Top Asset Finance Lenders UK
Securing the right financial support is crucial for your business’s
Asset leasing gives businesses the option of borrowing an asset for a fixed period, rather than having to buy it outright. Because you do not need to pay for a new piece of equipment outright, easing overcomes cash flow implications.
The fundamental characteristic of leasing, compared with other finance products is that the ownership never actually passes on to the customer.
By having a leasing agreement contract, a business is allowed to use equipment in exchange for regular payments. Finance lease and operating lease are the two accounting methods for leasing equipment and are used for different purposes and for different taxation purposes.
This transaction allows the leaser to use the asset but not own it. You can also sell the asset for a cash influx and then it can be leased back to you (sale and leaseback).
You don't have to pay the full cost of the asset up front, thus improving the cash flow of the business.
You have fixed payments over the life of the contract.
The business can deduct the full amount of leases from taxes.
In certain operating or contract hire leasing arrangements you aren’t responsible for maintenance.
1. Application: Choose the asset you would like to have use of and find a supplier.
2. Transaction: Sign up to pay the leases with the lender.
3. Exit: Pay your leases over a period of between 12 – 84 months at an agreed rate and extend or don’t at the end of the lease.
Rates vary from business to business based on the profile of the business and the asset. The leases are spread out over a fixed period and due to the nature of the finance, it is cheaper than an unsecured loan (single figures APR usually).
The lessee usually has the option to extend the lease contract which will impose a notional fee and may be subject to secondary rental costings thereafter in order to roll the contract along.
The asset is owned by the lessor whilst the lessee still gets the benefit of being able to use the asset.
The asset may allow for various tax deductions, the risk of the asset also sits off your balance sheet, allowing a reduction in your gearing ratios.
With leasing, you are not explicitly borrowing the cash, you are leasing the asset, so so long as you can afford the repayments, you should be able to take on assets of any value.
No there are no upfront costs and the VAT element is built into the leasing charge.
Securing the right financial support is crucial for your business’s
Why might you want to use a hire purchase arrangement?
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