When it comes to funding options for businesses, asset finance
Business financing simplified
in a nutshell
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).