If your company’s cleaning is performed in-house, rather than by an external contractor, you will need your own equipment to handle the job. Whether that’s a scrubber dryer, industrial floor sweeper, industrial vacuum, or any one of a dozen other cleaning machines, you must decide whether to buy the equipment outright or lease it.
At Sharpe Maintenance, we know a thing or two about industrial cleaning machines, having an extensive range of makes and models available. In this article, we will discuss the benefits of leasing and buying to help you decide which is best for your business.
Leasing
Leasing your commercial cleaning equipment is an excellent option if your business doesn’t have the funds available to buy the machine outright, or you simply prefer to keep cash flow within the business. A cleaning contractor, for example, may have a new contract for which they need a piece of equipment; a lease agreement means they can invest in the right machinery needed to win the contract but spread the payments across the length of the agreement to coincide with income. In this scenario, the equipment basically pays for itself.
By leasing, you have the equipment on site and available when you need it for a regular fixed fee with contracts lasting for between 3-5 years in most cases. With this option, you will never own the equipment (unless you choose a lease-purchase arrangement), however, it is easier to upgrade equipment, should your needs change. Furthermore, you can be confident of having the very latest and up-to-date cleaning machine technology on the market.
Another reason leasing is an attractive option for many businesses is that payments are 100% tax-deductible against profits for the duration of the lease, without depreciation, and vat is only payable on each instalment.
Buying
Some businesses prefer to buy their cleaning equipment outright and own it for a number of years as an asset. You can make a substantial saving by buying outright, rather than leasing an industrial floor scrubber, sweeper or other cleaning machinery, as long as you have the cash available in the business.
Although this means a large one-off payment, you will make cost savings over the life of the machine when buying your cleaning equipment outright. The downside is that it can be harder to upgrade should your needs change and keep up to date with the latest technology. Similarly, whilst fully tax-deductible, the value of the asset will depreciate over time.
Whether you prefer to lease or buy your industrial cleaning equipment, Sharpe Maintenance has the ideal solution for you with competitive prices and all agreements underwritten by experienced reputable lease finance companies. Give the team a call today on 0116 254 6049 to discuss your requirements and to receive your free, no-obligation quote.