Finance Lease
A Finance Lease agreement offers use of an asset without ownership, which remains with the lessor. At the end of the lease, with our permission, you can sell the asset to an independent third party. You will retain the majority of any sale proceeds as a rental rebate.
A Finance Lease can enable an asset to be shown on the balance sheet in a similar way to Hire Purchase. VAT is payable with each rental, therefore there is no large VAT outlay at the outset for the customer.
Potential Benefits
Low initial outlay
Easy to arrange
Use without ownership
Tax relief for rentals
Preserves other lines of credit
TYPICAL EXAMPLE
Machine Cost |
£50,000.00 + VAT |
Prepayment |
£5,000.00 + VAT |
59 rentals |
£972.00 + VAT |
