Prices for store pick up
(not including delivery or shipping)
All briquetting machines work on a given number of compression cycles per minute and therefore the output is always dependent upon the material being briquetted, so the denser the material, the higher the output. Where there is energy used to compact material, another energy is generated this being in the form of heat and depending upon the usage of a machine, a coolant may be required. Briquettes are held together without the need of any additives being introduced and are suitable for most shavings and sawdust produced from joinery companies and furniture makers as the ideal moisture content needs to be between 8 and 14% The ‘solidity’ of a briquette varies from machine to machine, some are more crumbly than others be aware of this if they are to be bagged and sold. Always assess for yourself the level of output and the quality of briquette by seeing one working using an example of the waste you are looking to convert. Choosing the correct machine can be quite easy, all you need to know is the average amount of sawdust/shavings you produce on a weekly basis, this can be by volume or typically the number of waste sacks (these are normally 500mm diameter x 1000mm long) and the type of material, namely hardwood or softwood or roughly what percentage of each. A briquetter can reduce operating costs for companies currently sending their waste to landfill and further reduce operating costs if the briquettes are used as a heat source through wood burning space heaters. Briquettes can also be the source of additional revenue with a 10 kg bag usually selling around £3.50 , so for a machine producing 60Kg/hour, 8 hours/day would equate to 240 bags/ week i.e. £840/week or over 12 months (based on 48 working weeks) £40,320 per annum…!! (one of our customers reported a payback time of just 6 months..!) Briquettes have a calorific value between 3,500 and 3,800 Kcal/Kg. Materials that can be briquetted include, wood waste, cork dust, bark, polystyrene, polypropylene, polyurethene, rubber, fabrics, paper, cardboard etc.
Our finance partners can arrange funding to acquire equipment at competitive rates. We can offer loan, lease and hire purchase agreements to suit our customers needs.
*****We have a handy leasing calculator available on request help identify the monthly costings and tax savings*******
The Tax Benefits of Leasing explained
Leasing converts a large capital expenditure into small monthly payments. Hence the company has the profit-making equipment immediately and keeps their cash reserve available.
Rather than investing the precious cash reserves in depreciating assets, the company can use them to help increase profits.
Lease Rental is 100% Tax deductible
The main reason that the majority of companies lease rather than purchase equipment is that they use leasing as a method of reducing their tax bills. This is because lease rental is 100% tax deductible, and all payments made for the equipment are written off against the company’s tax bill. For any profit making business, this means a substantial saving in the real cost of acquiring equipment by lease rental. This could mean a saving of between 20-40% of the lease payments, depending on the rate of tax you pay*.
Payments on qualifying leases are written off as direct operating expenses, rather than a debt or outstanding liability, thus reducing short term taxable income.
Any capital allowances are passed on to you, and lease payments can be offset against taxable profits. VAT can also be reclaimed on monthly payments. This status as a “lease” as opposed to a “liability” on a company’s balance sheet is something the banks like to see, which is why an operating lease can be attractive. For this reason, leasing is often referred to as ‘off balance sheet’ financing – a tremendous advantage to both large and small businesses
Ownership at the end of the lease
Lease rental is just that, a rental or hire agreement. Title of the goods remains with the Lessor (either Kennet or assigned to a bank), which means the equipment does not show on the companies balance sheet, therefore not needing to be depreciated over a fixed period. If Kennet broker the funding, they are the “third party” involved within the lease agreements. In effect, Kennet buys the equipment from the supplier and then sell it on to the customer. This means that the customer can take full advantage of all the benefits of leasing but still owns it at the end.
The disadvantage of buying equipment outright
The disadvantage to buying equipment out-right, is that the capital invested becomes a depreciating asset. This is an asset that’s value decreases over time.
The total amount that assets have depreciated by during a reporting period is shown on the cashflow statement, and also makes up part of the expenses shown on the income statement. The amount that assets have depreciated to by the end date is shown on the balance sheet.
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How the tax advantages of leasing works – in numbers
You lease a machine that costs £5,000 + VAT, over a 3 year term.
The monthly payments would be £162.50 + VAT over 36 months
Total paid over the term of the lease £5850
20% tax can be reclaimed on the total lease payments over the 3 years, so a total of £1170
Therefore the net cost of the lease is £5850 – £1170 = £4680*
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*Your accountant will be able to provide more information. This information is provided for guidance only.
For more information, call Mark Suckley and his team at Kennet Equipment Leasing on 01675 469215 or email marksteam@kennet-leasing.co.uk.
All prices are quoted EXWORKS Bacup. You can arrange your own collection or if preferred we can arrange delivery.
We have Transport partners with a variety of vehicles including HIAB. Please enquire for a quotation.
Collections: Briquette Machinery, Genisis Woodworking Machinery, New Woodwork Machinery, Weinig and planer moulder refurb
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