Finance Lease

How it works

An agreement allowing your customer (the Lessee) to ‘use’ the asset for an agreed term in return for regular rental payments. ‘Title’ (or ownership) is retained by Societe Generale Equipment Finance (the Lessor).

Finance Lease funding is normally shown as ‘on balance sheet’.


  • Financing for up to 100% of the purchase price
  • VAT is payable on the rentals, not on the purchase price of the asset
  • Lower capital outlay than a Hire Purchase agreement
  • ‘On balance sheet’ financing agreement
  • Option to continue to rent the asset after the primary period
  • Payment structure agreed at the outset for easy budgeting
  • Repayments can be matched to cash-flow and/or income stream

End of term option for the customer

  • Retain – pay secondary rentals for continued use of the asset
  • Renew – use the asset as a trade in against a new model
  • Dispose – sell the equipment as our agent and keep the majority of the sales proceeds – if appropriate the asset can be declared as scrap