Leasing (Finance Lease)
Where ownership is not required, finance leasing works well for a broad spread of business assets as well as vehicles.
Key features & benefits:
- Preserves cashflow – offers the obvious cashflow benefits of paying in instalments.
- Initial deposits can be as low as one repayment/rental down with the VAT spread over the term of the agreement.
- Flexible – repayments/rentals can be structured according to your anticipated cashflow.
- Tax efficient - the repayments/rentals can normally be offset against taxable profits.
- Cost-effective - the Funder, as owner of the asset, claims the writing down allowances and passes them on to you in the form of lower repayments/rentals.
- At the end of the lease you can continue renting the equipment by paying annual secondary repayments/rentals or sell the goods to a third party and retain up to 99% of the sale proceeds.