Care Home Furniture Leasing FAQs
What is leasing?
Leasing is a smart method of finance that allows you to “rent” your project and offset the payments against taxable profit. You can pay over 3 or 5 years to suit your budget and the lease on your care home.
A lease agreement is a contract between you and the finance company. You make regular payments, usually by direct debit until the end of the lease period. The rental charge is fixed throughout the term of the contract and does not have a depreciating value.
Who can lease?
Anyone who runs a business can lease. Leasing through Dayex® is specifically geared up towards care homes where information provided is presented in both monthly and weekly totals, for easy financial planning and ROI projections.
Why should I use leasing?
Leasing is a cost effective alternative to capital expenditure. This is particularly important to the care home industry as capital availability is directly linked to the rental of rooms by residents. Should your care home be unable to fill rooms due to the quality of furniture or style in an environment that is ever demanding, capital for much needed refurbishment is very difficult to obtain. Leasing is a fast, easy and reliable way to increase room occupancy by improving the visual aesthetics of your home, improving the quality of the furniture and meeting your residents and their families need to have an inviting environment. We’ve given an example of how leasing has been used to improve a care home, here.
What happens at the end of the lease?
The essence of a lease rental agreement is that you don’t own the assets and as such rentals are 100% tax deductible. At the end of the term there are two options – a minimal payment allows the lease to end and ownership of the assets is transferred to you, OR, in an industry where the residents and their needs are constantly changing, you can continue upon the same lease agreement. furniture will be collected by Dayex® and replaced with new furniture again uplifting the home and showing your residents and their families continued investment in their welfare.
What are the benefits of leasing?
The key benefits of leasing are outlined below:
-100% tax allowable – lease rentals are 100% tax allowable, which means they can be set against company profit. This makes leasing the most tax efficient method of financing your care home refurbishment project and often works out cheaper than releasing capital and paying cash.
-Fixed payments for accurate budgeting and forecasting. - Unlike any other method of finance such as a bank loan, lease payments are fixed for the payment period allowing you to both budget effectively and offset monthly payments by weekly rental charges.
- Preserve borrowing power – leasing allows you to preserve your existing bank credit lines without compromising future working capital.
-Overcome budget limitations. – By spreading the cost over 3 or 5 years, you can procure the furniture and refurbishments you need now to improve rather than being restricted by your current budget.
- Ease cash flow – our finance solutions requires no deposit having zero impact on cash flow.
How much can I lease?
Due to the nature of the care home market Dayex® provides leasing solutions for projects of all sizes. The minimum amount for a lease is £5000 excluding VAT and there is no maximum.
Do my payments change over the lease peiod?
No, your payments are fixed throughout the term of the lease period irrespective on interest rates and inflation changes.
Do I need to pay a deposit?
No. Generally we will endeavour to get finance approved without the need for any deposit.
How long does the process take?
Once the total furniture costs have been agreed finance is often approved in as little as 24 hours. Dayex® will keep in contact over the process and update you with any information as and when it comes in.
Can I view details of what payments are likely to be?
Yes, we’ve developed an online finance calculator that provides details both in a monthly and weekly format. Click here to find out more.
I’m interested, how can I get in touch?
We’d be delighted to discuss your refurbishment project. Please contact our office on 01722 341 552
or drop us an email, [email protected]