A finance lease is the most cash efficient finance facility as the vat on the capital cost is repayable over the length of the agreement rather than being paid up front as part of a deposit.
A finance lease is a rental agreement but nowadays most funders will allow you to acquire the asset at the end of the contract period should you wish to.
Operating Leases remain available. These are also known as contract hire agreements and used extensively in the motor industry. Operating Leases are rental agreements where the hirer just hands back the asset at the end of the contract.
The benefit of an operating lease is that you just hire the asset for a set period of time. The downside is you have depilation charges and can never own the asset.
Traditional operating leases are restricted to very large assets (£1m+) where capital allowances and tax timings are critical.
If you want to find out if Finance Leasing is the right solution to help your business grow, give us a call on 01403 258934 or email us.