End of tax year incentive for cash strapped SME’s

For small business owners who are looking to minimise their tax and enhance cash flow for the new financial year, there is a compelling case for renting, not buying their new technology equipment.


Research by leasing and rental finance specialists Flexirent has revealed that 83% of their business customers believe that renting their technology equipment has put them in a stronger financial position than if they purchased outright.

Keeping up with the latest technology can be costly for small business owners, who depend on up-to-date technology to run their business smoothly and efficiently.

Industry experts PKF Accountants and Business Advisors agree leasing has its advantages.

“Leasing is a good option for small businesses that need to buy equipment but don’t want to outlay the cash upfront, either because they don’t have access to the money or they want to avoid tying capital up in equipment,” says Ben Ziesing, an SME expert from PKF Accountants and Business Advisors.
 
“With a lease you can claim back the GST included within each payment, and also the balance of the regular lease payments as income tax deductions. This can often work out better for small businesses as the monthly cash flow remains constant and predictable, and the equipment can be replaced or upgraded for little or no extra cost,” he added.
 
One in five business customers claim renting their equipment through Flexirent freed up over $3,000 in spare cash to purchase other business needs, with a further 43% stating they estimate a saving of $500- $3,000 through flexirenting.