compressed air compressor Tel: 01480 217904
Fax: 01480 217409

Unit 2 Steel Close
St Neots, PE19 8TT

Leasing and finance options for air compressors

An honest analysis of purchasing options

In this example we offer our most popular air compressor
The Genesis 11/08
11KW Rotary Screw Air Compressor
Integral dryer, filtration & air receiver

Costings

Cash price Borrowing Leasing
Total cost £3720.00
Single Payment
Total cost £3951.60
Over 2 years

£164.65/month*

(Setup fees vary)
* Monthly rate will vary
according to interest rates and bank charges

Total cost £4080.00
Over 2 Years £141.67/month

Includes
(Setup fee - £595)
(Title fee** - £85)
** payable at end of
lease agreement


Benefits & Drawbacks

Leasing
• Payment period to match asset use period and is paid out of the income it generates
• Leasing rental 100% deductible against tax and is offset throughout the period and deducted as an operating expense.
• You can use your cash or bank funding for working capital to increase cash flow and profitability
• Easy, accurate budgeting for profit and loss and cash flow
• You may have access to a higher standard of equipment which may be prohibitive if you chose to buy outright.
• You can spread the cost over various periods of time to suit your needs and income.
• It can be more expensive than if you brought the equipment outright
• Your business maybe locked into inflexible agreements which may be difficult to terminate

Borrowing
• You can claim capital allowances against corporation tax although capital allowance restriction means that effectively it may take some years to ultimately offset the allowances
• At present, for small and medium sized businesses, capital purchases (Up to £50,000 total per year) can be fully written off against taxable profits in the first year.
• May restrict further borrowing from bank lines
• There will be an interest cost which may vary with interest rate changes
• Overdrafts can be withdrawn at short notice.

Cash
• You will almost certainly pay less overall than a finance agreement or loan
• Cash flow has a negative impact
• You can claim capital allowances although capital allowance restriction means that effectively it may take up to 10 years to ultimately offset the allowances
• At present, for small and medium sized businesses, capital purchases (Up to £50,000 total per year) can be fully written off against taxable profits in the first year.
• Easy accurate budgeting for cash flow
• The working capital used cannot be employed for other profitable purposes.

contact air compressor company
For further information on leasing compressed air equipment

 

www.airpowered.co.uk
Company Reg. 03965250

air compressor email
VAT Reg. 745 6488 91