Many businesses will want to keep a tight grip on the purse strings with 2021 in mind but being prudent doesn’t have to mean putting all your exciting plans on hold, especially if your workplace is in desperate need of a refit – perhaps to make it more Covid compliant or if you’re adapting your business to be more robust.
Leasing is a sensible way to finance refurbishment works. Instead of paying for the project in full upon completion - a raid on cash reserves we know many companies would like to avoid - manageable monthly repayments can be agreed over three or five year terms, for example. This helps businesses manage cash-flow, preserve liquidity and free up valuable working capital for revenue-generating activities.
“A refurbishment with the value of approximately £126,000 can cost around £2,862 per month to repay over a 5-year duration,” comments MPL Partner, Harry Simons, “and monthly repayments of just over £900 are achievable on a more modest fit out project with a value in the region of £39,000. These are kinder figures for business owners to work with, instead of a large lump sum.”
MPL Interiors has been helping businesses refurbish using rental agreements for more than six years, thanks to a number of working relationship with finance partners who understand that the most challenging of times can be when companies need to alter their workplace the most.
“The lease firms we work with offer bespoke finance solutions for our clients,” adds Harry, “and our close relationship means our designs can be crafted in line with their figures.” Unlike other methods of finance, such as bank loans and overdrafts, payments with lease rental agreements are fixed for the duration of the lease period, which makes budgeting simpler and eliminates unexpected variations
Clients learning about leasing are also pleased to discover the attached tax perks, as leasing repayments are 100% allowable against taxable profit: “Leasing is the most tax efficient method of financing a furniture and fit out project,” comments Harry. “Additionally, it can offer significant savings for high tax paying organisations.”
At the end of the lease period, clients have two choices: continue to rent the installation for the same monthly amount or negotiate indefinite use of the installation for a small one off charge. We are happy to introduce clients to our lease partners, whose sole focus is on securing attractive funding for businesses looking to revamp and improve their workspace.