What is a Finance Lease Agreement?
Industrial cleaning machines are built to last, but this advanced technology doesn’t come cheap. They are an essential investment for many companies, but how can the costs be managed effectively? Here at Lincoln Cleaning Technology we can help. A Finance Lease agreement might be the solution.
A Finance Lease is like a long-term rental of business assets, such as equipment. Instead of buying the asset upfront, you pay rent to use it, with a flexible rental period to match your needs and cash flow fluctuations. Simply cover the cost of the payments, including the agreed interest, for the duration of the rental period. Then sit back and enjoy all the benefits of using the equipment, without the ties of ownership.
Who is the Finance Lease for?
It’s for businesses that need equipment but prefer not to purchase it outright. This avoids large upfront costs and gives you flexibility in your planning. A small business may wish to lease a single machine whereas a larger company may need a range of machines. This method works for everyone.
What happens at the end of the Finance Lease period?
You have various options at the end of the initial lease period:
- Keep on using: continue leasing the asset by extending the rental period
- Sell and earn: you can sell the equipment and keep a share of what the asset is sold for
- Return: give the equipment back to us if you no longer need it or want to upgrade to something newer
How does Finance Lease work?
Imagine you own a cafe and want a new floor cleaning machine. Maybe the Baby Plus Li floor scrubber, powered by lithium battery technology, has caught your eye. Instead of buying it, you opt for a Finance Lease. At Lincoln Cleaning Technology we provide the machine and lease it to you. You pay the agreed monthly rent, covering the cost of the machine and some interest.
Finance is secured against the cleaning machine. If you are unable to keep up with your payments, we can discuss this with you but machines may be repossessed, as a last resort. Products are subject to availability and all lending is subject to status and our lending criteria.
Tax Benefits of Finance Lease
If your business is VAT registered, you only pay VAT on the monthly rental payments not on the full purchase price of the equipment. This helps to reduce your taxable profit. If your business is not VAT registered, you can spread the VAT cost by including it in your monthly rental, instead of in a single payment.
More Benefits of Finance Lease
You get your equipment quickly without paying a large sum upfront. Payments are broken up into manageable monthly instalments
Customise payments to match your cash flow. You can adjust rental payments and lease periods to suit your needs.
Earn money back if you decide to sell at the end of the lease.
Leasing Solutions at Lincoln Cleaning Technology
Worried about paying a substantial amount upfront for the machines that your company needs? There is another way.
At Lincoln Cleaning Technology, we have leasing solutions to meet your needs. Call us for a chat today, we’re happy to help. Get in touch via email, phone or via our active LinkedIn channel.
