Shredder Leasing
If you wish to lease a shredder please email us with the exact make and model of the shredder you require and we will email you the exact costs for the 3 year and 5 year lease options, with an exact breakdown as per the example below.
Whether you want an industrial shredder or just a high security cross shredder for the office it can have quite a significant purchase cost, so we are now offering a shredder hire / leasing option to our customers. This means that instead of parting with a large amount of cash up front, you can lease the paper shredder on a monthly basis.
This has a number of advantages for businesses:
Preserving your capital
- Deferring the purchase cost allows you to preserve your capital, which can be put to more productive uses than paying for office equipment. Leasing your shredders allows you to treat the aquisition as revenue rather than a capital expense.
It's tax efficient
- Under a leasing agreement the total amount of all rentals payable in each Tax year can be 100% off-set against Tax, over the life of the agreement. Leasing allows you to write-off the full purchase price, against Tax. All of the lease payments in each tax year can be 100% offset against tax, for the life of the agreement.
- In practice the tax savings are often nearly enough to negate the interest payments!
Worked example, based on a £1000 office shredder over 5 years:
Cost of Goods: £1,000.00
5 Year lease (1+59) @ £23.40 per month
Total payable = £23.40 x 60 = £1,404.00
You pay £404.00 over 5 years in interest
Lease is 100% tax deductible so assuming tax rate is 25%
£1,404.00 x 25% = £351.00
Therefore, the lease is almost self-financing and the reduction in tax to be paid (£351.00), compares favourably with the interest charge (£404.00)
Plus ... You have had the use of the original £1,000.00 for the last 5 years gaining interest!
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Maintains other lines of credit
- Unlike taking out a loan, there are usually no security required and it should not affect you current borrowing facilities or capability to raise finance for your business activities.
Fixed costs
- Unlike some other forms of finance the interest on the leasing contract is fixed, so you will always know exactly how much the total payment and monthly payments will be from the start.
Easy Upgrade
- Leasing shredders gives you added flexibility, in that you can change it for a newer machine during the term of the lease if your requirements change - often with no increase in your monthly rental.
No scrapping costs
- At the end of the lease the equipment belongs to the leasing company, so it is their responsibility to collect and dispose of it - although you are usually able to purchase the equipment for a minimal cost if you choose to keep it.
Leasing is only available for equipment purchases over £1000 (this could be 1 large shredder or a couple of smaller shredders, or even a shredder and a printer/copier), but it is not suitable for the smaller home shredders.
Whatever your shredding requirements, from a cross cut shredder to a cardboard shredder Crazy Dave's has a large selection of HSM shredders and Fellowes shredders to choose from. For the highest security we would always recomend a cross cut paper shredder (also know as a confetti cut shredder) rather than a less secure strip cut shredder, although we do sell both for maximum choice. Sometimes, for general office use, the speed and sheet capacity is more important than the higher security of a confetti shredder.
Note: The information above is provided to the best of our knowledge, and was current at the time of writing. However, the government is always fiddling with the tax system so if you are making a large purchase and wish to confirm the tax advantages are still current we suggest you check with your accountant prior to purchase.
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