What is Outright Purchase?

• This is when a customer purchases their EPOS system and pay in full up front to own the system as an asset of their business.
• If you own the EPOS system you can then operate the hardware and software for as long as the solution is operational and functioning.
• Potentially, you could change the software you use on your hardware.
• The tax treatment for Purchase is different to Lease Hire. We recommend you seek advice from your accountant as to which method is best suited to your business for tax including credit position.

What is Lease Hire & Lease Rental?

This is when a customer wishes to rent or hire the EPOS solution for a period of years. As an alternative to outright purchase, you can Lease Hire your EPOS hardware and software solution. The benefits are:

• Retain cash in your business (working capital/cash flow).
• Spread the payments for the EPOS solution via fixed monthly direct debit rentals. Also helps with monthly budgeting, costs and profit management.
• Tax advantages; as hiring can be 100% offset against the profits of your business, where outright purchase you can’t. This means to can charge the Lease Hire to your P&L (profit and loss account) as a cost to the business on a monthly basis, potentially reducing your corporation tax (limited company) or income tax (sole trader). Another benefit of Lease Hiring is at the end you could upgrade your EPOS system to the latest version available at that time, which is easier to do if you are Lease Hiring, because you send back the old system for a new one.
• Lease Hire is available to Sole Traders and Limited companies subject to the normal credit acceptance/clearance requirements.
• Typically this would be for 3 years and paid monthly via direct debit. The benefits are that you spread the cost along with tax advantages. Another benefit of Lease Hiring is at the end of the agreement you could upgrade your EPOS system to the latest version available at that time, which is easier to do if you are Lease Hiring, because you send back the old system for a new one. Please note, the customer has to fulfil standard credit acceptance/clearance criteria for this option to be available.
• Full details on request. sales@pandaepos.com, 01452 332211 or 0800 368 8787

Financial Conduct Authority (FCA)

Known as the FCA, this UK based organisation gives accreditation to suitable organisations such as Panda EPOS to offer customers in particular sole traders and partnerships (who require regulated agreements) when lease hiring equipment and software. Panda EPOS is an FCA authorised firm (ref. number: 760936). For more information see this link