Finance

Business Finance Lease

Business Finance Lease is a straightforward rental agreement that offers significant tax advantages, particularly if your business is VAT registered. Business Finance Lease is designed to make budgeting easier for your business.

With a Balloon style Finance Lease you can reduce your monthly rentals even further because the cars estimated resale value is taken into account when the rental payments are calculated. The estimated value is then offset to the end of the agreement, thereby reducing your rental payments. At the end of your lease agreement, you must sell the car to an unconnected third party.

With a Finance Lease your sales proceeds will first need to cover your outstanding balloon payment and any balance will then be refunded to you. Any shortfall remaining from the balloon, however, will be your responsibility to settle.

Like Business Contract Hire for VAT registered businesses, VAT is reclaimable on the rentals, based on 50% of the VAT on the capital element (assuming an element of private use) and 100% of the VAT for any maintenance charges.

The Benefits of Business Finance Lease

• Low initial outlay from just 1 months payment
• Flexible terms from 12 to 60 months
• Choice of rental period
• Ability to show the vehicle off your balance sheet
• More capital available for your business
• Improved cash flow
• You could benefit from the sale of the vehicle to a third party
• VAT reclaimable on the rentals
• Optional monthly maintenance packages