Leasing FAQ's


Your Leasing Questions Answered

 

Q. I haven’t used leasing before.  

A. Don’t worry, 8 out of 10 accounting firms, Government bodies and 85% of the Times Top 100 companies all use leasing; you will be joining good company.

Q. What is the minimum value I can place on a lease & over what term?

A. The minimum is £1,000 and you can generally choose a term between 12 & 36 months, typically electing to pay your rentals monthly or quarterly but other payment profiles are available.

Q. How are the rentals treated for VAT?

A. Rentals attract VAT in the normal way.

Q. Will I have to pay by Direct Debit?

A. Like most industries you will benefit from the lowest payments if you pay by DD, but it may also be possible to request an invoice only arrangement.

Q. Will I have to put down a deposit?

A. No, you only make your first payment when you take delivery.

Q. Will I own the equipment at the end of the term?

A. With a standard rental agreement you will be offered a number of alternatives at the end of the agreement period whereby you can retain the use of the equipment for as long as you want. However, for you to have gained the best tax advantages during the term you will not legally own it.

Q. What happens if the goods become obsolete or need to be upgraded?

A. One of the main reasons for leasing is to match the rental term to the duration you believe the product will have a fully productive life. You can at any point in the rental period upgrade the equipment and your payments will alter accordingly. The upgrade path is another benefit of leasing.

Q. Can I lease the use of software or other non-tangible items?

A. ECUK can offer facilities to finance items such as these.

Q. What happens if I don’t keep up the payments?

A. Like any agreement, you are agreeing to make the payments as set out in the document, if you fail to make these payments then steps will be taken to remove the leased goods and enforce the terms of the agreement.

Q. Will signing a lease reduce my ability to gain credit elsewhere?

A. No, signing a lease through ECUK will leave all your present lines of credit in place, if anything it will help you gain more credit in the future.

All agreements are subject to status and satisfactory credit checks


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