How Does It Work?
The item is purchased by the asset finance funder, who will then rent them item to you over an agreed term. A small initial payment is usually required, followed by a fixed monthly rental payment.
During the term of the lease, customers will usually be responsible for any servicing, repairs and maintenance that is required.
At the end of the required lease period, there are normally three options available:
- Extend the lease and continue to use the item as needed.
- The item can be handed back to the lender, with no further involvement from your business.
- The lender can sell the item and will usually allow you to share in a portion of the sale price.
Is a Finance Lease Right For My Business?
Choosing the right asset finance solution for your business can be a complex decision. There is often little difference in cost between a finance lease and hire purchase, the decision often comes down to how it will affect you from a taxation point of view.
To get started with your asset finance application, talk through your circumstances with an expert now. Either call us on 01922 620008 or enquire online.