funding options

Operating lease

An operating lease runs for less than the full economic life of the asset, and you, the lessee is not liable for repaying the financing of its full value. The lessor retains the risk associated with the residual value of the asset at the end of the lease. This type of lease is frequently used when the asset is likely to have a resale value. You get the use of the asset, sometimes along with other service. Contract hire is an operating lease most frequently used in the hire of vehicle fleets.

This option is well worth considering for specialised and higher value assets. We own the asset and take the risk of it losing value. Meanwhile, you get to use it for as long as you wish.

Operating lease benefits:

  • Fixes your costs so for a set sum you can use the asset immediately
  • We decide upon a residual value that lowers your payments
  • Rentals can be tailored and flexible to match your seasonal cash flow
  • Interest options can be fixed or variable to suit you
  • This funding can be off-balance sheet but check with your accountant or auditor
  • VAT is reclaimable on the rentals, while payments can normally be offset against taxable profit please note special rules apply to cars
Call Peter on 01908 262662 to discuss your asset financing requirements