Leasing v Purchase – According To Synergy Professions

Search:

Leasing v Purchase – According To Synergy Professions

Synergy Professions specialises in providing practices like yours with tailor made financial solutions, bridging the gap between you and the ever more distant banks and finance companies; to date we’ve provided over £50,000,000 of financing to businesses just like yours.

Tax Benefits : With leasing (Operating, Contract Hire and Finance) contract repayments are 100% fully tax allowable this differs from outright purchase options where only the capital allowances can be claimed against tax. If your potential purchase is made via a Lease/Contract Purchase or with a Practice Loan then you can also reclaim the interest charges against tax.

Cash-flow Benefits : By leasing you are not only preserving the working capital of a business but you are being more tax efficient. It will enable your business to use the working capital to invest for growth or in assets that have the potential to appreciate. Lease/Contract Purchase options also preserve working capital but are not as tax efficient compared to Operating and Finance Leasing options. Thus, outright purchase options will use up your available funds and are not as tax efficient. So finance for professionals is very important.

Credit and debt status : Operating Lease and Contract Hire options will preserve the credit status of a business as lease payments are normally classified as an expense and not debt -operating leases and Contract Hire arrangements are regarded as “off balance sheet”. This therefore preserves the flexibility to utilise any further debt facility (from the bank/specialist lender) for other more growth focused requirements.

Balance sheet : If an asset is purchased (outright with a practice loan or with Lease purchase) or acquired using a Finance Lease then it will show on the balance sheet since it is ultimately owned by you. However Operating Leases and Contract Hire options keep assets acquired in this way off the balance sheet thereby further protecting your credit status.

VAT : With all other purchase options VAT is payable up front whereas with Operating and Finance Leases VAT is payable over the term of the lease thereby further protecting cash-flow.

Exposure to obsolete technology: Leasing options which enable the lessee to hand back the asset at the end of the agreed term help the lessee to benefit straight away from improvements in new technology associated with the particular asset. However if the asset has been purchased outright there is the challenge of finding a buyer for the older asset before a new purchase can be made. Finance for professionals is best thing for professionals today.

Article Source: http://articlenexus.com

Looking for on business funding. Synergy Professions provide specialist funding for professionals. Contact Synergy Professionals for Dentist Finance, Accountants Financial Needs, Finance Solicitors and other Professionals.

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Investments Articles Via RSS!

Additional Articles From - Home | Finance | Investments

Double Your Investment Returns in 2009 - By : HomeBuyers
Worst Trades of 2008 - By : FT
Should you worry about having your short options exercised? - By : NicciandLee.com
Now is the Time to Act: Part I - By : Joanne M Musa
Forex and Price Action Trading - By : Jimmy Davis
Managing Forex Accounts Made Simple - By : Leon Williams
Entrepreneur Business Opportunity and Market Demand - By : James Totty
Is Education needed to be an Entrepreneur - By : James Totty
Tax Deed Investing: A Better Way to Purchase Tax Delinquent Properties for Pennies on the Dollar, Part 3 - By : Joanne M Musa
Characteristics to be an Effective Entrepreneur - By : James Totty

STOP Paying for Your Ads! FREE Pay Per Click!

Everything you need for your website and home business.
	Adsense Site Builder
	Adsense Analyzer Software
	Clip Art
	Domain Names
	Header Graphics
	Make Money Online
	Photo Art
	Resell Rights Products
	SEO Software
	Web Hosting $4.95/mo
	Website Templates
	Web Site Promotion Tools
AdvancedWebsiteTools.com

	Print This Article
	Add To Favorites
	Email to Friends
	Ezine Ready

Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds

(Your 160x160 ad here)
Only $50 a month-click here

Link Exchange
Blog by WordPress
Privacy Policy
Terms of Service
About Us
Contact Us
Banner Advertisements

Have you Victimized by a Business or the Government? File your consumer complaints or business complaints at BusinessReporter.net!

Structured Settlement?
Free information to help you learn more about structured settlements, your rights, and how to select the best company for you.

Affordable Discount Dental Plans
Choose from over 30 top-quality national and regional discount dental plans. Save 10% to 60% on most dental procedures

Classic Autos
Replica Kit Cars

Links

Bad Credit Repair

Hair Loss Remedies

Steiff Bears, Antique Bears

Model Railroading | Model Trains

Fighting Foreclosure

toe nail fungus

Free Diabetic Supplies

Antique Radios | Ham Radios

Crazy Fox Review

Herbal Remedies