This is a rental agreement that can be used to finance a broad spread of business assets but is particularly effective for financing heavy commercial vehicles. The Funder builds in a residual value to reduce the rentals, thus helping cash flow and making ‘off balance sheet’ funding possible.
Key Features And Benefits:
- Preserves cashflow – offers the obvious cashflow benefits of paying in instalments;
- Initial deposits – can be as low as one monthly rental down with the VAT spread over the term of the agreement;
- Competitively priced – the Funder or manufacturer takes the risk in the residual value of the equipment and factors this into the rental, bringing down the periodic cost to you;
- Fixed maintenance contracts – can also be built into the monthly rental;
- Tax efficient – the rentals can normally be offset against taxable profits. The asset is normally treated as ‘off balance sheet’ (subject to your auditor’s approval);
- Flexible – at the end of the term, you can return the asset or extend the period. Either way, you do not carry the problem of disposal of the equipment.
Please do get in touch to discuss your needs in more detail.