Operating Lease

Particularly effective for specialised assets and vehicles of higher value. A residual value is built into the agreement to reduce the rentals, thus helping cash flow and making 'off-balance sheet' funding possible.

• Asset normally treated as 'off-balance sheet' (subject to your auditors' approval), reduces gearing and improves some accounting ratios.
• Ideal for longer life assets with good residuals
• Funder bears the residual risk on the equipment's value.
• Rentals can be set according to your cash flow - especially beneficial if your business is seasonal.
• Rentals can normally be offset against taxable profit.