IT Leasing

Spread the Cost of Your IT Equipment with our Leasing Options

Bluestone LeasingFinance offers an attractive alternative to paying cash. Flexible, cost effective and fully tailored to your requirements, simply put asset finance allows you to spread the cost of your investment more fully over it’s useful life.

Furthermore, from a purely fiscal perspective, the assumption that finance is more expensive than cash is, in the majority of cases, a myth and our illustrations can demonstrate the true cost of both cash and finance against each other.

Matrix IT Computers is delighted to introduce our fully independent finance partner, Bluestone Leasing. As specialists in the Technology industry and already supporting in excess of 3,500 customers like you, Bluestone Leasing have over 12 years experience in providing the right finance solution. With over twenty different banks and finance companies that they represent, they scour the market to secure you the right product at the best rates available.

The Benefits of Leasing

Why should you use leasing?
Take a look at these 5 fundamental reasons:

TickLeasing for any capital purchasing with low, fixed monthly rentals, so you can budget and manage your cash flow, thus more cost efficient.

TickIt is a way of managing obsolescence without writing off large single sums.

TickLeasing allows you to invest you money in other areas where you will get a higher return on capital employed.

TickIt is a route to bridging the gap between what you need and what you can actually afford. It means that you can have tomorrows technology today.

TickRentals are fully allowable against taxable income, similar purchases are not.

These are just a few of the reasons why 8 out of 10accounting firms use leasing and why 85 of the Times Top 100 companies use leasing.
Leasing Versus Cash Purchases

If your organization is looking to finance a capital equipment project then using your hard earned cash can be just what the taxman wanted. He will not let you offset the full amount of the cash you spend against your next corporation tax bill but instead give you allowances piecemeal over the coming years.

Leasing the equipment may appear to cost more, however when leasing you will benefit from 100% allowances against tax, which means you will be pocketing a substantial gain at the taxman's expense and leasing thus becomes cheaper!

You will also benefit from being able to invest the free cash you would have otherwise spent in other areas of the business.

The example below seeks to illustrate the total costs of a cash purchase versus those of a rental option based on a 36-month term. It assumes rentals are paid monthly in advance, by Direct Debit and all costs are based on net present value.

Cash V Lease Illustration

Capital Expenditure / Cash Purchase Option Cost
Total Cost of Project £150,000.00
Cost after writing down Tax benefit £133,175.06

Rental Leasing Option Cost
Total Cost of Project £150,000.00
Rental per Month £4,800.00
Total Payable £172,800.00
Net Cost Rental Stream £112,863.59
Less opportunity cost of renting elsewhere £18,898.38
Therefore Net cost of Leasing £93,965.21

Assumptions the above illustration is based upon:

TickCustomer Corporation tax Rate: 20%
TickCustomer first year writing down allowance: 40%
TickCustomer discount rate: 12%
TickCustomer return on capital employed: 10%

To understand more fully the benefits of finance to you and for more background on Bluestone Leasing, please visit their website by clicking on the link below.
For more information or to arrange a meeting on how leasing can benefit your IT Project - please contact us or call Matrix IT on 01274 588600