Pataya Financial Management Services

The Benefits of Leasing

Admin101 — Mon, 13 Nov 2023 11:56:08 +0000

There isn’t a week goes by atpataya Management when a prospective customer of a vendor doesn’t ask “what are the actual benefits of leasing?” “Why would I lease rather than just buying the goods I want?”

To that end we thought it was about time we helped by giving a quick, very simple to understand in plain English overview of how the concept of leasing actually works.

The Tax Benefits of Leasing explained

Leasing converts a large capital expenditure into small monthly payments. Hence the company has the profit-making equipment immediately and keeps their cash reserve available rather than investing the precious cash reserves in depreciating assets, the company can use them to help increase profits.

Lease Rental is 100% Tax deductible

The main reason that the majority of companies lease rather than purchase equipment is that they use leasing as a method of reducing their tax bills. This is because a lease rental is 100% tax deductible. All payments made for the equipment are written off against the company’s tax bill for any profit making business. This means a substantial saving in the real cost of acquiring equipment by lease rental. This could mean a saving of between 20-40% of the lease payments (depending on the rate of tax you pay*).

Payments on qualifying leases are written off as direct operating expenses, rather than a debt or outstanding liability, thus reducing short term taxable income.
Capital allowances are passed on to you and the lease payments can be offset against taxable profits.
VAT can also be reclaimed on lease rental payments. The total Vat element is not paid upfront in a traditional purchase sense but rather each instalment is plus Vat.
Off Balance Sheet Financing. This status as a “lease” as opposed to a “liability” on a company’s balance sheet is something the banks like to see which is a tremendous advantage to both large and small businesses.

Ownership at the end of the lease

Lease rental is just that. A rental or hire agreement. Title of the goods remains with the Lessor (eitherpataya Management or assigned to a bank), which means the equipment does not show on the company’s balance sheet, therefore it doesn’t need to be depreciated over a fixed period.

Title to the equipment can be agreed with the seller orpataya Management as a separate agreement so that ownership of the goods after the lease agreement has been terminated can be retained.

The disadvantage of buying equipment outright

The disadvantage of buying equipment out-right, is that the capital invested becomes a depreciating asset. A depreciating asset is an asset that’s value decreases over time.

The total amount that assets have depreciated by during a reporting period is shown on the cash flow statement which also makes up part of the expenses shown on the income statement. The amount that assets have depreciated to by the end date is shown on the balance sheet.

An example how the tax advantages of leasing works as an example in numbers

A business leases a machine that costs £5,000 + VAT, over a 3 year term.
The monthly payments would be £188.25 + VAT over 36 months. No hefty deposit payments. Simple instalments that are not variable but fixed for the agreed lease term.
Total paid over the term of the lease £6,777.00 + VAT
23% tax can be reclaimed on the total lease payments over the 3 years. In this case a total tax saving of £1558.71. (A percentage of 23% will be utilised for this example please speak with your accountant for clarification on the relevant percentage your business would utilise).
Therefore, the net cost of the lease is £6777.00 – £1558.71 reclaimed tax giving a net cost of the goods of £5218.29.
This makes leasing a very attractive option to keep your business up to date with needed equipment whilst helping to spread the cost.
We would like to state this does not constitute financial advice of any kind and we recommend speaking with your accountant for further details and a full overview.

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A Complete Guide to the Recovery Loan Scheme for Business Owners in 2023

Admin101 — Mon, 11 Sep 2023 23:38:14 +0000

In the ever-shifting landscape of small medium enterprise businesses (SMEs), securing the right financial support can truly make a difference, helping shift the odds of success in your favour. With more than a decade of experience in B2B finance, we at Pataya Financial Management Services have been steadfastly supporting small businesses like yours. We understand the hurdles you face, and that’s why we’re here to simplify the Recovery Loan Scheme (RLS) which is a lifeline designed to bolster your business during these challenging times.

Let’s make sense of the Recovery Loan Scheme. How does it work?

The Recovery Loan Scheme is a government-backed initiative that embodies the commitment to fuel the growth and investment aspirations of small and medium-sized UK businesses.

The Recovery Loan Scheme aims to offer essential financial access, empowering businesses to flourish by providing funding for a range of legitimate purposes, whether it’s for working capital or making strategic investments.

Good To Know Key Elements and Eligibility

As your dedicated business finance partner,pataya Management is here to break down the essentials of the Recovery Loan Scheme.

