Finance Leasing

Finance lease is a full-payout, non-cancellable agreement, in which the lessee is responsible for maintenance, taxes, and insurance. The term of a finance lease tends to be longer, nearly covering the useful life of the equipment.

  • Quick decisions and finance application turnaround

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We believe that all UK businesses have unique needs when it comes to accessing finance.

Finance and Operating Leases

A finance lease is a long-term financial solution which ensures you have the equipment you need, without having to worry about the substantial upfront costs.

The full-payout, non-cancellable agreement gives you operating control of the asset, while the lender retains legal ownership for the duration of the finance lease term.

The agreement period of the lease would often be aligned with the equipment lifespan, so you can reap the benefits of extended use. And while you’re sharing the devaluation risks with the lender, if the asset value increases during your finance lease term, you can also reap the returns.

Generate more sales by offering a leasing option to your customers

Generate more sales by offering a leasing option to your customers.

If you manufacture, sell or resell capital equipment, either new or used, we can help.

We will provide your customers with the necessary finance to buy your equipment, enabling you to:

Overcome cost objections

Get paid fully upon installation

Increase your sales

Increase your profits

Protect your margin

Remove the need to discount

Offer the best equipment for the job

Save time chasing money and customers

Reduce the company debtor list

What is the difference between a finance lease and an operating lease?

A finance lease is a credit agreement chosen by business customers including limited companies, partnerships, and sole traders. It enables a company to acquire the assets needed to maintain a business, without needing to buy the asset outright. The asset and liability are recorded on the lessee’s balance sheet.

While an operating lease works on a similar principle – spreading the costs of equipment instead of purchasing upfront – the lessor maintains ownership of the assets, along with any maintenance responsibilities and potential devaluation risks. It is treated as a rental expense on any income statement.

Benefits of a finance lease

Flexible term length

Finance leasing offers flexibility in terms of length of agreement – normally between 1 and 5 years.

Undisrupted cashflow

Unlike making an outright purchase, with a finance lease you will retain cash within your business.

Effective financial planning

The finance lease repayment profile gives you confidence in being able to budget for the lifetime of the asset.

Tax advantages to leasing

Using the latest assets will ensure you remain competitive by keeping your costs low.

Fast turnaround times

Taking out a finance lease enables you to access the technology you need without lengthy delays.

Prolonged use

You have the potential to carry on using the asset at the end of the finance lease period for a nominal payment. You can also look to upgrade the equipment with another lease.

Risks of a finance lease

Things to be mindful of:

The finance lease agreement is secured against the asset

Non-payment could negatively affect the credit rating of your business and any guarantor

If you default on payments, the lender may recover the asset

Other products you may be interested in

We offer a range of business financing solutions to meet the needs of various industries. Backed with decades of banking and finance experience, our team works with thousands of companies throughout the UK. We help them optimise cashflow and achieve their goals through a range of business finance solutions, including:

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Equipment Leasing

Financing equipment for your business can often be a more cost-effective solution than making an outright purchase. Leasing allows you to conserve cash and other financial resources for future investments while still accessing the equipment and assets you need.

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Finance Leasing

With a finance lease, the lender owns the asset over the course of the agreement, but the maintenance, tax, and insurance responsibilities lie with you. It usually lasts for most of the asset’s lifespan, giving the lessee control and a stake in any value changes.

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Master Leasing

Want to cut down on paperwork? Then a master lease may be the solution. A master lease is an ongoing lease setup ideal for customers expecting multiple installations. It simplifies the process by requiring just one agreement and a single payment structure instead of multiple separate contracts and payments.

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Seasonal Leasing

Seasonal leases are tailored to the needs of companies with peak trading periods, allowing flexible payments based on cashflow. With a seasonal lease, businesses can make higher payments during busy months and lower ones when work is slower, ensuring affordability year-round.

Are you a Supplier looking for finance for your customers?

If you sell any form of equipment, machinery or commercial vehicles, why not offer point of sale finance to your customers? You can make supplier finance arrangements through any one of our group businesses, where local knowledge is backed by national support.