Canning Conveyor launch a new Leasing Finance Option for Equipment Purchase
Canning Conveyor has launched a lease option on Conveyor Equipment and Installation, which offers advantages to any prospective purchaser of this equipment.
Canning Conveyor can offer a fixed rental agreement paid quarterly in advance, subject to approval, over 1 to 5-year rental agreement:
Typical Examples:
Example 1
Conveyor System to handle 270tph, comprising:
- 1 -10t hopper/feeder
- 3-750mm x 150m / 250m / 300m ground conveyors each with SuperDrive™ jib heads, loops, bays, tail units, trip wires
- Cannoflex belting
- Delivery & Installation
3-Year Fixed Rental Price: £2,500/week - £0.23/tonne
5-Year Fixed Rental Price: £1,600/week - £0.15/tonne
Figures are based on 8hr/day, 5 days/week = 10,800 tonnes/week
Example 2
A single conveyor to handle 550tph, comprising:
- 1000mm x400m with 55kW SuperDrive™ jib head, loop, bays, tail, trip wires
- Cannoflex belting
- Delivery & Installation
3-Year Fixed Rental Price: £1,100/week - £0.05/tonne
Figures are based on 8hr/day, 5 days/week = 22,000 tonnes/week
Leasing Benefits Summary
- Highly tax efficient - details on request
- It preserves working capital
- It is a fixed cost
- Immediate payback
- Easy to upgrade/add on at a later date, if required
- Another line of credit
- On expiry of the lease and on receipt of all payment due you have the option to purchase the equipment for a nominal fee
- On expiry of the lease and on receipt of all payment due you have the option to purchase the equipment for a nominal fee
Leasing Benefits Explained
With 90% of FTSE 100 Companies now using leasing, which perhaps it is not surprising, that over 30% of all capital equipment purchased in the UK is now leased. Leasing is highly tax efficient as under any agreement the total amount of all rentals payable in each tax year can be fully offset against corporation tax, over the life of the agreement.
Only leasing enables you to write-off the full purchase price, against tax, linked to the expected useful working life of the equipment - which may be as short as three years, for ‘high tech’ products.
Free Up Cash
In the present economic climate maintaining liquidity, is critical to the health of any business and is fully supported by the practise of leasing, which eliminates the need to ‘tie up’ valuable cash resources in a rapidly depreciating asset. This will allow capital to be better invested, elsewhere in your business. Leasing also allows you to treat the acquisition of new equipment as revenue expenditure, rather than a capital expenditure.
Fixed Costs
Additionally, unlike many other forms of finance, where interest rates fluctuate, leasing rentals are fixed for the duration of the agreement. This allows you to budget in complete confidence with the knowledge that costs will not escalate.
Immediate Payback
Canning Leasing Finance will also accelerate the return on your investment, as each and every asset acquired for your business demands a payback. Deferring the rate of acquisition costs by leasing new equipment can provide you with an immediate return on your investment.
Easy Upgrade / Add On
The valuable working life of many business assets can also be hard to predict. Given the pace of technological advancements, any finance arrangement must be flexible enough to accommodate these developments. Our leasing arrangements will allow you to upgrade your equipment within the original term, providing you with the flexibility to accommodate your changing business needs.
Another Line of Credit
All Canning Conveyor leasing facilities are dedicated to the equipment concerned and no other form of security is normally required. These leasing facilities will not affect current borrowing capabilities, leaving your existing sources of finance, conveniently undisturbed.
For more information on Canning Lease Finance, and quotations for conveyor installations please contact Canning Conveyor on 01909 486166.