FAQ
Buisness Finance Solutions: questions & answers
Questions Answered
There are many questions about leasing, here are the more frequently asked questions and answers.
What is a lease finance agreement?
Lease finance is where the lessor (finance company) purchases the equipment on behalf of the customer (the lessee) and for a fixed period of time the lessee agrees to make regular payments for the use of the equipment.
How do businesses benefit from Leasing?
By having a lease/asset finance agreement you will be able to retain valuable capital for more strategic uses. Lease finance agreements will help to build, maintain and grow your business without reducing your cash flow.
What are the tax benefits to businesses?
Lease Finance agreements are 100% allowable against pre tax profits
Do I need to pay a large deposit?
The simple answer is no. However, the more you pay as your first payment the cheaper the repayments will be. Most finance agreements are set up with either 1 or 3 monthly payments in advance.
What equipment can I put onto a Lease Finance agreement?
A lease/asset finance agreement can be used for all types of equipment as long as it is used solely for the business.
I have already paid for the equipment but now need to raise some cash flow
Not usually a problem as we can offer you a sale & lease back agreement. This is where you sell the equipment to a lessor and for a fixed period of time you agree to make regular payments for the continued use of the equipment.
Do I need to have perfect credit?
There are many factors that the underwriters take into consideration when approving a finance agreement, for example; what is the asset to be financed, how long have you been trading, what is the performance of your business.
Lease V Cash
Lease/Asset Finance agreements allow businesses to buy the latest technology when they need it rather than when they can afford it. With no large outlays equipment can be paid for over its useful working life. There is no effect on your existing bank credit lines.
Contact Details
Above are the answers to the most popular questions asked but if you have any other questions please do not hesitate to contact us on 08450601111 or 01212121114, alternatively you can email us info@lbf.uk.com.
