For finance leasing a business typically sells property of machinery to a leasing company and then rents the assets back. At the end of the agreed period, your business is expected to buy back the assets at the agreed price.
- Securing finance leasing is often easier than obtaining a bank loan
- Being in a position to afford the latest machinery and equipment
- Having fixed costs because interest rates are fixed
- Length of trading history: six months
- Minimum turnover: 100,000 per annum
- Net assets: 50,000
- Lending range: £5,000 to £1 million