A Finance Lease can be an effective way for a company to acquire goods.
The financier purchases the asset on your behalf with the financing costs calculated on the purchase price of the goods. This amount is then paid off over the agreed period of the lease.
The lease rentals are generally paid either monthly, quarterly, semi-annually or annually. If you a have a business that has seasonal income, you can elect to make your repayments on a seasonal or irregular basis. The repayments are generally a tax deduction.
A residual value is required for a finance lease, however, this can be negotiated within an approved range at the commencement of the lease.
