OP Lease
There are many benefits to using this facility to fund the acquisition of Vans, Trucks and Equipment. The Funder / Manufacturer takes the future value risk by retaining title to the goods, whilst the customer has the repair / servicing risk.
- VAT paid on the rentals thus improving cash flow in that you don't have to pay all of the VAT upfront
- Fixed Repayments making for easier budgeting
- Lower repayments as the provider assumes an asset value at the end of the term which they build into the deal
- Removes the risk to future value as the provider takes that risk
- Off balance Sheet Lending. This can improve the balance sheet and certain Accounting ratios which can be of importance to your Bank Manager.