T&Cs will apply, subject to status and affordability. Any asset used as security may be at risk if you do not repay any debt secured on it.<\/b><\/p>\n<\/section>\n<\/article>\n
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The finance company will buy the equipment and lease it to the customer in return for monthly rentals. VAT is calculated on the monthly rentals, and therefore not paid at the start of the agreement, thus, reducing the upfront cost.<\/p>\n
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At the end of the primary period the customer can:<\/p>\n
\u2022 hand the equipment back to the finance company<\/p>\n
\u2022 sell to a third party on behalf of the finance company and retain a percentage of the sales proceeds<\/p>\n
\u2022 continue renting it after the primary period ends<\/p>\n
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The machine must be comprehensively insured by the lessee.<\/p>\n
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Benefits: <\/b><\/p>\n
\u2022 Cost control<\/b> \u2013 size and timing of rentals agreed in advance to support confident budgeting.<\/p>\n
\u2022 Tax efficient<\/b> \u2013 rentals are normally fully allowable against taxable profit.<\/p>\n
\u2022 Account treatment<\/b> \u2013 Asset can be treated as \u201con balance sheet\u201d.<\/p>\n
\u2022 Free up capital <\/b>\u2013 VAT is spread over the life of the agreement, keeping upfront costs down, which can have cash-flow value.<\/p>\n
\u2022 Disposal proceeds<\/b> \u2013 Lessee benefits from the sale proceeds on disposal following the end of the Primary Period, so repays careful use.<\/p>\n
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T&Cs will apply, subject to status and affordability. Any asset used as security may be at risk if you do not repay any debt secured on it.<\/b><\/p>\n<\/section>\n<\/article>\n <\/main><\/p>\n