The document discusses how payment over time (leasing) can allow customers to implement energy projects more quickly and efficiently by enjoying the benefits of the investment immediately rather than having to wait years to break even. Leasing provides tax advantages where customers can receive 100% tax allowances on payments, and it allows customers to spread costs over monthly payments while retaining liquidity. The benefits of leasing include faster returns, positive cash flow, tax savings, preserving credit lines, flexibility to take on additional projects, and lower approval levels for decisions.

1. Before you
leap into
finance speak
to Clear…

2. How can I implement my energy
projects more quickly AND
efficiently?
Payment Over Time makes sound financial sense.
There are many ways to express this method, some use
the term Leasing, others Lease Rental, Finance Lease, or
Payment Over Time.
They are in fact all the one and same thing! The
main point is that it is the best way to fund your
energy-saving project

3. Why you should use Payment Over
Time - Customer Benefits
1. Customer enjoys a return on their investment
immediately
- You can purchase now, your business enjoying the benefits now.
- The benefits often outweigh the costs of the scheduled repayments,
producing a positive revenue flow.
- With cash, you have to wait often years until the investment reaches
the break-even point. Why wait!

4. -£30,000
-£25,000
-£20,000
-£15,000
-£10,000
-£5,000
£0
£5,000
£10,000
£15,000
1 5 9 13 17 21 25 29 33
Balanceofreturnoninvestment(£)
No. of months following up-front cash purchase
Paying by Cash - return from Investment based on
£28,700 refit costs
= NEGATIVE RETURNS
Break-
even point
– a wait of
over 2
years
Up front cash
expenditure of
£28,700 on
investment
Period of negative return

5. £0.00
£200.00
£400.00
£600.00
£800.00
£1,000.00
£1,200.00
£1,400.00
1 5 9 13 17 21 25 29 33 37
MonthlyCash
positivegains(£)
Monthly repayment schedule
The same project, but Paying Over Time- £1,162 monthly savings, monthly lease
payments of £1,008
Cash Positive Monthly
by £154

6. £0
£2,000
£4,000
£6,000
£8,000
£10,000
£12,000
1 5 9 13 17 21 25 29 33 37
Balanceofincomefrominvestment(£)
No. of Monthly repayments
36 x £154 = £5,544!
Paying through leasing- Cumulative cash positive earnings
Those £154 monthly revenue-positive earnings really do add up!

7. Further Customer Benefits
Tax advantages – commercial customers enjoy 100% tax allowances on
each payment
This is a major reason that companies choose to use leasing instead of a
loan or cash. You can gain typically between 20%-23% back on each lease
payment through the tax allowances. This typically results in the final
total repayment figure of say 36 payments totalling LESS than the original
Capital Cost.
…………..

8. £0.00
£200.00
£400.00
£600.00
£800.00
£1,000.00
£1,200.00
£1,400.00
1 5 9 13 17 21 25 29 33 37
MonthlyCash
positivegains(£)
Monthly repayment schedule
The Tax Allowances give you a fantastic benefit!
E.g. On a £1000 monthly lease payment, if a company pays 23%
corporation tax on its profits, it will receive £230 back in the form
of tax-not-paid. This makes the real value of the lease payment
only £770
Tax relief
Cash positive gains thru savings

9. £0
£2,000
£4,000
£6,000
£8,000
£10,000
£12,000
1 5 9 13 17 21 25 29 33 37
Balanceofincomefrominvestment(£)
No. of Monthly repayments
Tax allowances bring huge benefits!
Hence, the approximately £230 a month tax benefit amounts to £000’s extra revenue
income over the period.
Tax
benefit
Revenue
from savings
benefit

10. Customer Benefits
1. Customer enjoys a return on their investment immediately – they can purchase
now, their business enjoying the benefits now. The benefits sometimes outweigh the costs of
the scheduled repayments, producing a positive cash flow. With cash, they have to wait
often years until the investment reaches the break-even point. Why make them wait!
2. Tax advantages – customer enjoys 100% tax allowances on each payment (Non-sovereign
risk)
3. You pay gradually in instalments – retain liquidity in your organization, so you can gain
interest, or invest in your core business
4. You protect your existing credit lines – a new line of credit is valuable to your business!
5. You can afford to do additional projects, either now or during the lease term, because
you’ve spread your costs
6. Their investment is flexible – you can invest in additional new higher-efficiency/profit
equipment whenever you want and add to the lease as you will be credit-cleared
7. Lower ‘sign-off’ levels to empower you to make decision making at lower
management, speeds up decisions, because it is revenue expenditure, not capital
expenditure

11. Cash V Rentals
Because assets depreciate, and because of the tax benefits
that leasing offers, leasing will always be a more cost
efficient way of acquiring equipment.
Assets won’t depreciate on the customer’s balance sheet
with a lease.
- Would you buy a house if you knew it was going to
devalue?
- How many companies buy their vehicles these days?

12. Get in Touch!
We would be delighted to help you start making savings
now, so please contact us on:
- Tel. 01277 239932
- Chris.barker@clearaf.co.uk