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Finance Options

TouchStar recognises that it can take a considerable investment to roll out CCTV or access control. That’s why we recommend cost-benefit calculations are based on the likely anticipated pay back period, which is invariably short. But it can still be useful to have the option of a lease arrangement, which is why we provide one. Leasing is an attractive option for the following reasons:

TAX BENEFITS

All the lease rental repayments can be offset against the taxable profits of your business. 100% tax efficient.

UPGRADE OPTIONS

The lease can be upgraded which allows you to add additional equipment onto the lease. This helps if you want to add on new equipment modules or perhaps new software releases.

REVENUE BUDGET

Companies often have two types of budgets. Capital budgets for capital purchases and revenue budgets for ongoing costs. Leasing the solution falls under the revenue budget, which is often the easier budget to use.

RECESSION PROOF

The repayments will remain consistent and are not linked to base interest rates or the stock market. This means you know where you stand with your repayments and you can budget accordingly.

SIMPLE SOLUTION

The lease rental is deposit free and can be placed within 24hrs (Subject to Status). It is a proven solution for technology based purchases.

3 YEAR RENTAL/LEASE OPTION

Our three year Rental Option has been introduced to give your company a way to start accruing the benefits of your investment while balancing the cost, and giving you freedom to change the solution as your business grows.

So it incorporates an upgrade path, which lets you to add further hardware, software & services during the term of the agreement without necessarily increasing the monthly repayments.

This is achieved by simply extending the terms of the agreement at the time when the new equipment is acquired, to take account of the increased lifespan of the enhanced system.

We’ve provided an example here so you can see how it works in practice:

With regard to the cost opportunity of money that could be gained through the rental option being offered to you, this can be summarized as follows:

Cash

Rental

Example Cost

Cash: £100,000.00

Rental: £124,992.00

Opportunity Cost of Money

Cash: £27,728.91

Rental: £0

£ Tax Relief

Cash: -£13,912.50

Rental: -£26,248.32

NET SAVING:

£15,072.73

POINTS TO NOTE

All figures are quoted for indicative purposes, assuming payment of 3 rentals upon installation, an initial administration charge and credit and documental approval. Capital allowance rules assumed for non-SME companies.