Operating Lease

An operating lease is a rental agreement which can be used to finance a broad spread of business assets but is particularly effective for high value retaining assets. This enables the funder to build in a strong residual value keeping rentals down and providing an off balance sheet funding solution.

Key Features & Benefits

Preserves cash flow – offering the benefit of paying in installments over a fixed period.
Initial deposits – can be as low as one repayment / rental down with the VAT spread over the term of the agreement.
Tax efficient – repayments are normally offset against taxable profit.
Competitively priced – the funder or manufacturer takes residual value risk in the equipment and factors this into the rental, bringing down the periodic cost to you, the customer.
Fixed maintenance contracts – can also be built into the monthly rental.
Flexible – at the end of the term there are usually three options, extend the term, purchase the asset outright for its fair market value or return the equipment with nothing further to pay.

Operating Lease

Key Features & Benefits

This website uses cookies.