5 Benefits of a Finance Lease

5 Benefits of a Finance Lease

For many businesses, you need to invest in yourself to reach the next step. Whether that’s the latest technology, updated equipment, new furniture or additional team members. However, we all know it costs money to expand, and financial funds may not be available to all companies. That’s where Finance Leasing comes in. Bringing with it an easy solution and multiple benefits for businesses of any size.


What is a Finance Lease?

A Finance Lease Agreement is a form of finance where a Lender (the lessor) provides funds to a customer (the lessee). This enables a business to affordably lease assets they urgently require for their business. Although you will not be the legal owner of the asset until the final payment, the main advantage is that you can use it straight away.


How does it work?

Essentially, the assets you require are bought on your behalf by the Lender. This is then leased back to you over a period of time and set repayments will have been agreed upon within the loan terms. As the lessee, you choose which supplier you want the lessor to buy from, and they’ll be paid directly from the Lender. Your repayments are sent to the Lender until the full amount has been paid.


What are the Benefits of a Finance Lease?

  1. No Upfront Costs

Not all businesses have available funds to support a brand-new purchase. But when you need a cash injection to keep on top of your competitors, what do you do? Finance Leases don’t require an upfront cost. Your repayment amounts are agreed upon between you and the lender, meaning you have a regular amount to pay each month whilst keeping the bulk of your money within your bank for any unexpected expenditure.


  1. Fixed Payments

Knowing how much you’re repaying each month provides more control and reassurance over your finances. It also helps manage cash flow within your business; allowing you to invest in other areas, deal with unexpected costs and overall, make it easier to budget.


  1. Flexible Repayment Plans

By sourcing your Finance Lease via a Finance Broker like Busby Finance, we’ll help you find the right Lender to meet your requirements. We’ll also help set the best terms including the length of the agreement and reasonable repayments which fit into your budget.


  1. Tax Advantages

The total cost of finance lease rental payments are tax-deductible as a business expense against taxable profits. This means payments can be offset against taxable profits. The payments qualify for tax relief for the duration of the lease agreement and can be used to help reduce the business’s overall tax bill.


  1. Instant Access to Assets

The reason a business is looking to purchase new assets is usually that they need to keep operations running or they’re looking to develop their brand further. A Finance Lease allows companies to access, use or install the rented resources straight away. Avoiding any business downtime.


Apply for Finance Lease

Head to our dedicated Finance Lease page for further information or contact the Busby Finance team to begin your Finance Lease application.