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Deciding whether to invest in a new office fit out can be daunting, especially as the average office fit out in the Manchester and Warrington areas can vary in price from around £20 to £60 per sq. ft depending on specification. If you have a large office space your fit-out project could easily surpass the £100,000 mark, but what if your current office space isn’t meeting your current and future needs?
Leasing equipment such as company vehicles, and IT equipment is considered best practice in the world of business, it should therefore come as no surprise that the number of companies opting to spread their office design and fit out projects through lease finance is rapidly growing. Why are companies choosing to lease their office fit out requirements? Let’s take a look!
The entire fit out project can be financed
Lease financing covers not just office furniture but rather the whole fit out project from design to the installation of fixtures and fittings. This means you pay for assets as you use them, with some providers such as Plus Finance offering flexible solutions tailored to match the lease of your office fit out project to the break in your building lease.
Your vision isn’t compromised
One problem with paying cash is that you are restrained by current budgets within your organisation. The best lease finance providers offer flexible payment terms which means your business can borrow the amount needed to finance your office fit out without compromising on quality and specification, ensuring you can achieve the best return on your investment (ROI).
Reap the rewards instantly
If your current worn out office is stifling your revenue generating ability, leasing provides a way of drawing out the benefits of a new office fit out instantly even if your budget is tight. Is your closed plan office hindering your employees’ productivity and negatively affecting morale? Lease financing allows you to design and build these spaces NOW, allowing you to reap the rewards in terms of improved productivity, wellbeing and employee retention!
Lease Financing Payments are tax allowable
Not only is securing a lease quicker than a bank loan, but also offers greater tax benefits. Opting to lease your office fit out offers lucrative tax benefits as payments are 100% allowable against taxable profit meaning lease financing may work out cheaper than paying with cash in some scenarios!
Reduces Impact on Cash Flow
One of the greatest benefits of lease financing is the lack of limitations imposed by your current cash availability. Payments are spread over several years which means you can afford a fit out which meets both current and future needs without compromising on quality due to a lack of cash available at present. No large up-front payments mean cash is retained within the business, maintaining working capital which can be invested into other revenue generating activities.
Fixed Payments make budgeting easy
Just like rent and car leasing, office fit out leasing repayments are fixed and can be budgeted as part of your monthly expenditure. Unlike bank loans, lease financing isn’t vulnerable to variations in interest rates which allows your company to create accurate future budgets.
Closing thoughts
Companies no longer have to wait until they have the cash reserves in order to gain the considerable benefits from an office fit out but rather, they can receive an immediate return on their investment through leasing. The result is an office space which can solve several operational problems such as productivity, morale, retention and can even redefine your company culture now rather than in the future. The ability to maintain working capital whilst creating a space which can win over new clients and attract the best talent ensures that you’ll be well on your way to achieving your business goals without compromising on your vision!
