FREE Newsletter
'Keep up to date with all the latest business finance news'
A popular, flexible method of funding a broad spread of business assets. The financial company's finance lease offers all the practical benefits of ownership without any of the potential burdens.
Virtually all types of vehicles and business equipment. Special rules apply to company cars.
As owners, the finance company claims appropriate writing down allowances and these are reflected in the rentals. Customers should be able to offset the rentals against taxable profits, normally over the same period as their agreed depreciation policy. If in doubt, customers should consult their auditors.
Providing they are registered for VAT, they can normally claim the VAT payable on the rentals. Special rules apply to company cars.
The customer is responsible for the asset and for any outstanding balance on the agreement. Comprehensive insurance, covering at least the full replacement cost of the asset is therefore vital.
Unless the customer has servicing and maintenance built into the agreement, they are responsible for maintaining the asset in good condition. If they fit any replacement or additional parts to the asset, they become the property of the finance company.
In most cases the finance company would prefer the customers to introduce a buyer, and if a deal is acceptable to both parties, the finance company will raise a sales invoice accordingly.
If you looking for business funding, why don't you contact us now for FREE Impartial Advice.
Phone us at 0845 051 4588 or complete the online enquiry form
Alternatively take a moment to sign up to our free newsletter...