Looking for assets for your company on a finance lease basis? Hall Asset Finance has got you covered. As a leading financing 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 using the equipment, which could be machinery, vehicle, or any other business use assets.
Many companies opt for asset finance leasing in the UK as it allows them to use expensive equipment without actually owning it.
In this arrangement, 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, paid at the end of the agreement. If the leasing company sells the asset at a price higher than the predetermined balloon payment, it may refund a part of the proceeds to the customer.
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.
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.
Identify essential equipment or vehicles and choose a leasing company with a strong industry reputation and customer feedback.
Thoroughly review the lease agreement focusing on payment terms, lease duration, and clauses for termination. Negotiate to secure favourable terms that align with your business needs.
Opt for leases that offer flexible payment options to suit your cash flow and include maintenance services to ensure optimal operation of the leased assets.
Seek advice from financial or legal experts to understand the implications of the lease. Finalise the agreement with all terms documented and plan for the lease's end-of-term options.
The timeline for securing an equipment finance lease in the UK typically ranges from a few days to several weeks, influenced by the complexity of the agreement and the speed of documentation. Our expert team prioritises a streamlined process, ensuring quick and accurate verifications and assessments. We are committed to providing a swift and transparent service, minimising delays so your business can gain access to necessary financing.
Leverage our deep understanding of finance leasing to tailor solutions that align precisely with your business goals and operational needs.
Benefit from our efficient processing that accelerates the leasing timeline, ensuring you receive your financing swiftly and without unnecessary delays.
Enjoy continuous support from our team of experts who are dedicated to ensuring smooth equipment finance leasing in the UK with ideal outcomes for your business.
Ready to elevate your business with the right financing solutions? Connect with Hall Asset Finance today and discover how we can tailor financial strategies that align perfectly with your needs.
Whether you’re looking to invest in new equipment, expand operations, or enhance sustainability practices, our expert team is here to guide you – every step of the way!
