Over the next week we will be detailing the various types of asset finance available to businesses, the strengths, weaknesses and the general overview of the products available. Its important to remember that with any commercial product it isn’t a ‘one size fits all’ scenario and your broker, intermediary or financial advisor should advise accordingly.
- Operating Leasing
Very much a niche commercial product for businesses, Operating Finance is very much like Equipment Finance but tends to be used for specialist equipment/projects undertaken but not required on a full time basis. As you would imagine, the overall cost generally tend to be a lot cheaper as the duration (term) in shorter and you once finished with the machinery return to the lender with purchase.
We would expect companies hoping to ‘test the waters’ in a new space within their industry or businesses applying for larger scale tenders to utilise this facility in taking a low risk jaunt into an untested area.