Every business needs some kind of equipment in order to manage and operate successfully, be it a computer, car or machinery.

The problem with buying equipment is that the costs can be very high, particularly if you need to purchase more than one or two items. Also very large capital expenditure can seriously affect your cash flow management.

Prices for general equipment are often up to several thousand Ghana Cedis, and dedicated machinery can cost tens or even hundreds of thousands of Ghana Cedis.

One solution to the huge cost of buying equipment or vehicles is leasing, used by an increasing number of businesses to help them benefit from essential or new equipment and cars, without having to pay the full costs upfront.

The Advantages of Taking an IFS Lease

(i) No Large Outlay

The biggest advantage of an IFS lease is that the cost is spread over a number of years; there is no need for you to pay the entire amount upfront. This can significantly help maintain your business cash flow. Poor cash flow is the main cause of small business failures, and an IFS lease can help you to keep it under better control.
Our leases can also allow you to use better vehicles or equipment (E.g.: A more efficient / faster / more accurate product) that would be too expensive to buy outright.

(ii) Security

When you lease an equipment or vehicle from IFS, it is still owned by us, meaning that we have better security on your finance. This means you are unlikely to need any further security to be able to start a leasing contract, and therefore you have a much better chance of acceptance than with other forms of finance. In other words, the leased item serves as your collateral for the transaction. (iii) Tax Advantages

Lease rentals are considered as an operating cost, which means that it is often possible to deduct them from taxable profits (as a trading expense).
If your business pays no or minimal taxes, then IFS could claim the capital allowance on your behalf, and lower the leasing costs accordingly.

(iv) Budgeting

As a lease agreement is almost always a fixed contract, it is relatively easy to budget and forecast with. The amount can be worked into your businesses budget much more easily than an irregularly occurring lump sum; allowing you to keep a much better control over current and future cash flow. In the event that you need an equipment or car replacing quickly, you can do so with a relatively minor monthly adjustment to the budget, instead of a lump sum that could seriously damage cash flow.

(v) Maintenance

IFS will allow you to cover the maintenance and repair costs for an extra sum (which is added to the monthly leasing cost). This will increase your monthly payments, but may save you money in the long run; particularly with vehicles and spare parts that may go wrong frequently, and may cause severe disruption to your operations. Cover can be arranged through IFS is or through a separate insurance policy.