FINANCE LEASE

Under a finance lease, the finance company owns the asset throughout and the agreement covers a set period – considered to be the full economic life of the asset. Often, there is an option to continue leasing at a reduced, or ‘peppercorn’ rate, at the end of the contracted period.

As you are not the owner of the asset, you cannot sell the asset during the rental period.

The finance company can claim the writing-down allowances and pass this benefit to you in reduced rentals.

Key Features and Benefits

 

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

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

Flexible – repayments/rentals can be structured according to your anticipated cashflow.

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

Cost-effective – the Funder, as owner of the asset, claims the writing down allowances and passes them on to you in the form of lower repayments/rentals.

Additional Information

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Robinson Financial Services Ltd is an independent asset finance broker not a lender as such we can introduce you to a wide range of finance providers depending on your requirements and circumstances. We are not independent financial advisors and so are unable to provide you with independent financial advice. Robinson Financial Services Ltd may receive payment(s) or other benefit from the finance provider if you decide to enter into an agreement with them.

Robinson Financial Services Ltd is an Appointed Representative of AFS Compliance Limited, which is Authorised and Regulated by the Financial Conduct Authority, form number 625035.  Robinson Financial Services Ltd is a franchisee of Asset Finance Solutions (UK) Limited www.afsuk.com

© 2019 by Robinson Financial Services Ltd