What are the alternatives to leasing?
Challenges for your customers
Cash
Same downsides as cash, plus:
Similar downsides to overdraft except that:
Similar downsides to overdraft except that:
if you can prove you don't need it"
Bob Hope
Challenges for your customers
Cash
- Uses up working capital
- VAT payable up front
- Will generally mean that full cost cannot be allowed against tax
- Why invest in a depreciating asset?
- Higher initial outlay means returns on capital are slower
Same downsides as cash, plus:
- Overdrafts can be withdrawn at any time
- Security will have to be given over all assets
- Personal guarantees from the directors may be required
- The rate of interest can go up
- The liability will appear on your balance sheet
Similar downsides to overdraft except that:
- Rate of interest more likely to be fixed
- Personal guarantees unlikely for HP
- Not repayable on demand
Similar downsides to overdraft except that:
- Set-up costs likely to be higher
- Not repayable on demand
if you can prove you don't need it"
Bob Hope