The Business Recovery Loan core features explained in a simple to understand format, which after all is what most business owners want. What is it? How does it work? What does it cost?

Loan Potentials: Pure has an excellent list of accredited lenders. We can secure loans for your business from £25,000 to £2,000,000.
Government Assurance: The government stands behind 70% of the finance extended to your business by the funder. This assurance empowers lenders to provide your business with the necessary funds under the shelter of the scheme enabling them to lend more freely.
Flexible Terms: The Recovery Loan Scheme (RLS) is designed to offer funding with loan terms of 2 years through to 6 years at market competitive rates of interest.
Access to multiple schemes: Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or RLS facility before 30 June 2022 are not prevented from accessing the current Recovery Loan Scheme, but in some instances borrowing under these schemes may reduce the maximum amount the borrower is eligible for if a new Recovery Loan application is made.
Pricing: Interest rates and fees charged by lenders will vary and will depend on the specific lending proposal. The lender’s pricing will take into account the benefit of the Government guarantee;
Eligibility Check: To be eligible for the Recovery Loan Scheme, your business should be actively trading in the UK for at least two years, have a turnover of 45 million or less, and demonstrate viability and non-difficulty.
Excluded Segments: While businesses from a multitude of sectors can apply, some entities such as banks, public sector bodies, and state-funded schools are not eligible for this scheme.
Personal Guarantees: Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.

Applying for a Recovery Loan Viapataya Management

Pataya Financial Management Servicess sole aim is to make applying for a Recovery Loan as simple and fast as possible. Pure is here to help your business navigate the journey from application to funds in your business bank account allowing you to get on with your job of running your business. Our seasoned account managers are devoted to providing you with a seamless experience. Here’s how we can assist:

Swift Decisions: We understand the urgency of your financial needs. Our streamlined process enables us to provide a decision in as little as 1 hour.
Tailored Solutions: With terms spanning from 2 to 6 years and no early settlement fees, our offerings are designed to align precisely with your business goals.
Expert Insight: Our dedicated account managers are here to guide you through the process, ensuring informed decisions that resonate with your business’s unique needs.

Pataya Financial Management Services helping Pioneer a Prosperous Future

Atpataya Management, we are dedicated to your business’s prosperity and aim to provide the best funding options available to you. As the landscape continues to evolve, we’re here as your reliable business finance partner, equipping you with the tools you need not only to adapt but also to thrive.

Reach out to us today, and let’s pave the way for your business’s success through the Recovery Loan Scheme.

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Welcome to our new website!

Admin101 — Tue, 14 Mar 2023 13:56:18 +0000

Welcome topataya Management’s new website!

At Pure we are excited to make this announcement and have been working very hard in the background for some time to make our dream a reality.

Pataya Financial Management Services have been offering customers and vendors finance and leasing solutions for many years as part of a collective but has now reached a level of business that enables Pure to work directly with an expansive bank of funders in its own right.

So what does this mean for you in reality? Quite simply it allows Pure to offer an improved, fast efficient service that is extremely nimble and able to react to the ever changing demands of the current economic climate quickly and efficiently, aligning customers wants and needs with our services.

The combined level of experience at Pure exceeds half a century. We believe we are second to none!

What We Do

We’re excited to unveil our new brand and website and look forward to helping more businesses achieve their financial goals.

Business loans: Whether you’re looking for a short-term loan or a long-term finance solution, we can help you find the best option for your business.
Equipment Leasing & Hire Purchase:We understand the importance of having the right equipment for your business to succeed. Our equipment finance solutions provide funding for a wide range of equipment, including but not limited to machinery of all types, IT hardware or software and vehicles whether that be a forklift truck, a new company car or an HGV.
Invoice finance: If you’re experiencing cash flow issues due to unpaid invoices, our invoice finance solutions can help you access the funds you need to keep your business moving forward.

Our goals

Our goal is to help businesses within the UK and Ireland of all sizes, across all sectors to access the financing they need to grow and achieve their goals. We understand that every business is unique, which is why we work closely with our clients to identify the best finance options to suit their specific needs.

In addition to our finance services, we are also committed to providing our clients with the best possible customer service experience. We pride ourselves on being responsive, transparent, and reliable and we strive to build long-term relationships with our clients based on trust and mutual respect.

Questions?

If you’re interested in learning more about our services or have any questions about borrowing money for your business, please don’t hesitate to get in touch. Our team of experienced professionals is available to answer any questions you may have.

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