Vending Machine Leasing

When we say we offer the best vending solutions around, we mean it. Our service goes further than finding you the perfect machines and stocking them with all the products your staff want. It even goes further than giving you the best customer service and constantly making sure your machines are meeting your needs.

Whether you’re after Cold Drink Vending, Coffee, Tea and other Hot Drink Vending, Snack Machines or Combo Vending, your solution will be tailor made to give you everything you need and nothing you don’t.

This is why one of the cornerstones of our business is Vending Machine Leasing. Because we know you can’t always justify buying a vending machine. Sometimes it’s more cost-effective to lease one. So at Vending 4 You we provide a variety of vending machine leasing and vending machine finance options to help you get the vending solution you need right away. We provide vending machine leasing to a variety of customers in London, Buckinghamshire, Berkshire and Surrey. Many of them choose these packages for more flexibility over their vending solution and to avoid unnecessary commitment.

So if you know you need a vending machine or coffee machine solution but you’re not sure if your business can manage it, get in touch about our leasing and finance packages. Take a look around our Leasing Section for a full breakdown of the benefits. Or check out the list below for a quick idea of why leasing could be for you:

Our customers can take advantage of the many benefits leasing has to offer which include:

  • Less cash outlay
  • Get past budgetary limitations
  • Avoid obsolescence
  • Flexible payment terms
  • Flexible equipment management
  • Conserve your working capital
  • Preserve your existing funding lines
  • Tax benefits – You can offset each lease payment against pre-tax profit
  • Fast Application Turnaround
  • 100% Financing

The best way to know if vending machine leasing is the right choice for you is to get in touch. Our team are well-versed in all areas of vending machine leasing and vending machine finance. So just give us a call on 0845 838 2112 or 01183 800 525. Alternatively you can request a callback or get in touch via our contact form.

Vending Machine Leasing

Why Lease
Why lease?
Leasing is the most popular method of financing new vending equipment today. Virtually any machine can be leased from a range of the latest vending machines to a single refurbished snack machine to i.e. from £1000 to several hundred thousand pounds.

Should I pay cash or lease a vending machine?
You may be able to afford to buy the equipment outright, but before you make this decision you must consider the following:

1. All leasing payments are rental payments and as such are an allowable business expense, therefore if a business is making profits they reduce the profit by the amount of the rentals you pay each year which in turn reduces your tax bill.

2. Lease payments are normally the same throughout the lease contract. This means that increases in interest rates do not affect you and enables you to budget your cash flow more effectively.

3. Leasing enables you to save your cash for other purchases such as new stock, staff training, advertising, new business opportunities and unexpected happenings.

Do my payments increase if inflation or interest rates rise?
No. Your monthly payment is fixed at the start of the lease and so are unaffected by interest rate rises. This enables you to budget your cash flow more accurately.

As inflation rises, because your payments are fixed the cost of the equipment reduces in real terms.

Is there a tax benefit associated with leasing?
Yes. A business wishing to acquire capital equipment has to seek the most tax efficient way when doing this. All lease payments are treated as an allowable business expense and, therefore, attract tax relief for the full duration of the lease agreement. Your accountant will be able to confirm this.

How do I make my payments!
All payments are mainly made by Direct Debit on the same date each month or quarter. Quarterly invoice payments are available on occasion although an extra charge is made by the banks for this facility.

Should I go to my bank?
Using your bank for all your business funding is not a good practise. If you use all your overdraft facilities you leave yourself in a vulnerable position to react to any unexpected needs of short-term borrowing. Your bank may change the interest rate mid-way through a loan or reduce your overdraft facilities, which can dramatically affect the cash flow of your business. Sometimes banks will limit the amount they will lend you without further security such as taking a charge on your home.

It is not financially prudent to have all you eggs in one basket.

Who leases?
Nearly every market sector large or small benefits from leasing, from new start business to large established companies.

How does a lease work?
A lease agreement is a contract between you the customer and a leasing company. This enables you to use equipment over a period of time on payment of rentals to the leasing company. With a typical lease agreement, you make a series of regular payments (usually on a monthly basis), thus helping cash flow, as opposed to a large capital outlay for the equipment.

Have the best equipment.
You normally only pay a small deposit with a lease agreement, this enables you to choose the best equipment available with only a small initial cash outlay. This enables you to have the best equipment available with the latest technology and start to enjoy the extra profits this generates before your next lease payment is due.

Leasing Benefits
Leasing a vending machine converts a large capital expenditure into small monthly payments. Hence the company has the equipment immediately and keeps their cash reserve available.

Rather than investing the precious cash reserves in depreciating assets, the company can use them to help increase profits.

VENDING MACHINE LEASE RENTAL IS 100% TAX DEDUCTABLE

The main reason that the majority of companies lease rather than purchase equipment is that they use leasing as a method of reducing their tax bills. This is because lease rental is 100% tax deductible, meaning that all payments you make for your equipment are written off against your tax bill. For any profit making business, this means a substantial saving in real cost of acquiring equipment by lease rental. This could save you between 20-40% of your lease payments, depending on the rate of tax you pay.

Payments on qualifying leases are written off as direct operating expenses, rather than a debt or outstanding liability, thus reducing short term taxable income.

Any capital allowances are passed on to you, you can offset your rentals against taxable profits and you can also reclaim the VAT on your monthly payments.

This status as a rental as opposed to a liability on a companies balance sheet is something the banks like to see, which is why an operating lease can be attractive. For this reason, leasing is often referred to as ‘off balance sheet’ financing – a tremendous advantage to both large and small business’s.

OWNERSHIP AT THE END OF THE LEASE
Lease rental is just that, a rental agreement, Title of the goods remains with the Lessor (ie BOSEF), which means the equipment does not show on the companies balance sheet, therefore not needing to be depreciated over a fixed period.

Lease finance – This allows you the customer to take full advantage of all the benefits of leasing but with the option to own the vending machine at the end. (Tax loop-hole)

THE DISADVANTAGE OF BUYING EQUIPMENT OUTRIGHT
The disadvantage to buying equipment out-right, is that the capital invested becomes a depreciating asset. This is an asset who’s value decreases overtime.

The total amount that assets have depreciated by during a reporting period is shown on the cashflow statement, and also makes up part of the expenses shown on the income statement. The amount that assets have depreciated to by the end date is shown on the balance sheet.

The Tax benefits of leasing
Most of our customers use a lease to acquire their machinery. This is a highly tax advantageous means of purchase because every payment receives 100% tax relief.

Example figures

Outright purchase: £5,000

Lease: £26.76 + VAT per week
(Paid by monthly direct debits of £115.98)

60 payments (5 years) £6,958.56

Maximum tax relief 40% £2,783.42

Cost after tax relief £4,175.14

A SAVING OF £824.86 AGAINST THE CASH PURCHASE PRICE
As you can see by the example above the lease can have considerable advantages so long as you are in profit. Amount of tax relief depends on your tax band (22% / 40%).

1. The tax relief can actually reduce your overall cost
2. You don’t have to endanger your liquid cash flow purchasing new equipment when you can invest in stock and increase your profits.

End of Lease

During the lease period (normally 2-5 years) you are renting the system and for that reason you are gaining your 100% tax relief. At the end of the period you either return the equipment or purchase ofor a small administration fee depending whether you choose lease rental or lease finance your vending machine.

*Capital allowances can be claimed against equipment bought outright at a value of 25% of the written down value of the goods, depreciating year on year.


Our friendly staff would be very happy to assist you.

Why not send us a message
enquiries@v4you.co.uk

or give us a call on
0118 3800525