Preserves existing borrowing power
Other lines of credit from your bank or other finance houses remain intact for other credit needs.
Payments come from a revenue budget as opposed to a capital budget
Don’t be restricted by capital budgets. Finance the total fit-out and make use of huge tax advantages.
If you pay for the furniture and refurbishment of your building from your cash flow, only a limited percentage is allowable for tax purposes. Because of the ‘intangible’ elements, the Revenue may only allow you to claim capital allowances against approximately 65% of the project. However, if you lease the works, the repayments are 100% allowable unlike any other form of finance such as a bank loan. This 100% allowance on payments makes leasing the most tax efficient method of refurbishing a building and can WORK OUT CHEAPER THAN PAYING CASH!