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We know that the beauty sector operates on trends and fashions, so leasing is a fantastic option for our customers. Not only will you be able to upgrade your equipment, but you’ll also be able to get it when you want it, not just when budgets allow.
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Leasing advantages
There are tax advantages for the salon, as all payments made under a rental contract reduce the company’s taxable profit by 100% of the charges – thus reducing the net cost of the rental package to the end user.
Leasing can also help salons protect and reserve other credit lines (such as loans and overdrafts), and offers a viable and cost-effective alternative to these financing methods. It also lets you choose the perfect equipment and furnishings for your individual living room, rather than compromising on something that suits your budget. You can keep more of your profits within the company and support future growth.
You become the owner of the furniture when you reach the end of the agreed term. No capital outlay; often no deposit required. Leaves existing borrowing lines intact; a leasing facility preserves liquidity for other, more appropriate uses. By establishing another borrowing line, the customer maintains existing credit lines for working capital. Cash flow forecasting; Rents are set at the beginning of a lease contract, helping to budget expenses and cash flow. Flow forecasting; This enables the customer to accurately calculate the cost associated with the use of the equipment. A lease cannot be withdrawn; a lease is non-cancellable, unlike an overdraft, for example, which is repayable on demand and can be reduced in the event of a credit crunch.
Leasing companies do not review their customers’ financial situation every year, and therefore do not vary the limits or the interest rate applied. Leasing is inflation-proof; equipment can be acquired at current prices and leases can be financed out of future profits. This means that the equipment should easily pay for itself, and that the rental rate will not increase with future interest rate rises. Leasing is fiscally advantageous; rents are generally fully tax-deductible as operating expenses. The customer therefore obtains a better return on investment by using leasing rather than paying cash for the equipment. Leasing is simple; Leasing minimizes administrative costs and simplifies tax and accounting procedures. Asset depreciation becomes the responsibility of the lessor.
Upgrade options; Leasing enables your company to keep pace with changing technology and respond to any industry or competitive pressure. Your original installation may be modified, during or at the end of the lease, or to take account of unforeseen changes. Maintenance costs; Routine maintenance costs or service packages can be included in the rental amount, creating a single payment covering equipment and service.