Types of leasing

Leasing comes in three main forms or types.

Finance leasing

A medium-term lease over the expected life of the equipment which is usually three years or more. Subsequently you can pay a nominal rent to continue using the equipment if you wish. 

The leasing company should have recovered the cost of the equipment plus their charges over the period of the original lease.

The lessee is responsible for the maintenance and insurance of the equipment despite ownership still being vested in the leasing company.

Operating leasing

This is used where the company doesn’t require the equipment for the whole of it’s working life.

The leasing company will take the asset back at the end of the lease.

The leasing company is responsible for maintenance and insurance

Contract hire

Used mainly for company vehicles.

The leasing company shares the responsibility for management and maintenance, such as car repairs and servicing.

The asset isn’t shown on the company’s balance sheet.

 

At Asset Finance Solutions, we have a good relationship with many of these niche players, and know who can offer what type of funding to whom. Even more importantly our broking service can put you in touch with UK asset finance companies who are innovative enough to devise new ways to help where possible.

As a broker our services are completely free of charge so please contact us with no obligation to see if we can help.