An operating lease is particularly attractive to companies that continually update or replace equipment. An operating lease usually results in the lowest payment of any financing alternative.
A finance lease is a full-payout agreement that can not be cancelled, in which the lessee is responsible for maintenance, taxes and insurance. The term of a finance lease tends to be longer, often covering the useful life of the equipment.
Sale and Leaseback
Sale and leaseback allows a company to raise money from the sale of assets, while retaining use of them.
Maintenance Inclusive Agreements
This agreement provides your customer with ‘one monthly payment’ that incorporates the equipment cost as well as any maintenance/service fees over the period of the agreement
An ideal solution for businesses that have seasonal trading periods. This product allows customers to pay for equipment during more profitable months and have a break during the leaner months.
Invoice financing (also known as Factoring)
‘Factoring’ – also known as ‘debt factoring’ – usually involves an invoice financier managing your sales ledger and collecting money owed by your customers themselves. This means your customers will know you’re using invoice finance.
- When you raise an invoice, the invoice financier will buy the debt owed to you by your customer.
- They make a percentage of the cost (usually around 85%) available to you upfront.
- They then collect the full amount directly from your customer.
- Once they’ve received the money from your customer, they make the remaining balance available to you.
- You’ll have to pay them a discount charge (interest) and fees – the amount depends on which invoice financier you use.
View what we can finance here