Could Software Leasing work for you?
With 5.6M SMEs (firms with 0-249 employees) in the UK, representing 99.9% of all businesses, employing 24.3m people and delivering 51% of gross turnover, the importance of SMEs to our economy cannot be underestimated.
However, in a recent Federation of Small Business (FSB) survey, it was suggested that access to finance remains a key concern for small to medium size businesses in the UK with only one in eight seeking external finance. With over 50% of small businesses (50.4%) looking to expand in the next twelve months, despite ongoing economic uncertainty in the UK, the tension between these aspirations and access to finance is worth considering in more detail.
What are the benefits of leasing software?
Tax Benefits – Unlike cash, a lease unlocks 100% tax relief (on both capital and interest) and for many customers can make a huge difference. Match Costs to Return – With cash, ultimately you pay upfront and in full for investments which only return value over time. Why not simply spread your costs in line with your return?
Low, fixed costs – With rates fixed throughout the term, budgeting and planning are made simple.
Spread the VAT cost – VAT is paid in instalments rather than a lump sum upfront (excluding Hire/Lease Purchase agreements).
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