Finance Lease Explained
A finance lease is an agreement for a fixed period of time where payments are made in return for the use of equipment. The lessor retains ownership of the asset however the lessee acquires full use of the asset throughout the course of the contract.
The Benefit of a Finance Lease
Leasing business equipment makes good business sense. Even if you have sufficient capital resources, it can often be more beneficial to spread the cost of new assets over an appropriate period of time.
The benefits of leasing include:
- Spread the Costs – Leasing plans enable you to get the technology you need now while upgrade options will protect you from equipment becoming obsolete.
- Conserve Working Capital – Cash remains king in all economic conditions. Preserving your working capital will enable you to invest in things that provide you with a greater return than purchasing equipment.
- Improve Return on Investment – Paying over time allows you to pay as you use, so you achieve a faster return than if you pay upfront.
- Flexible Payment Options – Pay Monthly, Quarterly, Semi-Annually or Annually by Direct Debit, Standing Order or Invoice.
- Easy Upgrades – Leasing plans enable you to get the technology you need now while upgrade options will protect you from equipment becoming obsolete.
- Total Solution Financing – We can also include software, installation and other services in the arrangement.
- Tax-Efficient – Leasing payments may be offset against taxable profits. You should however check this position with your accountant.
- Fast Credit Decisions – Credit decisions can be made within a few hours and documentation emailed for your signature.
- Easy Equipment Disposal – We are able to provide a full service for disposal and recycling of redundant equipment at the end of the assets useful life.