Asset Finance-Sale & Leaseback
Manufacturer of Leather Goods in Somerset
Asset Finance-Sale & Leaseback
A well-established company who supplies clients around the world has grown considerably over recent years. This expansion required a brand-new cutting deck for £85,000. The equipment would last for many years and hold its value. Again, Lease Purchase was the attractive option with 100% first year allowances available saving 19% Corporation Tax being a £16150 benefit.
However, like many companies ordering this equipment it comes on long lead times and the supplier in this case was based in Italy with delivery taking 16 weeks. They also required a 30% deposit on order and the balance before delivery! All the Invoicing was in Euros.
We were able to solve this dilemma by offering either a Sale and Leaseback or Drawdown document. In this instance the client opted for the Sale and Leaseback. He made the various payments in Euros and we then drew up a Lease Purchase document in Sterling and reimbursed the client all the funds.
This enabled the client to convert all the payments into one simple agreement over 5 years whilst retaining the 100% first year capital allowances.
I applied for financial help and was provided with extensive information above and beyond what I expected – and excellent professional service
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