are now short of cash for other requirements such as software, some leasing agents offer retrospective leasing.
Leasing for an office refurbishment is tax efficient
Leasing is more tax efficient for businesses because monthly instalments are offset against tax. The tax benefit must be ongoing and can only apply if you are paying UK corporation tax.
A wide variety of clients have used leasing as an option
We have seen a wide variety of our clients use leasing options, including occupiers from small to medium enterprises, to larger corporations. Landlords also have access to leasing to, allowing them to retain cash within investments and structure cash flow to pay off the asset. With the economy in turbulent times, we’ll start to see a rise in leasing options to support businesses in the future.
Leasing your fit out can make sound financial sense. Please do not hesitate to contact us to see how we can make a real difference by designing and fitting out your workspace for wellbeing
We provide a full ‘turnkey from Concept to Completion. Including design, planning, building control and landlord consents. Full M&E design, lighting, data, power, Cat A & Cat B fit outs to include all furniture, fixture and fittings
In the meantime, you can try our finance calculator to see if you find the possible monthly lease manageable in your business.