There are many reasons to finance a capital purchase through borrowing, rather than putting your budgets under pressure. A compelling reason to do this is the ECA Tax Incentive. As mentioned earlier in our website, the ECA Scheme (Enhanced Capital Allowances) is an initiative which encourages the use of energy efficient equipment, allowing 100% of the system costs to be claimed in the first year, rather than over 8 years - as is normal for capital expenditure.
By choosing equipment which qualifies for the ECA and combining it with a leasing agreement, the 100% allowances can still be claimed during the first year, despite a project not being paid for in full. Project costs can be spread over a 3 or 5 year period and the full tax incentive can be used in the first year. Leasing is a very tax-efficient method for businesses to acquire a range of capital equipment – providing a positive solution to budget limitations.
Realising the effective benefits of leasing, air cool engineering systems has established a strong relationship with a reputable leasing company who, upon your instruction, we can approach to obtain an initial 3 or 5 year quote for your project. If leasing for you, is the solution to financing capital equipment purchases, we will introduce you to the leasing company and leave you to make the deal with them.
What difference will leasing
make to your business?
• 100% Tax Allowance
• Effective use of your budget – helping you manage your cash flow efficiently
• Flexible Payment Plans – payments made monthly or quarterly, and over a 3 or 5 year period
• By spreading the costs, your business can afford a system that meets your needs
• Payments are unaffected by fluctuating interest rates
Finally, the financing can be offered on the complete value of a project – not just air conditioning! If additional mechanical work is required, such as plumbing, electrics and ventilation, these too can be arranged through the same financing agreement, keeping things simple.
For further details on how air cool engineering systems can advise you on financing your capital purchases through leasing, contact us through our web enquiry form or telephone us direct on 01438 880 326.