Finance leasing is a flexible, tax-efficient way for your business to acquire the equipment it needs without using up cash reserves, and you may realise almost all of the equipment value at the end of the term:
- Financing for up to 100% of the purchase price
- A Finance Lease offers the option to carry on renting the equipment for after the primary period, often at a reduced or nominal sum, OR if permitted in the lease contract, to sell it and retain a proportion of the cash proceeds when the lease term ends
- VAT is payable on the rentals, not on the purchase cost of the equipment
- Depending upon the asset type and term, you may be able to offset the rental payments against your taxable profit
- With a Finance Lease there is normally no need for additional security as the finance is usually secured on the equipment.
How a Finance Lease works
With a Finance Lease, ownership of the equipment purchased is retained by the Lessor (us), but we can allow you to sell the equipment on our behalf at the end of the term and keep all some or all of the proceeds.
Payment structures can be chosen that best match your business' cash-flow patterns to make budgeting easier. Finance Lease funding is normally shown as 'on balance sheet'.
A Finance Lease can be suitable for businesses of all sizes, and for all types of equipment. For example, if your business wants to buy commercial vehicles and avoid having to pay upfront the full VAT on the equipment cost, and want to recover some of its value at the end of a fixed period by acting as sales agent; then a Finance Lease could be the right finance solution for your business.