Lease Finance Buying Guide
Overview
Paying cash for an asset can be a significant drain on
your working capital. Leasing the asset, however, gives
you access to the asset without paying for it all at once.
All forms of leasing are basically rental agreements giving
you (the lessee) the right to use an asset owned by the
lessor (finance company) for a specific period of time in
return for regular payments (rental payments). You can lease
almost anything, from equipment valued at a few thousand
pounds to assets worth millions. Leasing contracts are flexible
and can be tailored to your needs.
When leasing, consider its effects on accounting, reporting,
tax, and your cash flow. This section will give you a general
overview. It does not replace professional advice. You may
wish to consult your accounting and tax advisors before
finalising a lease transaction to reap the maximum benefit
and avoid complications.
