A short guide to leasing
A short guide to leasing: How your business can benefit from access without purchase
What is leasing?
Leasing is similar to hiring – you’ll pay to use someone else’s products for an agreed period of time, without committing to a full purchase. Essentially, it’s a form of borrowing. You’ll pay a fixed amount throughout the duration of your lease, similar to a rental fee, and you won’t own the products you’re leasing at the end of your term.
In terms of business, it’s a popular way to gain access to equipment and facilities essential for everyday operations – lease contracts are available on an array of products, from IT and telecom equipment, to catering and office appliances.
You may think it’s better to purchase equipment outright for your business, but leasing actually delivers unique benefits and advantages – applicable to both small and large operations.
• Upgrade easily. Many leasing options offer upgrades to the latest versions of your desired product throughout your leasing terms, meaning you’re not stuck with outdated purchases.
• Fixed payments. With leasing, you can get access to the products at a fixed recurring price, making budgets and forecasting easier.
• No large upfront costs. Leasing doesn’t require lump sums in advance, allowing you to access products as soon as you need them.
• 100% tax deductible. Payments for leased products are written off against your company’s tax bill, which could reduce your payments by 20%-40% on average.
• Protects existing credit. You won’t need to apply your overdrafts or loans to receive leased products.
• Save capital. If you don’t have the spare capital to make a one-time purchase, leasing means you can still access the products and business solutions you need.
• Avoid depreciation. You can gain access to depreciating goods without making a purchase that will lose value over time.
Leasing security solutions with ADT
At ADT, we offer leasing across a range of our security solutions. Working with experts Shire Leasing PLC, we’re able to offer the latest products such as CCTV, intruder systems, smart security packages, access control and fire detection systems on leased contracts. This allows businesses of all sizes to access the level of security their operations require, without having to purchase the system in full.
When leasing security packages from ADT, you’ll make two monthly payments – a fixed amount to Shire Leasing, and payments directly to ADT for monitoring and maintenance for your system. We offer lease agreements from 3 to 5 years in length, with the opportunity to purchase, upgrade or end your lease at the end of this term.
Acceptance is quick, so you won’t be waiting long for your security system – you’ll often receive a decision within 24 hours from the Shire Leasing team. When you do, we’ll install and calibrate your system as normal – leased systems benefit from the exact same benefits and functions as purchased systems, and there is no difference to ongoing service received, which includes 24/7/365 monitoring and maintenance, 42 second response times (on average) and more.
Smart security technology is evolving fast and choosing to lease the latest equipment and then upgrading in three or five years’ time is a great way to stay on top of the latest industry innovations. A lot can change in that time – not least your own business. Regularly reviewing your security requirements at the end of your lease is a sensible strategy. And just like leasing a car, making improvements is always easier when you’re not tied to a depreciating asset with hefty up-front costs.
Security leasing and COVID-19
The coronavirus pandemic has impacted a large number of business across a multitude of industries. Affecting everything from supply chains to profits, SMEs have taken a large hit – with many having to make changes to core budgets and forecasts. While government support, such as the widely implemented furlough scheme, offers some financial relief, maintaining day-to-day processes can put a strain on resources.
Leasing allows businesses affected by COVID-19 to access the necessary products and services required for their daily operations, without sacrificing capital that they may not currently have. For example, you can protect your offices – particularly if they’re empty and vulnerable – with ADT security at a monthly price, without using profits that could be applied to a separate issue within your business.
Following the publication of the government’s roadmap out of lockdown, many businesses will be thinking about how they can safely reopen. Some may want to change the use of their premises, while all will need to think about ways to adapt to the realities of a post-Covid world. Each of these issues puts security front of mind for business owners. ADT are here to make sure your security is fit for whatever the future holds.
For more information about leasing our products – or for help with any current existing terms or products affected by the coronavirus pandemic – don’t hesitate to get in touch with a member of our team.