Operating Lease

Operating Lease is a common form of ‘off-balance sheet’ financing, it enables you to equip your business with a broad spectrum of high value assets or equipment through a rental agreement, reducing any of the attached risks of ownership and costs to your business.  

With an operating lease your monthly rental payments are based on the difference between the price of the asset at the start of the agreement and it’s projected residual value, plus any interest charges.  As you only repay a proportion of the asset’s value, you avoid a large initial outlay, reduce your monthly rental payments and instantly boost your business cash flow.

At the end of the lease you simply return the asset to the lender, alleviating any of your disposal and depreciation concerns.

Why choose Operating Lease?

  • Fixed monthly rental - you acquire the asset for immediate use
  • Low initial capital outlay 
  • Boosts your cashflow
  • Asset usage without resale or depreciation risk
  • Off Balance Sheet Funding - Operating lease acts purely as a business rental cost.
  • VAT on rental is reclaimable depending on your usage & VAT Registration. 
  • Flexibility at the end of the term to return the asset or extend the lease agreement.

For further information or to discuss how Chatsbrook can help you or your business please contact us here.