A Finance Lease from Cornish Business Loans is a way of funding assets that lets you or your business use the equipment you need, without having the purchase it outright. In short, we remain the asset owner and you simply pay us rent for exclusive use of the asset.
Our terms/rental periods flex to the needs of your business and tailored to your cash flow. Throughout the agreed period, the full cost of the asset is paid to us, plus subject to status interest. At the end of the agreed lease term you can choose to continue to use the asset (by entering a secondary agreement), sell the asset and retain a portion of the income from the sale, or simply return the asset to us.
The advantages and benefits of Finance Lease
- Finance leasing provides a low initial outlay and quick access to the needed asset, without heavy investment upfront.
- Flexibility of repayment structuring is available to allow for seasonal factors.
- You receive most of the income from the sale of the asset should you choose to do so at the end of the lease.
- Finance leasing assets can be more tax efficient than standard-term loans. Rentals can usually be offset against pre-tax profits, and VAT can be reclaimed.