Finance Lease

A finance lease is a popular finance solution for many businesses who need assets or equipment. Quite simply a finance lease is where your business "rents" an asset over a set period of time and benefits from all monthly instalments being fully tax deductible. There are different options available including Fixed Term lease and minimum term Lease.

What is a Business Finance Lease?

With a finance lease agreement, the finance provider purchases an asset on your behalf (you select the equipment from the supplier of your choice) before leasing this back to you. At the end of the finance period there are options available.  You can enter a second rental period or alternatively assign a third party to purchase the asset. 
Finance leasing is a tax-efficient, cost-effective way to acquire the equipment your business needs. It is ideal for businesses looking to manage their cash flow and the ability to spread the VAT over the period of the contract aids cashflow.

What is a Business Finance Lease?

The Benefits of a Finance Lease

  • New and Used assets can be funded on a lease
  • No major upfront costs
  • Flexible repayment structure – rental payments tailored to match your requirements
  • VAT spread across the term and not in advance
  • Tax advantages – finance lease rentals can be 100% tax deductible against profits
  • Fixed interest/repayments – the interest rate and repayment amounts are fixed from the outset, helping you to budget more effectively
  • Options at the end of the contract to retain title

Get in touch with us today to learn about the options available to you and to find out more.