The Benefits of Leasing your New CCTV System
Leasing equipment has become the norm for many companies, and security equipment is no exception. It’s often a more favorable option due to the benefits it offers such as tax efficiency, effective budgeting and improvements to cash flow. In fact, Around 50% of current CCTV security installations in the UK are financed through leasing.
We understand that many people want the flexibility that leasing offers. While some people still choose to purchase their security equipment outright, many others choose our cost-effective leasing system to protect their home or business. Our lease-to-own options for CCTV equipment allow businesses to pay for the equipment over time while still owning it at the end of the lease term, all for one low monthly payment.
Why Choose Leasing?
Tax Deductible
All of the payments made under a lease agreement are treated as an operating cost and are therefore completely tax deductible.
Fixed Payments
We only offer fixed-interest leases, so your payments remain constant regardless of what happens to bank base rates.
Low upfront costs
Unlike traditional purchase options, by leasing your equipment you are only required to pay a small amount upfront to get started.
Alternative funding
With leasing, you can protect your other lines of credit, such as loans and overdraft facilities to conserve any available capital.
Leasing Vs Outright Purchase or Bank Loan
Leasing CCTV equipment offers several benefits over purchasing outright. First, the procurement process is often easier, and approval for leasing equipment is typically less cumbersome than for a high-cost capital purchase. Additionally, while you’re still under contract, you won’t have to worry about equipment installation, alarm monitoring, maintenance, and technical support – we take care of that for you. Finally, leasing allows you to obtain the equipment you need without a large initial investment and can provide tax benefits, as demonstrated below.
Example figures:-
Outright purchase: £5,000
Lease: £26.76 + VAT per week (Paid by monthly direct debits of £115.98)
60 payments (over 5 years): £6,958.56
Maximum tax relief* (40%): £2,783.42
Cost after tax relief: £4,175.14
A SAVING OF £824.86 AGAINST THE CASH PURCHASE PRICE
As you can see from the example above, leasing can have considerable advantages for profitable companies. The tax relief can actually reduce your overall cost and you don’t have to dig into your liquid cash flow when purchasing new equipment
*Amount of tax relief depends on your tax band (22% / 40%).
What happens at the End of the Lease
During the lease period (normally 3-5 years) you can get tax relief since you are renting the equipment. At the end of the lease period, we will sell the ownership of the system to you for one additional monthly payment, which of course is still 100% tax deductible.
Lease or Purchase: What's Best?
Most of our customers prefer leasing as an easy, cost-saving option. It’s perfect for businesses that don’t want to use their available cash flow all at once and instead prefer to spread it out over time.
However if you have the funds available and wish to purchase outright, that is still an option.
