The primary purpose of a finance lease is to help your company finance the acquisition of an asset or equipment
Instalments paid under the lease repay the cost of the asset plus a return on capital to the lessor
The lessee has economic ownership of the asset.
Including the benefit of any residual value left in the asset once financing has been repaid, while the legal ownership remains with the lessor
HOW DOES A FINANCE LEASE WORK?
- Possession of the asset during the main part of its economic life.
- Asset is kept maintained and insured against loss or damage.
- Be entitled to the manufacturer’s warranties and after sales services.
Under a finance lease contract, the title to the asset will remain with the Lessor.
At the end of the lease term, the lessee has the right to acquire the asset for a small residual sum, or alternatively, the lessor may sell the asset
Benefits of entering into a finance lease agreement with us:
Your company is regarded as having the economic ownership of the leased asset or equipment, including the benefit of any residual value left in the asset once the financing has been repaid, while the legal ownership remains with the us.
Financial Lease provides great tax benefits for the lessee through depreciation and interest expense inclusion in their books. Leasing costs can be deducted as a business expense.