Does your business require some heavy-duty mobile equipment like cranes, dozers or excavators for short- and medium-term? Or do you have an office that urgently needs technical upgrades or new IT equipment? Finance Leases are particularly advantageous equipment financing options in such situations because you can lease out equipment which would otherwise be very costly and expensive for you to acquire with a one-time expenditure.
A Finance Lease is a type of hire purchase lease that allows business owners to acquire equipment which is legally owned by a finance company or lender. The lessee continues to pay for the equipment through fixed installments, and at the end of the agreement the lessee has the option to pay the residual value of the equipment and gain ownership or renew the agreement with a revised installment plan. It is easy to become confused between a Finance Lease and an Operating Lease, which are principally the same but the former is mostly beneficial for equipment that has a long lifespan. This type of lease is a also advised for acquiring yellow goods i.e. forklifts, hoists, dozers, elevating platforms, generators, cranes etc. because most businesses require such mobile equipment provisionally and purchasing them outright can prove to be too expensive for the company.
If you are considering an Chattel Mortgage, you may also want to take a look at as other possible finance options.:
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