Advanced-Sytems.co.uk offers affordable and flexible financing solutions enabling our customers to finance the complete solution including:

  • Hardware
  • Software
  • Services
  • Support
  • Training

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Why use advanced-sytems.co.uk finance?

  • Rental terms of 1-5 years
  • Competitive rates
  • Low start schemes
  • Deferred payment schemes
  • Masterlease credit lines
  • Specialist education rental plans

Why do corporate customers finance?

  • Budget more effectively
  • More flexibility – repayments can match the cashflow of the busines
  • Software can be upgraded or added to as business requirements chang
  • 100% tax deductible as a business expense
  • payments from a revenue budget, instead of restrictive capital budget
  • avoid software obsolescenc
  • spread the cost of the expenditure over the realistic life of the software

Who can use advanced-sytems.co.uk finance?

  • Public and limited companies
  • Partnerships
  • Sole traders
  • Professionals
  • Universities, colleges and schools
  • Government bodies
  • Charities and churches

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Why Customers Use Systems Rental Options

Avoid Obsolescence

By using our rental facility, you will have an option included in your contract to add, replace or upgrade your equipment with potentially no increase in the rental cost. This provides significantly more options as your company grows or technology changes.

Reduced Impact on Cash

By financing equipment via the rental option, the cost of the equipment is spread over several years removing the need to make a large capital outlay as soon as the equipment is installed. This enables the solution to ‘pay for itself’, and gives you the option to choose a more suitable, higher cost solution with less impact on your cash flow.

In addition, unlike most other forms of payment, rental facilities attract VAT with each repayment as opposed to requiring the VAT to be paid in one lump sum, immediately. This further reduces the initial impact on cash flow.

Rental repayments are classed as a ‘Revenue Expense’

Our rental contracts are worded so that the repayments can be classed as a Revenue Expense (subject to auditor approval). This not only provides a potential acceleration of tax relief, but also removes the need to capitalise the item, and borrowing, on the balance sheet.

Fixed Repayments

Unlike a normal bank facility, the repayments stated on a rental contract are fixed for the duration of the contract. This enables a company to precisely calculate its future budgeted costs.

Additional Credit Facility

The rental agreement falls outside the customers existing lines of credit, leaving these available for other uses.

Finance the whole solution

We can include all intangible elements of a solution in the rental contract, such as software, training and installation. In addition, we can arrange software only finance.

No additional security required

The equipment is the only security needed for a rental contract. Your collateral remains untouched which means you can use your collateral against future expansion or challenges facing your company.

Simple documentation

The rental contracts we provide are simple and easy to understand. A standard contract is just a single page, and can be e-mailed to you to avoid any unnecessary delays.

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Example £10,000 rental agreement:

Rental Overview

Capital Value

£10000.00

Length of Lease :

2 Years

3 Years

4 Years

5 Years

Cost of Equipment (exVAT):

£10000.00

£10000.00

£10000.00

£10000.00

Quarterly payment will be :

£1624.09

£1140.40

£900.36

£757.25

Monthly payments will be :

£537.90

£377.70

£298.20

£250.80

Notes :

1. All repayments are excluding VAT.
2. Quarterly figures are based on 1quarterly rental upon signing.
3. Monthly figures are based on 3 months rental upon signing.
4. For quotes over £50,000 please contact us.
5. This quote is valid for 30 days, subject to status and contract.
6. The above figures are based on standard rental contracts. Unusual payment profiles will affect the rental repayments.

7. All figures quoted are for indicative purposes, assume payment of 3 rentals upon installation, an initial administration charge, credit and documentation approval, and Standard Capital Allowances.

 

Example of Cash Vs. 3 Year Rental

Cash Value

£10000.00

Rental Cost

£13597.20

 

Year 1 (£)

Year 2 (£)

Year 3 (£)

  

CASH

        

Tax Allowances

£4000.00

£1500.00

£1125.00

  

Financial Impact

£840.00

£315.00

£236.25

£1391.25

RENTAL

        

Tax Allowances

£4532.40

£4532.40

£4532.40

£13597.20 (100% allowances)

Financial Impact

£951.80

£951.80

£951.80

£2855.41

 

POINTS TO NOTE : 
* The financial impact is the £ saving against the tax bill given that the client is making profits.
* Assume that the Return on Capital Employed (ROCE) is 8.5% (this is included in the cash option as the alternative to using the funds in the core assets of the business - it represents the opportunity cost of money).
* All figures are plus VAT @ 17.5%.
* Assume the company is making taxable profits (ask about loss makers) and tax is charged at 21%
* Assume the company does not sell the asset at the end of the term.
* Standard capital allowances assumed (non-SME companies).

 

Cash

Rental

Cost

£10000.00

£13597.20

Opportunity cost of money

£2772.89

nil

£ Tax relief

- £1391.25

- £2855.41
 

£11381.64

£10741.79

NET SAVING   £ 639.85

 

All figures quoted are for indicative purposes, assume payment of 3 rentals upon installation, an initial administration charge, credit and documentation approval, and Standard Capital Allowances.

THIS EXAMPLE HAS BEEN UPDATED TO TAKE INTO ACCOUNT THE BUDGET CHANGES IN MARCH 2000

DUE TO THE ASSUMPTIONS MADE, THE CALCULATIONS STATED ABOVE ARE PROVIDED FOR INDICATIVE PURPOSES ONLY.

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