Operating Lease

You pay a fixed regular rental to use the asset and never own it. This can allow you the use of a high value asset without the risks of ownership and loss in value. The risks and rewards of the residual value in the asset at the end of the lease sit with the lessor, but the fixed contract terms allow the lessee certainty, noting that lease terms can be matched with the length of the lessees own customer contract.

Operating leases can usually be extended and typically (but not always) extension rentals drop significantly relative to the primary period. Specialist Asset Finance can advise on extensions of existing leases if required.

Rentals are usually based on fixed interest rate funding. The asset must be maintained in accordance with the lessor’s terms and conditions. VAT is charged on lease payments.

Subject to auditor sanction the asset can be held off balance sheet. Although this likely to change in the future - please call if you would like to discuss this.

All products are subject to status and individual lenders’ underwriting criteria.