Finance Lease Plans have fixed lease payments over an agreed period with a
predetermined residual value at term end.
When the final payment has been made
and the agreed period expired, the following options are available to the lessee:
| • |
Make an offer for the asset to the lessor for an amount no less than the
residual value. |
| • |
Re-lease the residual value for a further period (conditions apply). |
| • |
The asset is returned to the lessor who in turn sells the asset at market value
to recover the residual value and selling expenses. Any shortfall incurred is
the liability of the lessee.
|
| Key Advantages: |
| 1. |
Leasing conserves working capital, allowing the lessee to invest in business
development rather than tying it to fixed assets. |
| 2. |
Leasing allows business to obtain equipment not anticipated when completing
Capital Expenditure Budgets. |
| 3. |
Leasing is an additional source of credit (usually unsecured), thus freeing up
other lines of credit (bank or otherwise). |
| 4. |
Budget stability. A fixed monthly lease installment allows for more accurate
expense forecasting, as well as hedging against inflation. |
| 5. |
Lease payments are tax deductible. |
| 6. |
Fast and easy finance approval. |
| 7. |
Lease payment options are tailored to suit the cash flow requirements of a
business and ensure budget stability using fixed monthly, quarterly, half-yearly
or yearly rental payments. Alternatively, step payments may be lower or higher
in the beginning and increase/decrease over the lease term. |
| 8. |
Master Finance Lease Plans have all the above benefits and additionally provides
a facility to upgrade or add additional equipment (within a prescribed credit limit)
with ease, using single page schedules, subject to the terms and conditions of
the Master Lease Plan. |
|
|
