Leasing is a financial contract between you, the customer, and a leasing company. You will be committed to repay a given number of fixed rentals for the term of the contract (for example 36 monthly payments of £100). Payments can be monthly or quarterly by direct debit, and your first payment is normally 7-10 days after your equipment is delivered.*
The advantages of leasing:
- Your equipment can be changed, modified and expanded at any time without penalty, and after eighteen months you will be given the option to upgrade.
- Immediate use of the equipment without paying the full cost price, assisting cash flow.
- Leasing your equipment allows you to use any other financial arrangements you have, credit and bank loans for example, to run your business.
- As your lease costs are fixed for the duration of the agreement, you can include each year's payments in your annual budget and remove any guesswork.
- You will be able to offset all lease payments against your annual taxable profits. Full tax relief on any leased equipment should reduce your tax bill, whereas with outright purchase or a hire purchase type of agreement only writing down allowances are applicable.
- Hardsoft is the only computer leasing company which will allow you to own your equipment for a nominal figure (£1 plus VAT) at the end of the term.
Lease Upgrades
Once you have one of our leases, you may take advantage of the Renewal Option, which allows users to take given percentages of the new equipment (via the following Allowance Table) without the need to increase rental payments. Our RETURN, RETAIN, RENEW options for Apple Macs are built around this core.
The table below illustrates the upgrade allowance that can be used to add equipment and services to an existing agreement at any point throughout the contract.
SYSTEMS UPGRADE TABLE
| Quarters Paid | 36 Mths % | 48 Mths % | 60 Mths % |
| 1 | 6 | 4 | 3 |
| 2 | 13 | 9 | 6 |
| 3 | 20 | 13 | 9 |
| 4 | 27 | 18 | 13 |
| 5 | 35 | 23 | 17 |
| 6 | 43 | 29 | 20 |
| 7 | 51 | 34 | 24 |
| 8 | 60 | 40 | 29 |
| 9 | 70 | 46 | 33 |
| 10 | 79 | 53 | 38 |
| 11 | 89 | 60 | 43 |
| 12 | 67 | 48 | |
| 13 | 75 | 53 | |
| 14 | 83 | 59 | |
| 15 | 91 | 65 | |
| 16 | 71 | ||
| 17 | 78 | ||
| 18 | 85 | ||
| 19 | 92 |
For example, imagine you are looking for £4,000 of IT equipment, which is £280 per quarter over five years, however after three years you wish to expand the system. The Renewal Upgrade Option means that at this stage of the term (three years) your equipment is subject to a 48% upgrade allowance. This means that by signing a new five year agreement, keeping your monthly payment the same, your business can have an additional £1,920.00 of equipment while retaining the old.
*If the equipment fails to work you must continue paying the rentals. Non payments breaks your contract with the leasing company. You must advise the leasing company immediately and HardSoft’s team of experts will attend to your problem.
