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Offer for our clients

Operating lease – up to £250k

With only a minor individual contribution, we offer you an operating lease.

You can pay back the instalments from the profit generated by your commercial activity.

Please write to us, and learn about the details.

BGK loans – up to £125k Pound Operating lease – up to £250k

Would you like to work with a market leader, but you do not have the funds to buy the right equipment?

One of the best solutions for you will be to get an interest-free loan. The offer of the (BGK Bank) is just the one for you. The loan is intended for small and medium-sized businesses. You will just have to go through a simplified procedure that enables you to get up to £125k with a minimum of formalities, and with a BGK guarantee. Please write to us, or call our consultants, who will give you all the information you need.

Grant for the creation of a new job – up to £17k

For entrepreneurs who have been conducting their business activity for at least six months, it is possible to receive extra funding for the creation of new jobs from state job centers. This could be up to £17k. Please contact us, and we will help you get it!

Grant for starting a new business – up to £8k

Subsidies of up to £8k are offered by state job centers for starting a business. The funds will allow you to break into the market with ease! Please contact us!

Lease buyout – starting from £1

Have you only just started your experience with the business?

Or, maybe you will be setting up shop soon, and you do not meet the requirements of leasing companies… Please contact us

In our offer, you will find a long-term rental option with a buyout scheme starting for £1. We will help you with all formalities.

Local Action Group (LAG) grants – get the funds for your business! – up to £250k

Do you want to start your own business with us, but you need financial support? Our consultants will help you to get a grant that will allow you to start or develop your business.

Go to the grant application form

What is a finance lease?

Finance Lease is a credit agreement most usually chosen by business customers including limited companies, partnerships, and sole traders. Essentially, Finance Leasing enables the business to acquire the assets needed to maintain a business, without needing to buy the asset outright.

How the tax advantages of leasing works - in numbers

01

You lease a machine that costs £5,000 + VAT, over a 3 year term.

02

The monthly payments would be £176.75 + VAT or £40.79 per week over 36 months.

03

Total paid over the term of the lease £6,363.

04

19% tax can be reclaimed on the total lease payments over the 3 years, so a total of £1,208.97.

05

Therefore the net cost of the lease is: £6,363 - £1,208.97 = £5,154.03

The tax benefits of leasing explained

Lease rental is 100% tax deductible

The main reason that the majority of companies lease rather than purchase equipment is that they use leasing as a method of reducing their tax bills. This is because lease rental is 100% tax deductible, and all payments made for the equipment are written off against the company s tax bill. For any profit-making business, this means a substantial saving in the real cost of acquiring equipment by lease rental. This could mean a saving of between 20-40% of the lease payments, depending on the rate of tax you pay*.

Payments on qualifying leases are written off as direct operating expenses, rather than a debt or outstanding liability, thus reducing short term taxable income.

Any capital allowances are passed on to you, and lease payments can be offset against taxable profits. VAT can also be reclaimed on monthly payments. This status as a lease as opposed to a liability on a company s balance sheet is something the banks like to see, which is why an operating lease can be attractive. For this reason, leasing is often referred to as off balance sheet’ financing – a tremendous advantage to both large and small businesses.

Things to be mindful of

Non-payment could negatively affect the credit rating of the business and the guarantor and could result in the asset being re-possessed.

Ownership at the end of the lease

Lease rental is just that, a rental or hire agreement. Title of the goods remains with the Lessor (either Kennet or assigned to one of our panel of lenders) which means the equipment does not show on the company s balance sheet, therefore not needing to be depreciated over a fixed period.

If Kennet broker the funding, they are the third party involved within the lease agreements. In effect, Kennet buys the equipment and will relinquish title for one further monthly payment, we will then have no further financial interest in the equipment. This means that the customer can take full advantage of all the benefits of leasing.

Other benefits of leasing

• Finance Leases offer flexibility in terms of length of agreement, rental repayment profile and end of lease options.
• Unlike making an outright purchase, you will retain cash within your business.
• Effective financial planning. The lease repayment profile gives you confidence in being able to budget for the lifetime of the asset.

Tax advantages
Using the latest assets will ensure you remain competitive by keeping your costs low.

Fast turnaround times
Potential to carry on using the asset at the end of the lease period for a nominal payment, or you can look to upgrade the equipment with another lease.

Support for the creation/development of new businesses

Financing form

Quote Date

Lease Term

2 Years

Weekly Equivalent

£116.64

First Payment

£505.45

23 Monthly Payments

£505.45

Total Cost

£12,130.73

Tax Relief @ 19%

£2304.84

Net cost of Finance

£9825.89

Lease Term

2 Years

Weekly Equivalent

£116.64

First Payment

£505.45

23 Monthly Payments

£505.45

Total Cost

£12,130.73

Tax Relief @ 19%

£2409.89

Net cost of Finance

£10273.76

Business finance

Are you an established or new start up business looking to purchase some professional cleaning equipment? Maybe you’re thinking of changing your current cleaning equipment to an Eco-Friendly solution, and are looking to make it more affordable? Fortador work alongside Kennet Equipment Leasing, who can assist with both Lease and Hire Purchase options to suit your requirements.

Calculate yours

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