The personal approach
to financing
Looking for assets for your company on a finance lease basis? Hall Asset Finance has got you covered. As a leading finance lease broker in the UK, we have a vast network of funding companies offering finance lease agreements in which you get full use of the asset without actually owning the equipment.
It is a type of agreement signed between a lessee (an organisation that requires an asset) and a lessor (a leasing company). The contract entails that the lessee has to make regular payments for an agreed-upon time in lieu of the use of the equipment, which could be machinery, vehicle, or any other business use assets.
Many companies opt for finance lease services in the UK as it allows them to use expensive equipment without actually owning it.
When a company contacts finance lease brokerage firms in the UK, they are connected to funding companies that offer finance lease services.
In a finance lease agreement, the ownership of the asset remains with the finance company, The customer (lessee) is only allowed to use the asset for the duration of the agreement. It works in a model similar to when you pay rent for the use of a product.
However, the major difference here is that all the rewards and risks associated with the asset’s ownership are transferred to the customer. The asset appears on the company’s balance sheet, while the outstanding rent is shown in the liability column.
When the contract ends, the customer can either extend the lease or return the asset. In some cases, the lessor also allows the lessee to sell the asset on the former’s behalf to a third party. They may get compensation in terms of a rental rebate. This, however, depends on the agreed-upon terms between both parties.
Hall Asset Finance can serve as your strategic partner if you’re looking for finance lease brokers in the UK. We offer a structured and adaptable approach to acquiring assets without the upfront costs associated with ownership. It enables businesses to preserve working capital while benefiting from the latest equipment and technology crucial for their operations
Residual Value Lease
It is a type of finance lease agreement in which the asset’s diminishing value is reflected in the regular rental amount. However, the customer has to make a final balloon payment that includes the estimated residual value of the asset. It is paid at the end of the agreement.
In case the leasing company sells the asset at a price higher than the predetermined balloon payment, they may refund a part of the proceeds to the customer. On the contrary, the customer is liable to make additional payments if the price of the asset falls below the balloon payment when it’s sold.
Fully-amortised Lease
This type of finance lease agreement requires the customer to pay the capital cost of the asset as well as the monthly rental fee. The ownership, as is with the case in Residual Value Lease, remains with the leasing company, while the lessee gets to retain and use the asset for a particular time period.
This step includes the selection of the asset you want to acquire.
Once you have finalised, share details about your organisation and the asset with our account manager.
We will talk with top leasing companies and gain approval for your asset acquisition on your behalf.
Once everything is finalised, you will be required to sign the contract for the finance lease of the asset.
After the agreement has been signed and you have made the initial deposit, you will be free to use the asset for your business.
Get in touch with us now to know more about our service and how we can help build finance for your assets.
