ASSET LEASE (Finance & Operating)

Benefits

A Finance Lease allows you to use an asset without the cost of full ownership
You can rent the asset over a period which suits your business with a small initial outlay
Rental can be tailored to meet your own cashflow needs
When the Lease term expires, you can benefit in a portion of the resale value
Leasing is very flexible which lends itself to almost all assets
You may be able to offset all the leasing costs against taxable profits
With an Operating Lease – you can have an arrangement whereby maintenance and repairs are managed by the Supplier
The Operating Lease allows you to use an asset to support your business rather than the burden of ownership and the rental is an allowable deduction
An Operating Lease is a product which lends itself to upgrades within the life of the agreement
Flexibility in offloading assets (though can incur fees)
Replacement and upgrading assets is simple
There are Off-balance sheet benefits for operating leases (though due to change by 2018/2019)
Residual Value (RVs) may make leasing a cheaper option than buying as the lessor takes the risk