New Start Businesses – Lease Application Process Explained

So you’ve got a new start business and you want to lease your IT equipment. What do you need to do, and how does it work? If you are a new business you are probably well aware of how difficult it is to establish a credit history, as well as how traditional financing methods such as banks can be difficult to deal with. HardSoft can provide from £1,000 to £15,000 of lease finance to new businesses, which can include both hardware and software.

Here we explain our simple application process for new start businesses:

  1. The first step is to establish whether you are a homeowner.
  2. If you are a homeowner, we will ask you for bank statements (either business or personal) in order to assess your ability to meet the lease repayments. If you are not a homeowner, we will ask you to provide a guarantor, such as a director, shareholder, or relative.
    • Unfortunately, if you’re unable to provide a guarantor we won’t be able to proceed with your lease application.
  3. Once you have provided your bank statements, we will review them to prove you can cover payments.
    • A Limited Director’s Indemnity may be requested if you have set up a new Limited Company.
    • If we cannot be satisfied that you would be able to make the repayments on your lease we will not be able to proceed with your application.
  4. If you are looking for an amount in excess of £10k we will request to see your business plan or proof that you have external investment in your business.
    • Once we have seen either your business plan or proof of external investment we will complete your application and proceed with any credit searches.
  5. If you are requesting less that £10k we will complete your application and proceed with any credit searches.

The first payment will be equivalent to one month’s payment, which can be paid by debit or credit card. Occasionally we may require the lease to be over 24 months (rather than 36) and a deposit of three months maybe requested should the ability to repay be difficult to assess.

Leasing remains the most tax efficient method of acquiring new computers – just ask your accountant! – and here are some reasons why you will want to finance new computers with a lease:

  • You can use the equipment immediately without having to pay the full cost price, keeping your cash flow intact.
  • You will be able to keep other financial arrangements available to you, such as credit and bank loans.
  • You can budget effectively because your repayment costs will remain fixed for the duration of the lease agreement.
  • You can offset lease payments against your annual taxable profits.

If you would like to learn more about leasing, or find out what is the best equipment for your requirements, get in touch with our knowledgeable sales team who will be happy to talk through the process and products available with you. Contact sales@hardsoft.co.uk or 020 7111 1643.

New start business lease process and guidelines

 

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