Leasing Furniture To Setup your R2SA Property
If you want your R2SA property to thrive and get top-dollar for it, staging the property is the most important step. Staging is the process of adding decor to your serviced apartment to make it look fabulous for listing photos and attracting guests. If executed smartly, staging can make even the most mundane space feel exuberant and homey.
When it comes to setting up the R2SA property, the main question is whether to buy the furniture or lease it? The advantages of leasing furniture for your SA property business are listed below:
1 No Upfront Expenses
If you need new furniture and wish to preserve cash flow — leasing furniture is your way out. By leasing furniture, there will be no significant upfront costs or cash outlays; payments are broken down into financed monthly lease payments.
2 Flexible Payment Structures
The leasing companies are the experts and will be able to advise you on the most flexible furniture financing options and payment structures. With many financing options available, you’re bound to find a payment plan that suits your company’s cash flow and financial projections. This will free up your existing cash, credit lines, and bank or overdraft facilities for your business’s future growth.
3 Tax Benefits
In addition to improving your company’s cash flow, leasing your new furniture can be highly tax-efficient. How? Your leasing company can provide the specifics, but in a nutshell, lease payments fall under operating expenses and are therefore 100% deductible against pre-tax profits.
4 VAT Payments
Cash is king for a reason, especially for businesses that rely on a healthy cash flow. How does office furniture leasing aid in cash flow and VAT? With lease-financing agreements, VAT is paid as each payment is due, as opposed to all at once with a traditional outright purchase. Therefore, instead of paying the entire VAT upon purchase, it is paid in installments. This breakdown of VAT expenses provides a cash flow advantage to your business.
5 Fixed rental costs
Choosing a lease agreement for your new purchases provides your business with the stability of fixed monthly costs, so there are no unpleasant surprises. In addition, rates will be fixed for the duration of the lease, which can facilitate budgeting and cash flow projections.
As rental costs are fixed, the actual cost of leasing decreases with inflation over time. How? In an inflationary economy, the relative cost of payments decreases as the lease term nears its end.
6 New enterprises
Utilise specialised arrangements for new and startup businesses. Numerous leasing companies are uniquely positioned to offer lease facilities for new enterprises and businesses with poor credit histories. They may also have access to specialised lenders for these enterprises.
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In addition, a furniture lease agreement will enable your startup to achieve a stylish and attractive interior and benefit from the most modern office equipment while conserving capital for other business investments.
