Finance Lease

With a finance lease the finance company owns the asset you purchase. Rentals are paid to the finance company throughout the term of the agreement and any VAT due on the asset is payable on the rentals rather than the purchase price. A Finance Lease can be suitable for businesses of all sizes and all types of assets. You can normally sell the asset on behalf of the finance company at the end of the term and keep most of the proceeds or keep the asset for a nominal annual sum. The funding is on balance sheet.

Finance lease benefits

• Low up-front costs – for just a small outlay, you can use the assets immediately
• Flexible repayment structure – rental payments can be tailored to match your cash flow
• Fixed or variable interest options – you decide which suits you best
• Tax advantages – VAT is payable on the rentals, not the purchase price, while payments can normally be offset against taxable profit (special rules apply to cars). Writing down allowances are claimed by the lessor however the cost saving is passed on to the lessee by a reduction in the monthly rentals

Assets you can finance with finance lease

• Cars and Vans
• HGVs
• Busses and coaches
• Plant and Machinery
• Agricultural equipment
• Construction Equipment
• IT and communications technology