Leasing company cars, IT equipment, and even barista machines is common practice for most businesses. It makes financial sense; spreading costs, retaining cash in the business and even mitigating against depreciation and dilapidations costs. However, when it comes to an office fit out or refurbishment many businesses look to cashflow or bank loans to fund office interiors projects.
Paying upfront for an office design and fit out can be a significant drain on resources. It can even stall or delay an interiors project. Although the reasons for funding the project may be very compelling, immediate concerns around cashflow can make it a very difficult decision.
Fortunately you don’t have to rely on a large capital outlay or bank credit lines. Instead you can keep working capital in the business for other revenue-generating activities, and still benefit from an office fit out or refurbishment.
Finance is available for office interiors projects, just as it is for your coffee machine! Costs such as design, service, installation, fixtures and fittings, furniture and technology can all be paid for using lease finance schemes; in fact your barista machine, instant hot water tap and other kitchen / breakout area ‘nice to haves’ could also be included. This means your company can enjoy the benefits of a new office design, while spreading costs and paying for it in an affordable way.
If you’re in the difficult position of making a decision about whether or not to agree to an interiors project, it’s worth exploring this funding avenue. Many of our clients have benefited from lease finance for the following reasons:
- Retain working capital in the business– no big cash outlay means your cashflow and bank credit lines remain intact for other projects
- Spread the cost and no need to compromise on design– instead of paying upfront, costs can be spread over 2-5 years. This means you can fund the best office design solution for your needs now, without being constrained by current budgets
- Reap the benefits straightaway– a new office design can deliver many benefits to a business, including improving employee morale, productivity gains, enhancing brand identity and customer experience, business performance etc. With lease finance you don’t need to wait until sufficient funds are available to benefit from an office interiors project
- Accurate budgeting and forecasting– fixed payments makes budgeting easier and eliminates unexpected variations such as increases in interest rate
- Tax efficient– in some cases it can work out cheaper than cash! Lease finance payments are 100% allowable against taxable profit
Tax benefits are a clear reason for considering lease finance (also known as lease rental) over funding a project from cash reserves. Unlike lease purchase agreements, lease rental is 100% tax deductible. Therefore, depending on the size of the project, monthly rental payments over 3-5 years can actually work out less than the original upfront cost.
However, another important reason that some of our clients have chosen to go down the finance route is because of the impact an office refit or refurbishment can have on the business. Instead of delaying a project until cash reserves allow, they fast tracked their interiors project and have benefited from a more immediate return on investment.
For some it’s the effect of having more prestigious or state-of-the-art offices that has enhanced their brand, attracted new business and facilitated growth. For others it’s the impact on staffing that has improved business performance overall. A new office design can have a dramatic effect on company culture, staff morale, productivity and other ‘HR issues’, which in turn impacts on performance and the bottom line.
Being able to sign off on an office interiors project because funding is readily available has allowed many of our clients to address challenges like these, and push forward with business plans and targets for growth.
CBS Office Interiors have partnered with Plus Finance Ltd, the UK’s leading specialist in finance for business, to give companies more options when financing their office interiors projects. If you are interested in finding out more about leasing for your project, please contact one of our team to explore your requirements and for a quote. We can then introduce you to the team at Plus Finance to see how they can help you, or you can contact them directly on 01494 783773.