Finance Leases

Finance leases are flexible financing options since they give you all the practical benefits of ownership of the equipment or asset without the headaches. In this scenario the finance company actually owns the asset while giving you the right to use the assets. This takes place without you needing to make a large upfront payment or fund the entire capital cost of the equipment.

VAT can be reclaimed on the regular payments that you make. Rentals for finance leases are tax deductable and are treated as an expense. Your company is not able to claim capital allowances as you do not own the asset.

Some finance companies allow you to include service and maintenance options within the price paid which gives you a predictable payment for budgeting purposes. The rental payment is not linked to the future value of the asset.

Fixed or variable interest rates are possible with the finance lease option, it depends what the finance company is prepared to offer you.
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