Finance Lease - Affordable, Quick Start
If you do not wish to own, but would still like to enjoy many of the benefits of the hire purchase option, finance lease is for you. As with hire purchase, you make regular fixed repayments. A key difference though is that the VAT is payable on each lease payment rather than paying the full VAT at the outset. The finance lease starts with a primary lease period, typically 2-5 years which covers the full cost of the equipment. At the end of it you may request the equipment to be sold to a third party - the proceeds from the sale are yours to keep. Or you can opt for a secondary lease period and continue to use the equipment in exchange for a prearranged annual fee.
Easy Start Lower initial cash outlay, VAT is spread over the lease payments
Tax Benefit Your lease repayments are business expenses; you may be able to offset them against taxable profits
Easy Budgeting Fixed interest rates
Control You are entitled to 100% of the proceeds from the sale