One of the most effective ways of acquiring new equipment. It is tax efficient, affordable, fixed and allows the customer to preserve cash within the business for more vital uses. It is widely used by most businesses as the preferred method of financing new equipment and growing their business.
The key aspect of a finance lease is that ownership of the equipment never passes to the customer. The full cost of lease rentals is deducted from taxable income, as a trading expense. When the primary lease period ends, you can either: