The CPU supplier info pack is an all-in-one way to organise and protect your lease rental agreement.
Lease
Rental Plan
A Lease Rental
Agreement is a legally binding contract which enables the customer to
pay for the use of an item of equipment rather than its ownership. The
agreement will be for a pre-determined period of time and will normally
be underwritten on a 2, 3, 4 or 5 year basis. There will be situations
where the customer has a requirement to lease equipment on terms other
than those indicated. CPU Group Ltd will be pleased to discuss with you
your customer's individual requirements. During the period of the agreement,
the customer will pay to CPU Group Ltd or any other lessor regular monthly,
quarterly, half-yearly or yearly payments to which VAT will be added at
the rate prevailing at the time of payment collection. A series of variable
advance payment options are available to reduce the customer's rental
payment. The Consumer Credit Act of 1974 governs the type of documentation
applicable to Lease Rental Agreements. There are two types of standard
Lease Rental Agreement - Non-Regulated and Regulated (by the Consumer
Credit Act).
To be used where the total of the rental payments (including VAT) is £25,001.00 or more, or the customer is a corporate body (ie. limited company, local authority, registered charity, trade union).
Regulated Agreements
To be used where the customer does not meet the above criteria.
Benefits of leasing to the customer
No Deposit - No Capital Outlay Most lease facilities provide for immediate use of the equipment without capital outlay. Valuable capital is left intact for more productive use within the customer's business.
Tax Benefits
The Lease Rental payments made are allowable IN FULL as a tax deductible business expense. This provides an extremely tax efficient means of acquiring equipment.
Upgrades
The Lease Agreement can be upgraded at any time during the Hire Period. This provides the option of keeping pace with technology and/or replacing the equipment as needs change.
Flexibility
A variety of products, terms and payment options are available to cater for individual financial needs profiles.
Improved Cash Flow
With rental payments fixed for the duration of the lease term future expenditure can be effectively monitored. Fixed rentals means easier budgeting and improved cashflow.
Existing Credit Lines Remain Intact
Lease rental payments are a monthly or quarterly expenditure item, and as such will have little effect on any existing facilities the customer has with his bank or other financial institution.
Inflation Proof Rentals
The equipment is being acquired at today's prices with tomorrow's money. In real terms the value of the rental will diminish as inflation takes its toll.
Benefits of leasing to the supplier
Improved Cashflow Payment of the supplier's invoice is in most cases made within 24 hours of receipt, subject to all the correct paperwork having been supplied to us.
Higher Order Values
Leasing provides your sales personnel with the means to reduce the levels of discount often required by the customer to secure a sale. Less discount increases the value of the order and as a result the profitability of the deal.
Reduces Bad Debt
Once your invoice has been paid the lessor assumes the entire risk of the debt. There is no recourse against your Company in the event that the customer ceases to make his rental payment under the lease Agreement. Leasing can substantially reduce the amount of time and money spent on credit control.
Repeat Business
The customer who rents equipment is more likely to consider an early change. Because leased equipment can be easily upgraded at any time during the period of hire, the opportunity exists to generate significant repeat business from your existing customer base. Benefits of leasing to the salesperson Easier Close Leasing is a concept sale - the concept is that it's easier for the customer to pay a regular low value rental as opposed to a one-off purchase price. No Discounting The customer is much less likely to ask for discount on a low value rental. He will almost certainly press for discount on the purchase price. NO discount means MORE PROFIT, higher order value and HIGHER REWARDS.
Repeat Business
You can generate sales through the simple process of upgrading. The customer is more likely to replace equipment he rents, than the equipment he owns. Sell Up-Market The difference in rental costs between lower value and higher value products can often be well within the customer's reach. Quoting lease prices can result in purchasing higher value product.
Overcome Budget Restrictions
A lease provides for the acquisition of new equipment as needs dictate rather than when capital budget allows.
Flexibility
CPU Group Ltd provide a variety of terms and payment options that can be tailored to suit the individual financial needs of the customer.
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