Specialists in the rental and leasing
of Scientific Equipment & Related IT hardware
Your manager
David Augustus

 

+44 (0) 1354 693 311

david_augustus@bios-analytique.com

 

 
LINKS OF INTEREST

 

Operating/Financial Lease 

 

A financial lease or operating lease doesn't transfer the ownership of the equipment to the customer but only the right to use the equipment
This is not the net value of the equipment who is taken into account but the cost of use by putting the cost of the rents in the Profit & loss accounts and not in the balance sheet
The VAT amount is refundable* and payable in relation with the rental cost and not linked to the net equipment value
For Companies making profit, an important down payment is possible allowing them to put in the first fiscal year a big part of the cost in the profit & loss account and thus pay less Company Tax
Leasing doesn't impact the Company financial capacity due to the fact that the yearly rents are placed in the profit & Loss accounts
Intangible assets as warranty extension or additional Services may be included in the Leasing cost

 

 

 

 

 

 

 

 

 

 


 


 

 
 

 

Bank loan, outright purchase

 

A standard investment is financed most of the time by cash or by a bank loan. This solution transfers the entire ownership of the equipment (accounting & legal) to the customer
The Net equipment value (including VAT) will appear at the end of the fiscal year in the Company balance sheet as an asset and the bank loan will appear as a debt
 
Standard investments follow amortization & depreciation regulations that are often longer than a leasing period
 
For a 5 year amortization period, the depreciation  will be 20% of the Net equipment value per year
In the past, it was mandatory to use standard investments to get state or local funding (pharmaceutical companies, startups),  intangible assets were not financed
Such investments impact and decrease the Companies financial capabilities