What is leasing?
A leasing contract (leasing) is a rental contract (or financing solution) which makes it possible to rent equipment (a mobile phone, a new car, a utility vehicle, etc.) by spreading its cost over the duration of the lease. CONTRACT. This contract describes the conditions under which a party agrees to rent a property - in this case, an acoustic cabin belonging to Work With Island. Signing the contract guarantees the lessee the use of the leased property and provides the lessor with a monthly payment during the rental period. At the end of the rental, you have two options: return the acoustic booth or buy it at a price that takes into account the appreciation and what you paid during the rental period.
Leasing with long-term rental formula (LLD)
A leasing with a long-term rental formula (LLD) is for a period of 18 to 60 months. The advantage of this long-term rental formula is that it adapts to your budget by setting you an affordable monthly payment.
Leasing with Rental with Option to Purchase (LOA) formula
LOA or LLD? You can choose to become the owner of the acoustic cabin by taking advantage of a rental offer with an option to buy. The payment of the purchase option occurs one month after the end of the contract. The purchase of the phone box will cost a residual value (1% of the total excluding VAT) which takes into account the depreciation.
Terms of purchase at Work With Island
Example: If you want to subscribe to a rental offer with option to purchase over 36 months, you will have to pay your last installment in the same way as the previous monthly payments. You will then have to pay the purchase option on the 37th month.
To make it more concrete, you will find below a price simulation for the order of an Island SOLO with assembly service and stool:
- 18-month commitment: monthly rent of 274.49 euros excluding tax, or 823.47 euros excluding tax per quarter.
- 24-month commitment: monthly rent 206.63 euros excluding tax, or 619.89 euros excluding tax per quarter.
- 36-month commitment: monthly rent of 138.81 euros excluding tax, or 416.43 euros excluding tax per quarter.
- Option to purchase cabins for 1% of the value, i.e. a total of 44 euros excluding VAT, to be paid in addition to the last payment (at the end of the contract) to become the owner of the acoustic cabin.
Note: The rental amounts above are valid for quarterly payment. In the case of a monthly payment, the rents are increased by 1.5%.
If you do not wish to benefit from the LOA rental formulas at the end of the long-term rental contract, the phone box must be in perfect working and maintenance condition. Note that the wear of the parts must not exceed that of normal use. The restitution will be made, as for it, with the expenses of the lessors. This includes the costs of dismantling, transport and administrative formalities.
Phone box leasing: 4 main advantages of leasing
We often hear that the use of leasing is particularly advantageous. Below are the different reasons why your company should consider the leasing option when purchasing its soundproof booths :
1. Cash flow control
Nothing is more important to the financial health of your business than good cash flow management. When a customer rents a phone booth without making a large down payment, they retain more of their cash.
You can use this cash to make additional purchases or use it for operating expenses. By renting an acoustic booth, title remains with Work With Island, meaning the booth will not appear on your company's balance sheet and therefore does not need to be written off over a period of time. determined.
2. Conservation of your capital resources
There are certainly plenty of deals pulling on your available capital today. With leasing, you will be able to spread your capital more widely and accomplish more activities.
3. Tax benefits
As we have already explained, leasing makes it possible to convert the investment expense into small monthly payments. Your company will therefore immediately have the acoustic cabin and will ensure that its available cash reserve is not exceeded. In addition, leasing is 100% tax deductible and all financing done for the equipment is deducted from the tax bill.
For any for-profit business, this means a substantial saving on the total cost of acquiring the acoustic booth. Payments made under a qualifying lease are amortized as a direct operating expense, rather than as an outstanding debt or obligation, which reduces taxable income in the short term. VAT can also be reclaimed on monthly invoicing. A credit organization will appreciate this status of "lease" as opposed to that of "debt" in the balance sheet of a company. This is why leasing is often referred to as "off-balance sheet" financing - a huge advantage for small and large companies.
4. Simplicity, flexibility and time savings
Leasing is the simplest method of financing fixed assets. No mortgage or collateral is required. Restrictions on long-term borrowing from financial institutions are avoided.
The acoustic cabin can be used immediately without loss of time. Finally, the amount of rent can be adjusted to match the customer's actual cash flow and needs.
Phone box: leasing or cash purchase?
Whether you need to buy phone booths to expand your business space or to operate more efficiently, take the time to consider the impact of each mode of financing: leasing and purchase.
Buy phone boxes if:
- You believe that they will play a vital role in improving the overall productivity of your business and that you will use it constantly.
- You want to have better control of the asset.
Work With Island strives to provide the best offer to its customers by offering the possibility of payment in 4 installments and 100 days of trial .
- Your cash reserve does not allow you to resort to the purchase.
- Not sure how long you will need the cabins.
- You are not sure of the use of the cabins by your employees.
Borrow to buy
By opting for leasing, the cost (application fee, security deposit, first increased rent, initial contribution, insurance) may be higher than that of a conventional loan. A hybrid option consists in financing the phone box by means of a bank loan. You benefit from two advantages: you own the property and you have monthly repayments:
- You preserve your cash flow.
- You can eventually buy cabins that are priced above your liquidity reserves.
Why is it interesting to have phone boxes in your workspaces?
Open-plan or open-plan offices sometimes present distractions that hamper productivity and well-being at work. Our acoustic cabins have been designed to solve problems relating to noise and the confidentiality needs of employees.
Since Covid-19, workspaces have changed. The office of tomorrow must meet the new needs and uses of employees; with the expansion of videoconferencing, your employees need retreat spaces. This is why we suggest that you easily make our acoustic cabins available to your employees.
You can subscribe to one of our phone booth rental offers (18 to 60 months of fixed rent) and choose to receive your bill electronically. The philosophy of Work With Island is simple: identify and exceed the needs of our customers and partners. In every relationship, our goal is to create the best customer experience.