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Finance Lease
A Finance lease is where the business rents the asset over a set period as opposed to owning the assets.
At the end of the term you can still take ownership of the asset via a 3rd party for a fee (Usually 5% of the asset valuation at the end of the term).
What are the benefits of Finance Lease?
Spread the the whole VAT over the course of the agreement to reduce initial upfront costs.
Rentals are fully tax deductible as they are classed as an operating expense.
Can lend on new & used assets, generally of any age.
Usually works out cheaper than a business loan due to being secured lending.
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