We are experts in office furniture finance and office furniture leasing.
Case Study: Office Furniture Finance for Dorset based firm of Solicitors.
We were approached to assist a firm of solicitors who were planning to move to new premises, and as part of the move, they were looking for help in arranging office furniture finance, or perhaps office furniture leasing.
The budget was about £25,000+VAT, and the firm had already engaged with two suppliers who were going to provide a mix of chairs, desks and workstations, a new boardroom suite comprising of a boardroom table and 10 chairs. The reception area was being furnished with a new reception desk. In addition, the firm wanted 15 electric radiators financing, but had already paid for these from their own cash flow.
Our advice was to consider financing the office furniture using a business hire purchase facility, as this gave the business a 100% 1st year writing down allowance, which would culminate in tax benefits of around £5,000 by way of a reduced corporation tax liability for the forthcoming financial period. In this situation, office furniture leasing offered no advantages over office furniture hire purchase.
Office Furniture Finance Process
The process we undertook for the client was very straightforward;
- We arranged for a £25,000 credit line to be sanctioned, the client made available to us some basic accounting information as part of this process.
- The two suppliers were then requested to raise their invoice to the finance house, we assisted each supplier in this process.
- The client signed an HP agreement, then raised an invoice the finance company in order to be reimbursed for the radiators they had previously purchased.
- The finance house paid the suppliers, and reimbursed the client under one hire purchase document.
- The furniture was delivered, the client then signed an acceptance letter, and the funds were released to the suppliers within 24 hours of the furniture being installed
Office Furniture Finance Benefits
The benefits to the client from the office furniture finance facility included keeping their cash intact, ensuring that they received the 1st year allowance; which technically reduced the cost of the investment to them from £25k to £20k (The tax allowances due to them from the taxman amounted to £5,000).
Our main client base covers our local business centres of Bournemouth, Poole & Dorchester in Dorset; Yeovil & Somerset; Salisbury & Wiltshire; and Portsmouth & Southampton in Hampshire, but we are happy to offer Office Furniture Finance & Leasing to businesses throughout the UK.
Contact us today for a free quote.