Why lease your coffee machine instead of purchasing it?
There are many things to consider when financing your new coffee machine.
Whilst a 'cash' purchase will always be cheapest since you won't have any interest or fees to pay, it may not always be the best option.
Bridge Coffee offer a range of purchase and finance options.
Benefits to leasing, including -
- Keep cash flow within your business.
- Get the Coffee Machine you want when you need it.
- Get a better-specified, more expensive machine.
- Structure your lease payments to suit your budgetary needs and allowances.
- Pay monthly or quarterly over a chosen period of time rather than handing over one large lump sum.
- Keep up with the latest technology & solutions by upgrading the equipment at any time throughout the lease period.
- Protect your existing credit lines by using leasing as an alternative funding facility.
Leasing is not expensive!
Many people believe leasing is an expensive option. This simply is not the case. This is why even large ‘cash rich’ companies choose to lease. Unlike many high street bank facilities or overdrafts that are subject to changes in market conditions, a lease facility with its protected payment and fixed interest rates allows for effective future budgeting.
100% allowable against pre-tax profits!
Because finance lease rentals are 100% allowable against pre-tax profits, the total cost of your purchase, capital and interest can be offset during the lease period, with your payments deducted as a trading expense. A cash purchase will allow tax relief only on the capital allowances on the equipment. This is currently 18% of the cost in the first year and 18% in subsequent years based on a reducing balance each year.
How the leasing process works
1 Select the right machine
Tell us what you're looking for, the types of drink you want, how much space you have, and an estimate of how many drinks per day you'll need.
Alternatively, if you know the machine you want, simply tell us.
2 Get an instant quote
We'll provide a clear quote based on your needs, together with all the costs, over the period that you want, typically 3 or 5 years.
3 Approval & paperwork
With our finance partners Shire Leasing PLC, we can usually get you a decison-in-principle within a few hours.
Documents are sent for electronic signing.
4 Delivery & installation
We'll manage everything for you, including a delivery date and time.
Our installation team will quickly install and set-up your machine, and provide expert training on cleaning and routine maintenance.
Take a look at this example
Based on a coffee machine package with a value of £4500.00 ex vat.
Cash purchase with standard write-down of a capital asset.
Year 1 Capital Allowance 18% of £4500.00 = £810.00 Tax Relief @ 19% = £153.90
Year 2 Capital Allowance 18% of £3690.00 = £664.20 Tax Relief @ 19% = £126.20
Year 3 Capital Allowance 18% of £3025.80 = £544.64 Tax Relief @ 19% = £103.48
Total Tax Relief £383.58
Lease Rental paid monthly over 3 years.
Year 1 Capital Allowance 12 rentals of £189.77 = £2277.24 Tax Relief @ 19% = £432.68
Year 2 Capital Allowance 12 rentals of £189.77 = £2277.24 Tax Relief @ 19% = £432.68
Year 3 Capital Allowance 12 rentals of £189.77 = £2277.24 Tax Relief @ 19% = £432.68
Total Tax Relief £1298.04
These figures are for illustration only.
Tax Benefits are dependent upon your individual circumstances.
It is your responsibility to seek the appropriate professional advice.