There is a good level of flexibility available when it comes to your options when selecting a coach lease. You may choose an operating lease which incorporates a residual value to bring down your monthly payments. Alternatively opt for a finance lease which gives you all of the benefits of owning a coach without the potential problems that come from ownership.

If coach leasing is not appropriate for your situation then you may want to go for a straightforward hire purchase agreement where you make regular repayments and at the end of the term actually own the coach.

Our brokers will determine the best asset finance solution for you taking into account your business objectives and financial circumstances.

The leasing company will lease the equipment to the business. The leasing company would be planning to sell the asset as a second hand item at the end of the lease period or to lease it on to a different business. Therefore is does not need to recover the full cost of the equipment through the money received from the regular lease payments during the initial term.

Equipment financed under Operating Leases are not shown as assets on the balance sheet. In this case the operating lease cost is treated as a cost in the profit and loss account.

This type of leasing is typically used for equipment where there is a well-established second hand market. This would include assets such as cars, construction equipment, tractors, etc. The lease period will usually be for 24 months through to 36 months, although it can be much longer, but is always less than the working life of the asset.

Asset based loans are becoming increasingly more popular with both small businesses and larger companies and in the second half of 2008 alone asset based lending agreements worth £1.5bn were out in place.  According to surveys of accountants in the UK they report that over 50% of their clients were now actively considering these forms of asset financing versus very low percentages in the past due to the general tightening of credit availability in the UK in the last couple of years.

Asset based lending takes a traditional invoice finance facility which you would probably more usually recognise as invoice discounting or factoring which is secured on debtors only, and extends this to allow companies to borrow against all of their other qualifying business assets and equipment.

Investing in plant, machinery and other equipment is essential for most companies in order to compete effectively in the marketplace and grow revenues and profitability.  However this can prove a drain on your cash reserves so it is worth considering asset based lending in one form or another to meet your ongoing funding requirements.  When assessing asset based lending the finance providers consider two crucial factors, namely the useful working life of the fixed asset and an external valuation of the asset.