Funding solutions explained Financing with Van Buddy We offer a number of tailored finance packages working with all the major banks and lenders in Ireland. Apply for Finance

Finance Options with Van Buddy

We offer a number of tailored finance packages working with all the major banks and lenders in Ireland.

FINANCE LEASE

A finance lease, is a type of asset finance where a company (the lessee) leases an asset from a finance provider (the lessor), effectively taking on most of the ownership risks and rewards for the asset's life. The finance provider purchases the asset and leases it to the lessee, who then makes regular payments to the provider over the lease term. The lessee will own the asset after the term and final payment

Key Features of a Finance Lease:

Ownership:

The lessee (company) does not own the asset initially, but they gain ownership or a purchase option at the end of the lease term.Payments:

The lessee makes regular payments to the lessor, which include both the cost of the asset and the interest or finance charge.

Responsibility:

The lessee is responsible for insuring and maintaining the asset during the lease term.

Accounting:

For accounting purposes, a finance lease is treated as if the lessee owns the asset, and the asset is included on their balance sheet as a liability.

Flexibility:

Finance leases offer flexibility in how the asset is used, allowing the lessee to replace the asset with a newer model or use the freed-up cash flow for other business needs.
Tax benefits:

Depending on the nature of the lease agreement, there may be tax benefits associated with finance leases. Best to speak to your accountant for further information.