Furniture Finance & Leasing
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The Benefits of Finance
- Cost Savings: You don't have to pay any interest on the borrowed amount resulting in significant cost savings over the life of your financing period compared to traditional loans or credit cards with interest.
- Affordability: Finance makes expensive items more affordable by spreading the cost over a specific period without accruing interest. This can be particularly beneficial for start up salons and barbers or those looking to refit.
- Predictable Payments: With Financing, your monthly payments are consistent throughout the loan period, making it easier to budget and plan your finances.
- Grow with Confidence: Financing means manageable monthly payments, not large upfront costs. That makes it easier to expand, refresh your space, or open a new location, without financial stress.
- Your Dream Salon Without Compromise: Get the high-end chairs, stations, and décor you really wannot just what fits your current budget. Financing empowers you to design your ideal space from the star.
- Preserve Cash Flow: Why spend your savings all at once? Financing lets you spread out the cost of your furniture over time, so you can invest in staff, marketing, or retail stock without draining your cash flow.
Work Out The Perfect Finance Plan for you
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Use our interactive finance calculator to get an idea of the overall cost of leasing your equipment with finance.
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Leasing
Why Lease?
Leasing is probably the most popular method of financing new equipment today. Virtually any item of equipment can be leased from £1,000 to several hundred thousand pounds.
Should I pay cash or lease?
You may be able to afford to buy the equipment outright, but before you make this decision you must consider the following:
1. All leasing payments are rental payments and as such are an allowable business expense, therefore if a business is making profits they reduce the profit by the amount of the rentals you pay each year which in turn reduces your tax bill.
2. Lease payments are normally the same throughout the lease contract. This means that increases in interest rates do not affect you and enables you to budget your cash flow more effectively.
3. Leasing enables you to save your cash for other purchases such as new stock, staff training, advertising, new business opportunities and unexpected happenings.
Do my payments increase if Inflation or Interest Rates rise?
No. Your monthly payment is fixed at the start of the lease and so are unaffected by interest rate rises. This enables you to budget your cash flow more accurately. As inflation rises, because your payments are fixed the cost of the equipment reduces in real terms.
Are there tax benefits associated with leasing?
Yes. Any business wishing to acquire capital equipment should seek the most tax efficient way when doing this. All lease payments are treated as an allowable business expense and therefore attract tax relief for the full duration of the lease agreement. Your accountant will be able to confirm this.
How do I make my payments?
All payments are mainly made by Direct Debit on the same date each month or quarter. Quarterly invoice payments are available on occasion although an extra charge of 2% is made by the banks for this facility due to the extra administrative work involved.
Should I go to my bank?
Your bank may be able to offer you a cheap rate to finance, although if you use all your overdraft facilities you leave yourself in a vulnerable
Other Benefits of Leasing
- There are tax benefits to the salon as all payments made under a lease agreement reduce the taxable profit of the business by 100% of the charges – effectively reducing the net cost of the leasing package to the end user.
- Leasing can also help salons to protect and reserve other lines of credit (such as loans and overdrafts) and offers a viable, cost effective alternative to these funding methods.
- It also allows you to choose the perfect equipment and furniture for your individual salon instead of compromising on something to suit your budget.
- You can keep more of your profit within the business and support future growth.
- You are the owner of the furniture when you reach the end of the agreed time-frame.
