A finance lease is a method of financing an asset where the asset remains the property of the finance company, with the asset or equipment effectively hired out to a business. The business can then use this asset while paying an effective rental rather than a repayment. You also have the option to retain use and ownership of the asset when the lease contract ends. Unlike Hire Purchase(HP) you do not pay the full VAT upfront but you do pay VAT on each rental.
“After some great advice from Capital, Hire Purchase was the ideal solution for our business equipment finance.”
Benefits of Leasing
- Have the equipment you need when you need it, not when budgets allow
- Fixed and structured payments that fit in with your budget
- Keep working capital for alternative projects
- The ability to potentially offset 100% of rental costs against the corporate tax liability of your company
- Protecting existing lines of credit for use elsewhere
Thinking about a Finance Lease?
Our team are on hand to provide answers to any questions you may have. Call us on 01792 365 011 or click below to get a quick, free quotation.