Lease Purchase

This offers the end user eventual ownership of the equipment after spreading the cost and interest over an agreed period (normally 2 to 7 years) through fixed monthly payments. This asset is put on your balance sheet and offset 'capital allowances' against taxable income at a rate of 25% per annum on the reducing balance. ('Small companies', as defined by the DTI, can offset 40% of the equipment value in the first year). All of the interest charges can be set against taxable income. At the outset of the agreement you pay the total VAT on the equipment cost, together with any deposit. This is 'on balance sheet' funding so the outstanding payments are shown on your balance sheet as a liability. Maintenance and repairs are not included in the cost. So if you don't want to place constraints on your cashflow with the costs of material handling equipment why not talk to H&F and ask us if we can help.

For more information on Lease Purchase talk to H and F Lift Trucks