Operating Lease

This is a rental agreement which can be used to finance a broad spread of business assets but is particularly effective for financing heavy commercial vehicles. The Funder builds in a residual value to reduce the rentals, thus helping cash flow and making ‘off-balance sheet’ funding possible.

Key Features and Benefits

Preserves cashflow – offers the obvious cashflow benefits of paying in instalments.

Initial deposits – can be as low as one monthly rental down with the VAT spread over the term of the agreement.

Competitively priced – the Funder or manufacturer takes the risk in the residual value of the equipment and factors this into the rental, bringing down the periodic cost to you.

Fixed maintenance contracts – can also be built in to the monthly rental

Tax efficient – the rentals can normally be offset against taxable profits

Asset normally treated as ‘off-balance sheet’ (subject to your auditors’ approval).

Flexible – at the end of the term, you can return the asset or extend the period. Either way, you do not carry the problem of disposal of the equipment.

For Further Information Please Contact Your Local Finance Specialist