With almost 30 years’ experience working with British businesses, we have come across a range of frequently asked questions. Fortunately, we have the answers.
I am a customer seeking an answer
Will I need to pay a deposit?
A nominal amount is required in advance of the lease agreement. This is usually equivalent to a periodic payment and means you can start using the equipment straight away and generating profit from it before the next payment is due. With hire purchase agreements, VAT must also be paid upfront.
Do my payments increase if inflation increases or interest rates rise?
Your payments are fixed and are therefore unaffected by interest rate rises. They would be subject to any changes in VAT.
Are there tax benefits associated with leasing?
Yes, all finance lease rental payments are tax deductible against profits, therefore attract tax relief for the full duration of the lease agreement. Contact your accountant to find out how this can reduce your overall tax bill. In the case of hire purchase, the lessee (you) can claim full capital allowances on the full value of the asset from day one, which can then be used to reduce taxable profits and in turn any resulting corporation tax liability/payment.
How do I make my payments?
We prefer for our customers to use Direct Debit as the method of repayment.
Can I lease software?
Yes, we are able to provide finance to acquire software. Leasing software does not require having to pay a large upfront cost, such as buying the license outright. It also reduces the risk that your business will end up with obsolete software because at the end of the term you could choose to upgrade to the latest software.
I am a supplier seeking an answer
Do I need to be authorised by the Financial Conduct Authority?
In order to do regulated business with Shire Leasing you need to be regulated by the Financial Conduct Authority. Visit the FCA website for more information on this matter.
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Why should I sell on lease?
Selling on lease gives your customers an alternative way to finance your equipment. There are many benefits for you and your customer. Contact your account manager to train your sales team on how to sell on lease.
How can I get rates when I am away from my computer?
Our exclusive Shire iPhone app is a secure leasing proposal system developed specifically for our network of approved suppliers. It allows you to remain in control whilst improving time management and reducing time chasing deals. It is a pocket-sized version of Shire Online that allows you to get rates when you’re on-the-go.