WHERE LOCAL BUSINESS GROWS

Leasing



Overview
 

Your business might need to acquire assets (like furniture, computer equipment or company vehicles) or capital equipment, such as plant or machinery.

You could buy your assets or equipment outright, or you might decide to rent them instead. This allows you to get the equipment and assets you need that you might otherwise be unable to afford. It can also free up working capital for use in other areas of your business and save you from having to take out a large loan to buy equipment outright.

You may want to lease or rent equipment that has high maintenance costs, can quickly become outdated, or is only used occasionally.

There are three main types of lease agreement – finance leasing, operating leasing and contract hire – and you should carefully consider which one is right for your business.

The process
 

There are different kinds of lease arrangement. You should consider them all to see which is best suited to your business and the asset that you are acquiring.

Finance leasing

Finance leasing is a long-term lease over the expected life of the equipment, usually 3 years or more, after which you pay a nominal rent or can sell or scrap the equipment - the leasing company will not want it any more. Although you don't own the equipment, you're responsible for maintaining and insuring it.

You must show the leased asset on your balance sheet as a capital iteman item that has been bought by the company.

Leases of over 7 years, and in some cases over 5 years, are known as 'long funding leases'. You can claim capital allowances under long funding leases as if you had bought the asset outright.

Operating leasing

With operating leasing, the leasing company is responsible for maintenance and insurance, and they will take the asset back at the end of the lease. You don’t have the show the asset on your balance sheet.

Operating licensing is useful if you don’t need the equipment for its entire working life.

Contract hire

With contract hire, the leasing company takes some responsibility for management and maintenance, such as repairs and servicing. You don’t need to show the asset on your balance sheet. Contract hire is often used for company cars.

Pros and cons
 

Pros

  • you don't have to pay the full cost of the asset up front, so you don't use up your cash or have to borrow money
  • you have access to a higher standard of equipment, which might be too expensive for you to buy outright
  • you pay for the asset over the fixed period of time that you use it, which helps you budget for the future
  • interest rates on monthly rental costs are usually fixed, so it's easier to forecast cashflow
  • you can spread the cost over a longer period of time and match payments to your income
  • you can usually deduct the full cost of lease rentals from your taxable income
  • if you use an operating lease or contract hire, you may not have to worry about maintenance
  • the leasing company carries the risks if the equipment breaks down
  • the leasing company can usually get better deals on price than a small business could and will have superior product knowledge
  • on ‘long funding leases’ - finance leases over 5 (or sometimes 7) years - you can claim capital allowances on the cost of the assets
  • if you need to upgrade or replace the equipment, you can just make a small adjustment to your regular payment rather than invest a lump sum upfront
Cons
  • you can't claim capital allowances on the leased assets if the lease period is for less than 5 (or sometimes 7) years
  • you may have to put down a deposit or make some payments in advance
  • it can work out to be more expensive than if you buy the assets outright
  • your business can be locked into inflexible agreements, which may be difficult to terminate
  • leasing agreements can be more complex to manage than buying outright and may add to your administration
  • your business normally has to be VAT-registered to take out a leasing agreement
  • when you lease an asset you don't own it, although you may be allowed to buy it at the end of the agreement

Common mistakes
 

Leasing is most useful for equipment and assets that you can’t afford to buy.

You may want to buy equipment or assets rather than lease them if you don’t want to enter into a long-term leasing agreement or want to keep your long-term costs down – it's often more expensive to lease equipment or assets than to buy them outright.

