Frequently Asked Questions (FAQs)

Our Frequently Asked Questions section answers everything you need to know about leasing

1. What is leasing?

One of our Frequently Asked Questions is about why leasing is a good option for a business. Leasing is a process by which a firm can obtain the use of certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. The lessee is the receiver of the services or the assets under the lease contract and the lessor is the owner of the assets.

2. Why should I lease?

Benefit 1: No major capital outlay
After signing a lease your only immediate expenditure is the administration fee and your first month’s repayment. You’ll enjoy full use of the latest, most cutting-edge equipment, but without having to pay the full upfront cost.

Benefit 2: Tax deductible
All lease payments are classed as an operating cost, which means they’re 100% tax deductible when you come to file your return.

Benefit 3: Fixed repayments
Fixed lease repayments means they’re set in stone, and they will remain constant regardless of any changes to the bank base rate.

3. Do I pay documentation fees? How much do they cost?

Yes you do – they are an industry norm, charged by all of the lease companies that we work with.

The fees vary from £50 + VAT to £125 + VAT per deal and this comes down to the funder used. The average documentation fee is £100 +VAT.

4. Do I need to insure my leased equipment?

Yes – All of the lease companies that we use require our customers to prove that they have the necessary business contents insurance to cover the leased equipment.  During the ordering process we will ask you to send us a copy of your insurance documentation so that we can forward this to your lease company.

With your consent all of the lease companies are able to arrange asset protection cover and this will be added to your monthly direct debits as standard.

5. What is the difference between a Fixed Term Lease (FTL) and Minimum Term Lease (MTL)?

A FTL lasts for a maximum of 36 monthly repayments, whereas a MTL carries on for a minimum of 36 monthly repayments. The amount of time will depend on the funder.

For MTLs, we’ll get in touch to advise that you contact your funder, with your agreement number, and no later than 90 days prior to the 36th monthly repayment, telling them you wish to terminate the lease after this repayment. This way, you’ll guarantee that you only repay the 36 monthly repayments.

6. What are my end of lease options?

You have two choices: simply return the Mac device to us, or pay a oneoff secondary rental to extend the lease forever, allowing you to keep full use of your Mac.

With the second option, this is equal to one month’s rental. Whilst existing legislation doesn’t allow you to obtain Mac ownership directly from us at the beginning of the lease, the one-off payment gives you sole use. If you ever wish to sell the tech during the secondary period, then we’ll simply raise an invoice and refund you the proceeds.

7. Can I get new equipment once my lease has started?

From the moment the Mac device is delivered to the 23rd payment made, we cannot extend the lease to include any new equipment. We therefore recommend that you take out a new lease that runs alongside the original one. Once you’ve made your 24th repayment, you have the option to either do this, or upgrade.

This involves us taking the remaining balance of your original lease and refinancing it over three years. The upgrade figure is calculated by adding this to the cost of your new device. Subsequently, the first lease is settled. We reduce the secondary rental to £1 + VAT as a thank you, and you get to enjoy the full use of the original tech.

8. Do your leases come with warranty?

Yes – every lease has complementary three-years’ parts and labour hardware warranty. You’ll also benefit from 24/7 AppleCare telephone/chat support – direct access to expert Apple technicians who can try to solve any hardware or macOS issues.

Plus, our leases come with temporary loan machines. Should we need to take your Mac away for repair, we’ll provide you with one to use until we return yours. So you don’t have to worry about business downtime. Our loan machines are typically 15” MacBook Pros, or 27 iMacs. 

If you have a question our Frequently Asked Questions section hasn’t covered then please get in touch. We would love to hear from you.

9. What happens if my business suffers financial difficulty?

If your business ever experiences financial trouble, and you think you’ll struggle to pay your monthly direct debit, please contact us for a confidential conversation. Communication is key: by alerting us to any potential inability to pay, we can approach and speak to the funder. They’re incredibly supportive and will determine the right steps forward (like when they provided proactive solutions during COVID-19).

Even if the situation is severe enough that your business faces closure, communication is still crucial. You can work with funders on matters like returning equipment and fulfilling any obligations. 

A common problem is that some feel embarrassed and ignore the situation, not communicating with us or the funders. We strongly advise against this. If you don’t keep up with your payments, the funders will see a series of unpaid direct debits. This will naturally elicit a sterner, less passionate response from them, leading to actions that impact your long-term ability to raise credit for yourself or the business. It’s better to be open and collaborate.

Our relationship with customers is three-sided between our customers, our funders, and ourselves. Every party wants to see your business thrive. So, if you’re facing challenges, we encourage you to talk to us. We can then provide the necessary guidance, and you can work with the funders to survive the tougher times, and bounce back.

Every business has its challenges; you can overcome speed bumps, but not if you ignore the problem. As a Lease Loop customer, we’ll always be there, in good times and bad. By being honest with us, a resolution will be found, and the stress of the situation reduced.