Finance Lease:

  • Customers pay an initial payment or advance rental(s), followed by periodic rentals over the remaining term – commonly 1 to 5 years.
  • VAT is paid – and reclaimed - on each rental rather than on the full cost of the goods.
  • Rentals can be made monthly, quarterly, annually or seasonally.
  • The Lessor retains title to the asset, but the customer is entitled to sell the goods on the Lessor’s behalf and retain up to 99% of the sale proceeds.
  • The asset is included in the customer’s balance sheet, and rentals can be tax deductible.
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