The benefits of financing your investment in water saving solutions
Ecoprod have partnered with Tower Leasing to offer a range of finance options that make acquiring water-saving solutions simple, affordable and tax efficient.
Lease finance provides businesses with the opportunity to acquire business critical equipment, without requiring significant capital investment. Unlike outright purchases, where businesses pay the full order value to the equipment supplier, lease finance involves pre-agreed rental payments made over an agreed period (usually between two to five years) to utilise the equipment.
This approach enables businesses to spread the cost of the equipment over time, allowing them to preserve cash flow and allocate funds for other essential business needs. By choosing to finance your equipment, you will be able to enjoy some fantastic benefits:
- Keep cash flow within the business rather than deploying it upfront.
- Get the equipment you want when you need it, not just when budgets allow.
- Enjoy 100% tax relief on the rentals payable.
- Pay monthly or quarterly payments over a chosen period of time rather than handingover one large lump sum.
- Keep up with the latest technology and trends by upgrading the equipment at anytime throughout the lease period.
- Structure your lease payments to suit your budgetary needs and allowances.
- Protect your existing credit lines by using leasing as an alternative funding facility.
So how does leasing compare to cash purchase?
Lease vs Buy Example
Assumptions
Project Cost: £5,000
Lease Period: 3 Years
Frequency: Monthly
Company’s Tax Rate: 19%
| Year | Capital allowance | Tax relief |
| 1 | 18% of £5,000 = £900.00 | Less 19% = £171.00 |
| 2 | 18% of £4,100 = £738.00 | Less 19% = £140.22 |
| 3 | 18% of £3,362 = £605.00 | Less 19% = £114.95 |
Total tax relief: £426.17
Lease Rental (Company B)
| Year | Capital allowance | Tax relief |
| 1 | 12 rentals of £172.40 | Less 19% = £393.07 |
| 2 | 12 rentals of £172.40 | Less 19% = £393.07 |
| 3 | 12 rentals of £172.40 | Less 19% = £393.07 |
| Total tax relief: £1,179.21 |
*Corporation tax is calculated on a sliding scale from 19% to 25% depending on the company’s profitability. For simplicity, a tax rate of 19% has been used in this example.
Company B has chosen to lease its equipment and has gained an extra £753.04 in tax relief.
A bit about Tower Leasing
Tower Leasing Ltd has been operating in the asset finance industry since 1989. Throughout this time the organisation has built many strong relationships with equipment suppliers and businesses in need of equipment across the UK.
Tower takes care of the entire lease process to ensure suppliers and customers enjoy a simple and quick leasing experience.
Along with strong connections with 20+ financial institutions, Tower has access to its own book funds making clearing customers for finance a simple process.
EcoProd will be working alongside Tower to provide you with an investment solution which will benefit your business greatly.
Talk to us today
If you’re interested in exploring leasing options for your business then just get in touch – we’d be happy to chat about how this might work for you and to give you a tailored quote for your particular project.
