Asset Finance - Finance Lease
Finance Lease agreements are a common form of flexible funding. Customers are able to operate the leased goods or equipment in their business without having ownership, as the Lessor retains risks and rewards of ownership. Agreement periods can range from 2-7 years.
Specific Benefits
- Cash flow is improved when compared with a hire purchase facility as the VAT element of a lease is based on the net rental amounts as and when they fall due for payment.
- Simple tax accounting for standard (non-car) finance leases, the rentals are currently fully tax deductible as they are paid.
- Should the goods continue to be required then the lease can normally be extended for a secondary period, at a lower monthly or annual rental.
- Customers can benefit from sale proceeds.
Variations
Balloon Leases - In certain circumstances, it is possible to fund vehicles or equipment to a fixed future value, this is known as a Finance Lease with a ‘Balloon’ payment at the end of the minimum contract term (primary period). At the end of the term the goods are sold for a price equal to or greater than the Balloon value, to a third party, to repay said Balloon. In this way the monthly repayments are much lower, than if the lessee had repaid the full vehicle or equipment cost over the agreement term.
Sale & Leaseback - Sale and Leaseback is an option that releases cash back into a business through the sale and retention of fixed assets that are already historically owned, or can be used when a customer has recently bought goods themselves and wishes to return the capital to the business. This facility allows you to sell to an agreeable Bank / Finance company the goods/equipment that you already own in return for a cash lump sum.
Benefits
- As with all finance options, the lease contract will give a known term and fixed payment profile, capital is conserved for more profitable use elsewhere.
- Cash flow can be managed by tailoring the financial product to the customer’s requirements and the granting of specific finance preserves the customer’s borrowing ability by giving an additional line of credit.
- Anglo Finance can offer fixed interest rate or variable rate payment profiles, seasonal payment structures and other flexible payment profiles to suit practically all customer requirements that allow, for example, commissioning of equipment.
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Finance Lease - Operating Lease - Commercial Vehicle Leasing - Commercial Vehicle Operating Lease - Trailer Operating Lease - Trailer Leasing - Light Commercial Operating Lease - Light Commercial Leasing - Van Operating Lease - Van Leasing - Car Leasing - Car Operating Lease - Plant Leasing - Machinery Leasing - Equipment Leasing - Asset Refinance - Sale & Lease Back Facilities
