How our leasing works
Natural Enhancement works with a finance company that purchases the Cosmedic® equipment and supplies for you, including your training and support. You then ‘rent’ the goods for an agreed fixed period. Providing all the agreed rentals are paid, at the end of the fixed period you can choose to:
- Keep leasing the equipment
- Write off the equipment to your address subject to a nominal fee
- Give the equipment back
Is leasing more expensive than a loan?
No.
A lease is fundamentally different to a loan and it has different features and benefits. Leasing was devised to offer the best method of acquiring assets. As you are renting the equipment and not buying, each payment can potentially be written off in full as a tax deductible expense, comparatively, only a small percentage of each loan payment can be written off.
What is the A.P.R?
There isn’t one. For accounting purposes, it is important to clarify that you are not borrowing money, so there is no A.P.R. to quote. The leasing company simply purchase the equipment for you and you rent the equipment from them. Providing you pay the monthly rentals, the equipment remains in your possession at all times!
What about vat?
VAT is paid on each payment rather than upfront as you would do with a loan, thus reducing the impact to your cash-flow. If you are VAT registered then the VAT element can be reclaimed as you go. If you are not vat registered then at least you can get the benefit of spreading the VAT at no extra cost.
If you become VAT registered at any point throughout the contract term, then you can begin to start reclaiming the VAT and save 17.5% on each rental.
Are there any other ways leasing helps my business?
Yes!
- Flexibility – renting equipment allows you to leave your reserves and borrowing options intact to grow your business or to help you out in emergencies.
- Spreading the cost over the term of the contract - You wouldn't pay a new member of staff 3 years salary up front would you?
- Controlling your budget - payments are fixed, allowing you to plan ahead with no unpleasant surprises.
- Simplicity – setting up a credit line via Natural Enhancement (UK) Ltd is simple with minimal paperwork.
Summary
We can offer you a simple route to developing your career in permanent cosmetics with the added benefit of 100% tax relief on all payments. The goods can remain in your possession at all times.
Call our team of professionals now on 0800 0272 109(UK)
or contact us online to find out more information