Funding sources
 

The types of companies that offer hire purchase and leasing contracts include:

  • subsidiaries of major UK banks
  • providers owned by manufacturers, such as car manufacturers
  • non-UK banks
  • independent finance houses
  • equipment suppliers
  • members of the Finance and Leasing Association (FLA)
When assessing the most appropriate leasing company to use, make sure that:
  • the provider is a reputable company, preferably a member of the FLA
  • your contract corresponds with any verbal or written quotations
  • the length of leasing agreement covers the period that you need the asset for
  • you are aware of any financial penalties that may be incurred if you wish to end the agreement early
  • the equipment you are leasing is new
  • you have read the contract carefully before signing it - checking the total cost, the period of hire, notice periods, the contract terms and conditions and charges

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News

4 results found 
Kirklees’ Biggest Business Conference Returns

Tuesday 06 February 2018

Following on from the huge success of the 2017 Conference, the Mid Yorkshire Chamber is delighted to be hosting their 2018 Kirklees Business Conference (KBC) at John Smith’s Stadium, Huddersfield on Wednesday 21st March. The free, one-day conference has become an unmissable event in the local business calendar which is dedicated to helping businesses to connect, learn and grow. Attracting over 600 business people and 50 exhibitors, KBC includes a fantastic programme of engaging seminars, a discussion panel, surgery sessions and open networking throughout the day. This year the Mid Yorkshire Chamber is proud to announce an official partnership with Google bringing a Digital Garage to KBC as part of the seminar programme. Running alongside the four seminar sessions, more surgery sessions will also take place following their success last year. Held by local businesses located in the stadium boxes, the surgeries will provide the opportunity for companies to run their own seminars, workshops or one to ones. Rory Bourke, Events & Sponsorship Co-ordinator at the Chamber said: ”Kirklees Business Conference is definitely shaping up to be a day not to be missed. The conference is a fantastic opportunity to raise your profile, make new contacts and learn from other experienced professionals. There are many opportunities for local businesses to get involved through sponsorship, exhibiting or attending as a delegate.” Confirmed conference sponsors and partners include; AD:VENTURE, The John Smith’s Stadium, The Design Mechanics and Social Progress. Delegate tickets are free but registration is essential, significant interest is anticipated therefore early delegate booking via www.kirkleesbusinessconference.co.uk is advised to avoid disappointment. For further information about the conference follow @MYBizConfs and #KirkleesConf on twitter. To find out more about sponsoring or exhibiting at the event please email events@mycci.co.uk or call 01484 483679.
Posted by Mid Yorkshire Chamber of Commerce
Smith Brothers spins towards a £2.5k festive fundraising total

Tuesday 19 December 2017

Elland-based electrical engineering firm Smith Brothers has completed a week-long festive fundraising venture, raising more than £2,500 for three charities. The main event saw two squads of eleven competing in an indoor ‘bikeathon’ at the company’s HQ last week. With one side representing the British Heart Foundation and the other Diabetes UK, both were tasked with racing the equivalent distance of 206 miles from the Lowfields Business Park boardroom to Big Ben. Although the British Heart Foundation cyclists were first to cross the finish line, both teams far surpassed their initial fundraising targets of £500 each. Donations amounted to £1,283.82 for the winners and £1,193.94 for Diabetes UK. The power engineering contractor also raised £100 for Save the Children through a bake sale and sweepstakes competition, which were held alongside the bikeathon. Elaborating on the successful fundraising activities, managing director Nick Gudgeon said: “It goes without saying that festive spirits were high in the office during last week’s charity cycling challenge – and competitive streaks were revealed too! “Even though my team narrowly lost out on the winning title, it was still brilliant to get involved with the bikeathon and we’re thrilled to have beaten our sponsorship goals for both organisations. It’s always uplifting to see people rallying together in aid of such worthwhile causes, and we’re especially grateful to the volunteer cyclists for taking part, AKTIV Training Coach for lending us the bikes and all those who generously donated.” Earlier in 2017, Smith Brothers also backed a golf day in aid of the Quaggy Development Trust and sponsored a benefit dinner hosted by Frank Bruno for the Nigel Harris Sports Foundation. The company additionally sponsors an under 9s football team as part of its community support.
Posted by Scriba PR Limited
Around Town In the Huddersfield Live Hygge Tipi

