Finance Lease

What is Finance Lease

Our Finance Lease arrangements let a business use the equipment they need without having to buy it outright. It also offers business customers use of an asset of newer, higher specification than they could otherwise purchase.

They pay us rent for the full use of it. The rental period is flexible and can be tailored to their needs and cash flow. During this period, they will pay us the full cost of the asset, including interest.

Then, when they reach the end of the primary lease term, they can choose to:

Continue to use the asset by entering a secondary rental period
Sell the asset and keep a portion of the income from the sale
Return it to us

Products and services are subject to eligibility, status, terms and conditions and availability. All lending is subject to status and our lending criteria. The right to decline any application is reserved.

Benefits of Finance Lease

Low initial outlay: Quick access to the asset they need. The cost of the asset is paid by monthly instalments rather than a large upfront investment
Flexibility: Rental payments and lease periods can be designed to match their cash flow
Cash back: Receive most of the income from selling the asset if they choose to do so at the end of the lease
Tax advantages: VAT is payable on the rentals (if they are VAT registered), not the purchase price and may be offset against taxable profit. If the company is not VAT registered, they can choose to spread the VAT costs across the term of the lease by incorporating it into their monthly rental
For more information on VAT registration, please visit gov.uk/vat-registration/overview

Finance is secured against the asset and/or equipment. If the business is unable to keep up with payments we may repossess the asset and/or equipment.