Finance Leasing Company
Lincoln Finance is a finance leasing company based in Penistone, Sheffield. We offer our services to businesses throughout the UK and specialise in vehicle and equipment finance solutions.
What is a Finance Lease?
A Finance Lease is a type of asset finance that allows businesses to use equipment or vehicles without owning them. The leasing company (lessor) purchases the asset and leases it to the business (lessee) for a fixed period in exchange for regular rental payments. At the end of the lease term, the lessee can continue using the asset by paying a secondary rental, upgrading to a new asset, or returning it to the lessor. Ownership remains with the leasing company throughout.
How does Finance Leasing work?
Features of a Finance Lease Agreement
- Fixed Lease Term: Agreements typically last between 12 and 84 months, depending on the asset and business requirements.
- Regular Rental Payments: The lessee makes fixed monthly payments, making budgeting easier.
- Ownership Stays with the Lessor: The leasing company retains ownership, meaning the asset does not appear on the lessee’s balance sheet as an owned asset.
- Optional End-of-Term Arrangements: The lessee can extend the lease, upgrade to new equipment, or return the asset.
- Maintenance Responsibility: The lessee usually maintains and insures the asset during the lease term.
- Tax Efficiency: Monthly payments may be tax-deductible as operating expenses, making them a tax-efficient option for businesses.
Advantages of Lease Financing
- Lower Upfront Costs: Businesses can acquire essential assets without large capital outlay.
- Preserve Cash Flow: Fixed monthly payments help manage cash flow effectively.
- Flexibility: At the end of the lease, businesses can upgrade to new equipment, extend the lease, or return the asset.
- Tax Advantages: Payments are often considered operating expenses, which may reduce taxable profits.
- No Ownership Risk: Since ownership remains with the lessor, businesses avoid depreciation risks and can upgrade to newer models when needed.
A finance lease is a practical solution for businesses that need access to high-value assets without committing to full ownership.
Tailored Asset Finance Solutions
Lincoln Finance’s tailored asset finance solutions for UK businesses and individuals. Explore our comprehensive services below, designed to deliver competitive, flexible funding options with expert support.