Wednesday 15 November 2017

What better time to get together than Christmas? Around Town believe that connecting the business community of Huddersfield in its iconic locations and organisations is a brilliant way to share ideas, hear inspirational stories and have some FUN. Organised by Oli Smith, Michelle Crowther and Chris Buckley Around Town create memorable events every 3 months. 2018 plans are already underway; “as well as meeting at some amazing businesses we are walking Around Town in Spring - a fantastic way to get to know each other whilst experiencing some award winning locations and scenery in Huddersfield “ says Michelle And with Huddersfield Live December promises to be a memorable Around Town event. Hosted in the Hygge Tipi in St Georges Square, hear Sam Watt and Poppy Stahelin tell of the fabulous work the team at Huddersfield Live are doing and some of the stunning events planned for next year. Laura Drury sets the backdrop of how she formed the The Hygge Tipi and how it creates a convivial atmosphere for Huddersfield folk to mingle, drink mulled wine, and keep the winter night out in front of the log fire. All In the heart of Huddersfield. Tickets are limited and can be reserved FREE here. Chamber members old and new are very welcome. Around Town Events for 2018 confirmed. March 1st - Valli Opticians May 17th - Owen Scott Tailors May 25th - (Walk) Around Town - 15miles (approx) Breakfast Sarnies, The Kirklees Way, Finish in a Brewery!
Posted by The Alternative Board
Group supporting crisis-hit asylum seekers wins crowdfunding cash at Huddersfield SOUP

Friday 10 November 2017

A charity that feeds and supports people fleeing war zones and violence gained a boost to its funds after winning the fourth Huddersfield SOUP event at The Media Centre. Destitute Asylum Seekers Huddersfield (DASH) was one of four good causes to pitch for audience members’ £5 entry fees at the packed crowdfunding get-together at Café Ollo and was delighted to win £400. Mike Shaw, who presented a four-minute bid, explained how DASH provides hot meals and help with casework, health and education issues and language. He said: “We will spend this money well, it won’t last long. It will go on food, bus fares and essentials. It is wonderful to be in room full of people who care. Thank you for the generosity of the citizens of Huddersfield.” Huddersfield SOUP, which has been running for a year, is based on an American concept in which four people pitch, four questions can be asked of each presenter and then the audience must vote for their favourite – as well as enjoying a bowl of warming soup, a bar and live music. The Media Centre’s Chief Executive, Brent Woods, said: “This was another great SOUP event with original, emotive pitches. The atmosphere was buzzing and there was plenty of opportunity for participants to meet new people and make connections. Big congratulations to DASH, our worthy winner.” Other people to pitch were: • Rachel Devereux who wants to develop her idea of ‘emergency bears’ for families to keep in their cars so that if there is an accident, paramedics can scan the bear electronically to receive important information about children on board. • Victoria Callum-Ward who is organising a Winter Pride event at Tokyo in Huddersfield to raise money for the Hands Off HRI campaign. • Sam Booth who talked about Crowns For Courage, her initiative to offer confidence-boosting head henna tattoos to women who have undergone chemotherapy and lost their hair. The event was compered by Rebecca Winwood, Zephyr Bar and Kitchen provided delicious pumpkin and pea and ham soups and Clint Junior, booked through Small Seeds acoustic nights, sang and played guitar. Those seeking help from DASH include women fleeing forced marriage and domestic violence, gay men facing persecution and many escaping war zones and conflict. Often they don’t know if they will be allowed to stay in the UK and find it difficult to prove what they have been through. DASH operates from the Salvation Army premises in New Hey Road, Oakes. It has five part-time staff who are paid for through charitable trusts as well as over 50 volunteers. For more information about DASH or to donate, go to www.huddsdash.org.uk
Posted by Scriba PR Limited
4 results found 

Events Posted

2 results found 
Image for
Kirklees Business Conference
Wednesday 21 March 2018 - Wednesday 21 February 2018, 09:00 - 16:00
John Smith's Stadium, Stadium Way, Huddersfield, HD1 6PG
Free Entry
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Business Diversification
Tuesday 17 April 2018, 17:30 - 20:00
3M Buckley Innovation Centre , Firth Street , Huddersfield , West Yorkshire , HD1 3BD
Free Entry - 70 places
2 results found 
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