This method is particularly effective for high value, specialised equipment, or assets you need to support a specific contract. We calculate rentals based on the value of the asset over the period of time you require it. As a result, you can link rentals directly to the revenue your asset is set to generate.
Unlike finance lease, rentals won’t recover the full cost of the asset, but we protect you from any shortfall risk by guaranteeing the residual value at the end of the term.
We will give you the opportunity to extend the lease should you need to by recalculating the rentals.
You can generally deduct the full cost of the lease rentals from profits and the asset currently, will not appear on your balance sheet (under current UK accounting practice).