A rental agreement which can be used to finance a broad spread of business assets but is particularly effective for financing commercial vehicles, such as HGV’s and Buses/Coaches.
Attractive for those businesses who require 'off-balance sheet' funding and as the agreement includes a residual value, the monthly rental payment is lower than normally associated with HP or Finance Leasing.
The benefits:-
- Low deposits – as little as one monthly rental down with the VAT spread over the term of the agreement
- Helps preserve your cash flow
- Competitively priced –as the finance company includes a residual value on the vehicle/equipment into the finance deal, the monthly cost is lower for your business
- Fixed maintenance contracts may also be built in to the monthly rental.
- Tax efficient – could be a more tax advantageous when compared to HP
- ‘Off-balance sheet' (subject to your accountants approval)
