MWeigh - Finance

Universal Leasing & Finance

Our leasing and finance packages are arranged through Universal Leasing & Finance. They can be contacted as follows:

Universal Leasing & Finance
3 Brookside Cottages
Wolverley, Worcs
DY11 5XA

Tel: 01562 851158   Fax: 01562 851240   Mob: 07885 591913

Lease or Buy

The Benefits of Leasing

Why it makes sense for you to lease
Increasing numbers of businesses are choosing to lease technology because of the benefits it offers.

Saves Working Capital
If businesses buy equipment outright, the capital invested becomes tied up in a depreciating asset, precluding investment in other projects. Leasing, on the other hand, allows you to save resources for other purposes, such as new business opportunities, unexpected needs, business development or marketing.

Easier Budgeting
Your payments are fixed for the full agreement period and are not affected by inflation or changes in interest rates. So you can accurately plan for your finance payments in advance, helping to simplify the budgeting process.

Maintains Credit Lines
With leasing, existing credit lines remain intact. As a result, you can acquire the solution you need and have the additional flexibility to still use your banking facility in the future.

No Deposit
A deposit need not be a prerequisite of the lease.

Tax Efficiency
Lease payments are fully tax allowable at the rate of tax paid, reducing the net cost of leasing the equipment.

Upgrade Potential
Leasing allows you to keep up to date with advancing technology and to respond to changing needs. You can add too or upgrade your original installation to accommodate changes in your requirements.

Payments are simply made by direct debit.

Individual leasing agreements, including contract lengths, are tailored to meet your particular needs, ensuring that the payments match your existing and planned budget.

Who Uses Leasing?

Nearly everyone! Virtually all of the FTSE 100 companies use lease finance to acquire new assets. Over the last 20 years leasing has grown in importance owing to its favourable impact on taxation as well as the value added services that are  available as part of the contract.  For example – Service and maintenance contracts.

Leasing Versus Alternative Funding Options

There are many advantages to leasing compared with other financing alternatives.


  • Outright purchase has an immediate impact on cash flow. This is not the case with leasing.
  • The cash is tied up in the asset and cannot be used elsewhere in the business. Leasing ensures that cash is available to be used to better effect elsewhere in the business.
  • The asset is shown on the balance sheet whereas leasing is off balance sheet.
  • Writing down allowances are claimable at a rate of 25% per year on a reducing basis; lease payments are 100% offset against taxable profits.
  • Outright purchase can reduce your flexibility to upgrade and add to your equipment as you are dependent on future cash reserves. Leasing ensures total flexibility regardless of immediately available cash reserves.


  • Using a loan will use up part of your available credit and impact on your ability to obtain or increase any overdraft or current loan to fund working capital in the future.
  • The asset is shown on balance sheet whereas the lease is off balance sheet.
  • The lender may ask for additional security e.g. – charge over freehold property. A lease is secured on the asset in question.
  • Loans may be repayable on demand, whereas the leasing company cannot “foreclose on the transaction whilst payments continue to be made.
  • Only the interest element on loans and writing down allowances are claimable against tax – 100% of leasing payments are offset against taxable profits.


  • An overdraft is a short term facility to fund working capital, not asset acquisition, and is therefore less appropriate for buying equipment.
  • As with a loan, an overdraft will use up part of your available credit and may impact on your ability to obtain or increase your overdraft to fund working capital in the future.
  • Interest is normally variable and calculated daily – lease payments are fixed and allow for easier budgeting.
  • Just as with a loan, repayment on an overdraft is on demand. Lessors will not foreclose on the on the arrangement if the repayments continue.
  • The asset is shown on balance sheet – lease is off balance sheet.