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Financial lease

Financial lease allows you to acquire an asset over time rather than having to pay for it upfront. Lease payments consist of interest and depreciation, which means you can benefit from applicable depreciation and interest tax facilities.

Equipment under financial lease is carried as an asset on your balance sheet. Lease rates are calculated over an agreed term and you will make fixed monthly payments during this entire period. At the end of the term, we will have recovered the cost of purchasing the asset and you will be the legal owner of the asset.

 

The advantages of financial lease:

  • You are the economic owner of the asset, so asset depreciation will be on your balance sheet
  • Tax deductible interest
  • At the end of the lease period you will be the legal owner of the asset
  • You are the economic owner of the asset so asset depreciation will be on your balance sheet
  • Tax deductible interest
  • At the end of the lease period you will be the legal owner of the asset