Similar to a finance lease, a tax based lease is a long-term hire arrangement between the customer and the Funder. The customer pays rental for the use of the equipment and at the end of the hire period the goods can either be retained for an extended secondary period or alternatively, disposed of. Companies can benefit from a proportion of the sale proceeds upon disposal. This is particularly suited to longer-term transactions for large items of machinery linked over 5-7 years.

Features & Benefits:

• Tax-efficient - the repayments/rentals are offset against taxable profits

• Cost-effective - the Funder, as owner of the asset, claims the writing down allowances and passes them on to you in the form of lower repayments/rentals

• Preserves cashflow - offers the obvious cashflow benefits of paying in instalments