How does a Finance Lease work?

How Finance Lease works

Think of Finance Lease as a long-term rental for business assets (or equipment, which is the same thing). Instead of buying the asset upfront, you pay rent to use it, with a flexible rental period to match your needs and cash flow fluctuations, which we know can change month-to-month. You cover the cost of the payments, including the agreed interest, for the duration of the rental period.

At the end of the initial lease, you have various options available to you:

Keep on using: Continue leasing the asset by extending the rental period – otherwise known as a ‘secondary rental period’
Sell and earn: You can sell the equipment and keep a share of what the asset is sold for
Return: Give the equipment back to us if you no longer need it or want to upgrade to something newer

Who is Finance Lease for?

Finance lease is for businesses that need equipment but prefer not to purchase it outright. It's suitable for companies looking to use assets like machinery, vehicles, or technology without a large upfront cost.

Whether you're a small construction firm needing a forklift or a larger operation needing specialist equipment, finance lease offers flexibility by allowing you to pay for the equipment over time while having the option to keep, sell, or return it at the end of the lease term.

Benefits of Finance Lease

Get what you need without a big upfront cost: You can quickly get the equipment you want without paying a large sum upfront. Instead, payments are broken into monthly instalments.
Customise payments to match your cash flow: Work with us to adjust the rental payments and lease periods to match how and when money comes into your business.
Earn money back: If you decide to sell the equipment at the end of the lease, you will get money from the sale.
Tax Benefits: If your business is VAT registered, you only pay VAT on the monthly rental payments, not on the entire purchase price. This helps reduce your taxable profit, potentially saving you money on taxes. If your business is not VAT registered, you can spread the VAT cost by including it in your monthly rental rather than paying it as a one-off payment.
For more information on VAT registration, please visit gov.uk/vat-registration/overview

Finance is secured against the asset and/or equipment. If you're unable to keep up with your payments we may repossess the asset and/or equipment.

Products and services are subject to eligibility, status, terms and conditions and availability. All lending is subject to status and our lending criteria. The right to decline any application is reserved.

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