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Introduction Vendor Finance Operating Lease HP, Lease Rental and Cash Questions or Enquiries Asset Finance Services Public Sector Finance News
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An HP or Lease agreement
matched to the economic life of equipment is the most appropriate of all
the financial alternatives.
It may not however be the cheapest option and the benefits versus this cost must be assessed. Many companies will use return on capital, cost of funds and cash flow planning in deciding on their investment strategy. The small business module allows these elements to be considered using a simple online input. Legislation culminating in the Finance Act of 2006 ( Deloitte UK Budget Report 2006 Leasing:the new regime ) has erased the tax advantages once enjoyed by leasing and the complications introduced for how or if the lessor claims capital allowances can be viewed as a disadvantage to the finance lease option. This is especially true for the SME lessee when often First Year Allowances available to the small business can not be reflected in the leasing option. |
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