Finance Lease: Empower Your Business with Flexible Equipment Leasing
Using a finance lease for business equipment leasing is one of the most effective ways for businesses of all sizes to move expensive equipment purchases and management to an operational cost.
With Business Growth Finance, you also get a strategic partner to make the most of your financing.
What is a equipment leasing finance lease?
A finance lease is a powerful financial tool that allows businesses to use essential equipment without the immediate burden of ownership. With a Finance Lease, the risk of ownership is transferred to your business without transferring legal ownership of the equipment being purchased.
Additionally, there is a residual value given to the lease that falls within the ATO’s specific range, and you can decide at the end of the lease to pay it out, extend your term, or enter a new agreement.
How does a Finance Lease work?
With a Finance Lease, your finance provider purchases the equipment or vehicle being leased and allows you to use it after you agree to a monthly payment schedule. This arrangement provides flexibility and financial predictability, as you are not committed to purchasing the equipment at the end of the lease. You can simply return the asset, walk away, or purchase the asset from the lender for the pre-set residual value.
The benefits of a Finance Lease are:
- Flexibility: Easily upgrade the equipment if your business requirements change.
- Manageability: A piece of equipment paid for over a period of time is better on cash flow than purchasing equipment up-front.
- Tax Deductibility: Payments are 100% tax deductible, provided the equipment is used for 100% business purposes.
- End-of-Term Options: At the end of the term, you can make an offer to the finance company to purchase the goods at the pre-set residual value.
*The above should be used as a guide, please contact your accountant or Financial adviser to see what is applicable to your business.
What to Look for in a Finance Lease:
When considering a Finance Lease, it’s crucial to evaluate several factors to ensure it aligns with your business needs:
- Lease Terms: Review the lease terms carefully, including the duration, monthly payments, and any potential penalties for early termination.
- Flexibility: Ensure the lease offers flexibility to upgrade or change equipment as your business evolves.
- Tax Implications: Consult with your accountant to understand the tax benefits and implications of the lease.
- Provider Reputation: Choose a reputable finance provider with a track record of supporting businesses in your industry. Consider the return on investment on the equipment being purchased and the benefit to the business i.e. income generated.
Most importantly, however, look for a provider that will take the time to understand your business and what kind of financial package is right for you. At Business Growth Finance, we have a team of strategic experts that can help you make the right decisions that will maximise the value of your equipment expenditure.
*The above should be used as a guide, please contact your accountant or Financial adviser to see what is applicable to your business.
Which Businesses Benefit from a Finance Lease?
Finance Leases are particularly beneficial for businesses that require expensive equipment but prefer to avoid the upfront costs of purchasing. We support all of these businesses and enterprises. Here are some examples:
- Manufacturing: Companies that need to regularly update machinery and equipment to stay competitive.
- Construction: Businesses that require heavy machinery and vehicles for various projects.
- Healthcare: Medical practices that need the latest diagnostic and treatment equipment.
- IT and Technology: Firms that need to keep up with rapid technological advancements without the burden of ownership.
- Transportation and Logistics: Companies that need a fleet of vehicles but want to maintain financial flexibility.
Why We Provide the Best Finance Lease Options
At Business Growth Finance we pride ourselves on offering the best Finance Lease options tailored to your business needs. Here’s why you should choose us:
- Customised Solutions: We understand that every business is unique. Our finance lease options are customised to meet your specific requirements.
- Competitive Rates: We offer competitive rates that help you manage your cash flow effectively.
- Expert Support: Our team of experts is here to guide you through the leasing process, ensuring you make informed decisions.
- Flexible Terms: We provide flexible lease terms that allow you to upgrade or change equipment as your business grows.
- Reputable Provider: With years of experience and a strong reputation in the industry, we are a trusted partner for businesses across various sectors.
Other services
We offer a wide range of services to meet every type of business.
FAQs
What is the difference between a Finance Lease and an Operating Lease?
A Finance Lease transfers the risks and rewards of ownership to the lessee, while an Operating Lease does not. With a Finance Lease, you have the option to purchase the equipment at the end of the lease term, whereas an Operating Lease typically involves returning the equipment to the lessor.
Can I lease used equipment through a Business Equipment Leasing agreement?
Yes, Business Equipment Leasing can include both new and used equipment. Leasing used equipment can be a cost-effective solution for businesses looking to save on initial costs while still acquiring the necessary tools for their operations.
How does Equipment Leasing impact my business’s balance sheet?
Equipment Leasing can impact your balance sheet differently depending on the type of lease. A Finance Lease is recorded as an asset and a liability on your balance sheet, reflecting the ownership risks and rewards. This can affect your financial ratios and borrowing capacity.
Are there any restrictions on the types of equipment that can be leased?
Most types of business equipment can be leased, including machinery, vehicles, and technology. However, the specific terms and availability may vary depending on the Finance Lease provider and the nature of the equipment. It’s best to consult with your provider to understand any restrictions.
What happens if my business needs change during the lease term?
One of the advantages of Business Equipment Leasing is the flexibility it offers. If your business needs change, you may have options to upgrade or replace the equipment. It’s important to discuss these possibilities with your leasing provider to ensure your lease agreement accommodates potential changes.
Contact Us Today To Get Started
A Finance Lease is an excellent option for businesses looking to acquire essential equipment without the immediate financial burden of ownership. By choosing Business Growth Finance you gain access to flexible, tax-efficient, and customisable leasing solutions that support your business growth. Contact us today to learn more about how our Finance Lease options can benefit your business.
