Equipment Finance Options
Lease Hire vs Purchase: A Comprehensive Comparison
Executive Summary: Lease Hire Advantages
Lease hire arrangements enable organisations to access premium coffee equipment without capital expenditure. This financing method provides predictable monthly payments, comprehensive service coverage, and the flexibility to upgrade equipment as operational requirements evolve.
1. Cash Flow Management and Budget Planning
- Cost distribution: Monthly operational expense rather than capital outlay.
- Capital preservation: Working capital remains available for core business investments.
- Predictable expenditure: Fixed monthly payments facilitate accurate budget forecasting.
2. Tax Efficiency Considerations
- Operating expense treatment: Lease hire payments are typically 100% tax-deductible as operating expenses, subject to eligibility requirements.
- Immediate tax relief: Compared to capital allowances on purchased equipment which are claimed over multiple years, lease hire payments may provide more immediate tax relief.
- Professional advice recommended: Tax treatment varies by individual circumstances and applicable legislation. Consult your accountant or tax advisor to confirm eligibility.
3. Technology Lifecycle Management
- Equipment upgrades: Transition to latest equipment at end of lease term without disposal concerns.
- Obsolescence mitigation: Maintain access to current technology and operational efficiency.
- Scalability: Adjust equipment specifications as organisational needs change.
Key Benefits of Lease Hire
- Enhanced cash flow management with predictable monthly costs.
- Tax-efficient structure as an operating expense in many cases*.
- Total Care+ service included: Comprehensive coverage for call-outs, parts, labour, and filtration systems, with loan equipment available during extended repairs.
- Built-in upgrade pathway at term conclusion to accommodate business growth.
Service and Maintenance Framework
Office Brew Crew provides tiered service plans tailored to operational requirements. Lease hire arrangements include comprehensive Total Care+ coverage for the full contract term. Purchase options include standard manufacturer warranty with optional extended coverage through OBC Care plans.
Service Plan Comparison
| Plan | Coverage Details | Recommended For |
|---|---|---|
| Standard Care | Engineer call-outs for equipment faults, parts and labour, telephone support, training refreshers, and optional annual water filter replacement. | Smaller teams with moderate usage requirements. |
| Priority Care | All Standard Care benefits plus expedited response times and proactive equipment health monitoring. | High-volume environments requiring minimal downtime. |
| Total Care+ Included with Lease Hire | All Priority Care benefits plus zero-cost call-outs, comprehensive parts and labour coverage, loan equipment during uplift repairs, annual water filter included, and preventative deep cleaning at recommended intervals. | Lease hire clients requiring maximum service certainty and operational continuity. |
Lease hire arrangements include Total Care+ as standard — all service visits, parts replacement, and filter maintenance are included throughout the contract term.
Important: All warranty coverage requires current water filtration systems and use of manufacturer-approved consumables. Coverage excludes damage from limescale buildup or equipment misuse. We provide guidance on maintenance protocols to ensure continued warranty validity.
Purchase Considerations
Outright purchase may be appropriate when:
- Your organisation prefers single-payment capital expenditure.
- Long-term equipment retention is planned with minimal upgrade requirements.
- Sufficient capital reserves are available and cash flow flexibility is not a priority.
- Your organisation has specific asset management or accounting preferences.
Comparative Analysis
| Consideration | Lease Hire | Purchase |
|---|---|---|
| Initial Investment | Minimal | Full equipment cost |
| Ongoing Cost Structure | Fixed monthly payments | None (after initial purchase) |
| Tax Treatment | Typically 100% deductible as operating expense* | Capital allowances claimed over time* |
| Service Coverage | Total Care+ included (parts, labour, call-outs, filtration) | Manufacturer warranty; optional OBC Care plans available |
| Downtime Protection | Loan equipment provided during extended repairs | Available as chargeable service or through OBC Care plans |
| Flexibility | Equipment upgrades available at term end | Long-term ownership; upgrade requires sale or disposal |
| Optimal For | Cash flow management, operational flexibility, growing organisations | Stable environments with available capital and long-term planning |
Lease hire arrangements offer financial flexibility, potential tax efficiency, and predictable operational costs — an optimal solution for organisations seeking premium coffee equipment without the commitment and constraints of ownership.
Professional Consultation
Our team is available to discuss both financing options and help you determine the most suitable arrangement for your organisation.
*Information provided for general guidance purposes only. Tax treatment depends on individual circumstances and applicable legislation. Always consult with your qualified accountant or tax advisor to confirm eligibility and specific implications for your organisation.
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