Explore leasing or renting the office fit-out and furniture.
Until recently, the only way to pay for your office relocation fit out was out of cash-flow or traditional finance such as bank loans or overdraft extensions.
Earlier, we identified that between 60 and 70% of the project costs will qualify for capital allowances. However, for taxpayers, the addition of leasing as a purchasing option has meant that the issue of limited capital allowances can be avoided. This is because lease repayments are 100% tax deductible. Consequently, lease finance could generate significant project savings, particularly for companies with a strong balance sheet and for partnerships where the partners are higher rate taxpayers.
As well as enabling you to keep other lines of credit from your bank or finance house intact, leasing means repayment periods can be fixed for a set period of between one and five years and involve easy monthly, quarterly or annual payments.
This is particularly important if you are looking to maximise cash-flow for more productive use within the business.
A lease may also mean that the cost of enhancing your office fit-out or furniture scheme could simply be added to the initial lease as the business develops.
If leasing does not suit your business, it may be that your landlord will finance the work and adjust your rent accordingly. This would also give you the opportunity to defray the costs over a period of time rather than increase traditional borrowings or burden working capital.
Working with an office relocation partner who understands financing and can explore the options and help structure it really does make sense.
Maris Interiors LLP is the UK’s leading specialist in workplace consultancy, workplace optimisation, office design, office refurbishment, office fit-out and office relocation. Maris design and create world class working environments for occupiers throughout the UK and continental Europe. The Maris team of experts has extensive and in-depth knowledge of how good office design and fit-out can substantially improve business performance, save vast amounts of money and help retain and attract key people.
This news article may be reused subject to Maris Interiors LLP being credited and acknowledged as the source