Finance Lease

What is a Finance Lease?

Finance leases give businesses the option of borrowing an asset for a fixed period, rather than having to buy it outright. Not only will this overcome the cash flow implications of paying for a new piece of equipment or machinery up front, it also means the issue of asset depreciation is avoided.

Your business pays for the use of the asset through regular instalments, which helps with cash flow management. Meanwhile, to make the finance lease more affordable, the asset finance company claims the capital allowances on the asset.

At the end of the contract, you can either purchase the assets or the asset finance company will sell it, possibly giving your business a share of the proceeds.

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How does a finance lease work?

  1. Asset finance company purchases the asset you require
  2. You lease the asset from them in return for fixed monthly payments
  3. Once the lease period is over, the asset finance company sells the asset and you may benefit from a share of the proceeds

Finance lease vs operating lease

Operating leases work much in the same way as finance leases. The primary difference between the two is that, with a finance lease, the maintenance costs on the asset would be your responsibility. Operating leases, on the other hand, transfer the liability to the asset finance company to protect you from any unexpected costs.

Is a finance lease right for my business?

When it comes to using new assets, there are a number of asset finance options available to cater for businesses’ different requirements, which can make it difficult to decide which one works best for you.

As a commercial finance broker, we listen to your needs and take them into consideration; especially when introducing the facility and asset finance companies which provide the right options for your business.

Email info@hiltonbaird.co.uk or call our team today on 0800 9774833 to find out more.

I was very impressed with Hilton-Baird’s attention to detail, especially in ascertaining our exact requirements. Above all else we were most impressed by the personal touch of the person who handled our enquiries. I would definitely recommend Hilton-Baird.

Stewart Morris, Managing Director, Eschol Brooke Enterprises Ltd

Funders we work with

  • Bibby Financial Services
  • Close Brothers Invoice Finance
  • Positive Cashflow Finance
  • Working Capital Partners
  • Secure Trust Bank
  • Asset Advantage
  • Barclays
  • PNC Business Credit
  • Ultimate Finance Group
  • IGF Invoice Finance
  • Aldermore Invoice Finance
  • Team Factors
  • Assetz Capital
  • GapCap Cashflow Finance
  • Woodsford Tradebridge
  • Hitachi Capital Invoice Finance
  • Lloyds Bank Commercial Finance
  • Partnership Invoice Finance
  • Catalyst Finance
  • Nucleus Commercial Finance
  • Market Invoice
  • iwoca
  • Outsauce
  • Innovation Finance
  • Trade Finance Partners
  • Shawbrook Business Credit
  • Everline
  • Amicus Commercial Finance
  • 1pm
  • Henry Howard Cashflow Finance
  • Calverton Finance
  • Factor 21
  • Pulse Cashflow Finance
  • Royal Bank of Scotland
  • Davenham Asset Finance
  • Platform Black
  • ABN AMRO Commercial Finance
  • Davenham Trade Finance
  • Invoice Cycle
  • Leumi ABL
  • Metro Bank SME Finance
  • Roma Finance
  • Regency Factors
  • Ashley Commercial Finance
  • Skipton Business Finance
  • Creative Capital
  • Santander Corporate & Commercial

Authorised and regulated by the Financial Conduct Authority (FCA number 730445)
We are a credit broker and not a lender and offer credit facilities from a panel of lenders

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