The importance of cash in business simply cannot be ignored however the importance of cash flow is paramount. There is no way around the fact that a strong flow of cash is a fundamental driving force behind a business. Although there is also no way around the fact that at one time or another, all organisations will have to acquire the necessary equipment to accommodate growth within their organisation. This is not all doom and gloom and it does not mean your cash flow must suffer at the hands of vital purchases. Luckily, there is an alternative…leasing. Leasing is a very cost-effective alternative to upsetting a cash flow. It allows relevant goods to be purchased as and when they’re required and gives you freedom from the limitations of budgets.
Many business owners have accepted the belief that purchasing anything and everything for their business is the way to go. Many factors of contemporary society have a profound effect on purchasing for business and perhaps the most significant is rapidly evolving technology. Given the rate of evolution in technology it does not take long for state of the art to become obsolete, this can happen in less than 12 months. Unfortunately, the importance of keeping up to date with necessary business purchases often leaves business owners asking: “Can my cash flow allow this?”
Leasing is a strategic and sensible alternative to using your cash flow as it allows for more freedom and paves the way for improvement within your business. It is a valuable option as it is tax-effective as a result of structured payments, tailored to fit budgets, and allows valuable capital be put to effective use in developing business needs. This makes leasing far more useful than being committed to depreciating and obsolete assets.
Official figures from the Finance Lease Association (FLA) states that in 2011, the UK secured around £52 billion in credit which in turn allowed small to medium enterprise companies procure equipment ranging from office equipment to machinery. This speaks great volumes about what leasing could do for you and also gives insight as to why more organisations use leasing to support their financial requirements.