Use the kit, spread the cost.
A finance lease lets you rent essential business equipment over a fixed primary term, with VAT spread across each rental. Lower upfront cost than hire purchase, fully tax-deductible payments, and three flexible end-of-term options.
At a glance
- No deposit required on most deals
- Hard and soft assets from £5k
- Annual flat rates from 6.4%
- Rentals 100% allowable against profits
- Continue, sell or return at end of term
From
6.4%
Decision
24 hrs
Up to
£2m
From enquiry to funded — usually inside a week.
Enquire in 60 seconds
Tell us the asset, the amount and the timing. Soft search only — no impact on your credit score.
We get to know your business
A dedicated account manager picks up the phone, sense-checks your goals and gathers what we need.
We shop the market for you
We package the application, run it across 60+ specialist lenders and bring back the strongest no-obligation quotes.
Funded — usually in days
Accept the offer and sign electronically. Funds release direct to the supplier or to your account.
Finance lease vs operating lease.
Finance Lease
Pay (most of) the asset's value
Fixed monthly rentals over a primary term that pay down the bulk of the asset's value. At end of term you can extend at peppercorn rates, sell on the lender's behalf, or return.
- · Best for kit you'll use for the long-term
- · You take the residual value risk (and reward)
- · Highest tax efficiency for most SMEs
Operating Lease
Pay only the use, not the asset
Lower monthly rentals because the lender prices in a residual value. The lender keeps the asset at the end and resells it. You upgrade or walk away.
- · Best for cars, IT and rapidly-depreciating kit
- · Lender takes the residual value risk
- · Predictable lifecycle — refresh every 3–4 years
Three options when
the primary term ends.
Option 1
Continue renting
Stay on a peppercorn (secondary) rental — typically 1 month's rent per year — for as long as the asset's useful.
Option 2
Sell on the lender's behalf
Find a buyer, the lender takes a small admin fee and you usually retain 90–95% of the sale proceeds.
Option 3
Hand the asset back
Walk away cleanly at end of primary term. No final balloon, no settlement figure.
Boost cash flow
Fixed monthly rentals and VAT spread across the lease term — no big upfront VAT bill.
Enhance financial flexibility
Rentals are typically 100% deductible against company profits. Preserve existing credit lines.
Cost predictability
Lock in fixed competitive rates — accurate budgeting for the full primary term.
Safeguard your assets
Asset sits with the lender, not on your balance sheet. Keep business assets separate from personal wealth.
Finance lease, answered.
What's the difference between finance lease and hire purchase?
Hire purchase results in ownership at the end. Finance lease doesn't. With HP you pay VAT and a deposit upfront; with lease there's typically no deposit and VAT is spread across each rental. Lease rentals can be fully expensed; HP gives capital allowances on the asset.
Will I own the equipment at the end?
Not automatically. At the end of the primary term you can continue renting at peppercorn rates, sell the asset on the lender's behalf (and keep most of the proceeds), or hand it back.
What's an operating lease?
An operating lease has lower monthly rentals because the lender prices in a residual value they'll recover by selling the asset at the end. You return the kit and walk away. Best for cars, IT and any rapidly-depreciating asset.
Are lease rentals tax deductible?
Generally yes — for finance leases on assets used wholly for business, the entire rental can usually be deducted from profits before corporation tax. Speak to your accountant about your specific position.
How long are typical lease terms?
Between 24 and 84 months. We'll match the term to the useful life of the asset and your cash flow profile.
What about IFRS 16 / FRS 102 accounting?
Larger entities under IFRS 16 typically bring leases on-balance sheet as a right-of-use asset. SMEs reporting under FRS 102 Section 1A can often keep operating-style leases off-balance sheet. We can talk you through the practical impact.