Asset Finance Leasing

Types Of Asset Finance Leasing

If you use cash to pay for an asset it can lead to a depletion of your working capital. As an alternative option you can often lease the asset which allows you to make use of it without a large capital commitment. When you lease an asset you pay the lessor, who maintains ownership, regular payments for the course of the agreement.

It is possible to lease a wide variety of equipment pertaining to many different industries. Some sectors in which asset finance leasing is commonplace are transport, manufacturing and construction. Leasing contracts are designed to be flexible and they can be adapted to suit the specific needs of your firm.

Asset finance leasing takes two main forms:

• Direct Leasing - With this type of leasing you find the asset you wish to acquire and inform the leasing company. They will then purchase the asset from the manufacturer or previous owner and rent it to you.
• Sale And Leaseback - This form is also known as purchase leaseback. In this case you sell an asset you already own to the lessor to free up capital and they rent it out to you.

Although leasing expensive equipment may initially seem beneficial it is important that you make sure it is the best option for your situation. It could have a major effect on your finances, including your cash flow and the levels of tax you pay. Making use of professional advice may help avoid any complications and allow you to receive the full benefits of leasing.

If you are looking for a leasing contractor why not contact us, our brokering service is free of charge! We act as a finance locator and can match your company with a suitable asset finance provider from our broad range of contacts.