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.
- Finance lease
This product differs some what from the other products detailed in this asset finance breakdown. Finance lease [or capital lease] is only the renting of the asset in question. Regular scheduled payments over an agreed term are made normally until the finance provider has recouped the purchase value of the asset.
The business doesn’t have the option to purchase the asset at the end of the lease although the lender may allow the business to share in a percentage of the sale value of the item once sold. Click, connect and stay up to date with the latest business news by starting a live chat, calling in or requesting a call back.