What are the benefits of using Lease Finance for your furniture?
Achieve the level of quality they WANT instead of what they can afford
As Property Investors ourselves we know how costly refurbishments and conversions can be, and often they can run over budget. This can therefore mean that at the end of a project when you come to furnish your property, finances are wearing thin and you have to skimp on furnishing budgets as the capital is not available. Using Lease Finance to purchase your furniture through Amplo Leasing means you can avoid this pitfall and still achieve the quality of finish you desire without the initial outlay.
Keep their Capital to invest more
Further to the above, we also know as Investors that capital is king. Why tie up your precious capital in furniture when you could use it for your next deal?! Lease Finance means there is no large upfront outlay from you, instead the Finance Provider pays the supplier directly and then you pay them back over 36 monthly instalments.
Your Customers/Tenants pay for your furniture
By taking Lease Finance and spreading the cost over 36 monthly affordable payments you can pay for your furniture out of the property’s monthly cashflow. This therefore means that effectively your customers (or tenants rental payments) are covering the cost for you.
Be 100% tax efficient in your Business
Your monthly lease payments can be claimed as a revenue expense rather than capital expenditure, and can therefore be offset against corporation tax generating you a healthy tax saving. An example of this below:
– Furniture Value (ex VAT): £6000
– Term: 36 months
– Approx monthly payments for a new company (ex VAT): £233.17
– Total Repaid: £8394
– Total Interest Paid: £2394
– Corporation Tax Relief @ 19%: £1595
– Net Cost of Finance: £799
– Relative Annual Interest Rate: 4.44%
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