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We have been using Snowbird Finance for just under a year now and wish we had started using them sooner. The online application process which we can do with our patients in practice is so easy and straight forward to use.
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Lease purchase (also known as Hire Purchase) offers taxation and ownership benefits for Dental professionals purchasing new practice equipment, allowing you to own the equipment outright once all the payments have been made (subject to a nominal title transfer fee). This also means that the equipment will show on the balance sheet as a fixed asset.
This is a popular option for managing cashflow, particularly for newly established or expanding dental practices, as there is no significant outlay, leaving you to save working capital for other projects.
Lease purchase schemes are usually for periods of up to 5 years with monthly fixed payments. It is possible to finance most of the equipment in your practice, such as X-ray machines, sterilisation devices, IT systems and even cabinetry.
The main tax benefit of this type of finance solution is that your purchase would qualify for the Annual Investment Allowance (AIA), which offers tax relief at 100% on qualifying expenditure in the first year of purchase and on the interest payments over the term of the agreement. The maximum you can deduct from your taxable profits was increased to £500,000 in the 2014 Budget, until 31 December 2015.*
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*You have sole responsibility for the management of your tax and legal affairs. We recommend that you obtain your own independent tax and legal advice tailored to your individual circumstances. Snowbird Finance does not provide tax or legal advice.