The second part of our Brexit blog series is looking at alternative ways of taking office space that help companies spread the cost of taking on a new project. Leasing your office fit-out provides a simple, hassle-free way to finance your project that allows you to spread the cost of your office instead of paying up front. We expect to see an increase in office fit-out leasing projects as companies reconsider how they finance their office refurbishment or relocation.
When it comes to leasing office fit-out, you are essentially leasing all of the integral parts you need for your office space. It is mainly used for items such as furniture, storage cabling and air conditioning. However, the lease doesn’t limit you to just these items, you can also lease items such as computer hardware, AV equipment and communications equipment. Whether you need the final touches like desks and seating or the important services to make your office operational, office leasing offers you a lot of flexibility.
One of the main benefits of office fit-out leasing is that it provides companies with a secure, financially robust way of growing their business. Understandably, the uncertainty caused by Brexit may prevent companies from making large investments in office space, but if your business is expanding and you need to make changes, here are three reasons office leasing is a reliable route you can explore with your company.
As a business, when you lease an office fit-out, you are eligible for significant tax benefits. All payments you make towards your office are tax deductible whereas payments with cash are not. By choosing to lease your office rather than pay for it outright, your business can access these tax benefits which would not normally be available to you. If you need to monitor your budget, tax deductible payments can help to save some extra funds. It is also possible spread certain VAT costs into instalments rather than paying for it in one lump sum.
Improve cash flow
At a time where finance and capital is at risk, having to invest large amounts of money into your office limits your ability to use your money elsewhere, such as hiring new staff. By choosing to lease your office fit-out, you can make your capital work harder and smarter. Instead of investing your cash into depreciating assets, invest it to gain higher returns or use it to free up your cash flow. This will allow you to make investments based on what your business needs to succeed rather than having to sacrifice important decisions and missing out on opportunities.
Leasing provides you with more flexibility than you think and businesses shouldn’t be put off in the fear of being tied down and left in a difficult position. Office fit-out leasing is a completely flexible solution that gives you control to determine the details of your repayments. Whether you need to spread out your payments or extend the term of the lease, leased offices are designed to support the needs of the business. Being able to arrange your own fixed payments makes it easy to budget.
There are many benefits to leasing your next office interior project which is why Peldon Rose has partnered with independent specialists who can help. We highlight some of the main benefits behind office leasing and how you can use leasing as an alternative to cash or a bank facility. If you are potentially interested in leasing the finance for your new office, please talk to your Peldon Rose project team.
If you are looking to optimise your workplace without relocating your office, learn how workplace consultancy can save you money in your existing office here.
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