What is Leasing?

What is Leasing?

Purchasing assets for your business can be expensive. But if your business is to grow and succeed, such purchases are a necessity.

Whether it’s purchases new plant, office equipment, computers or even furniture, purchasing equipment for a business can have a major impact on cashflow or credit lines.

In the past, businesses traditionally spoke to the local Bank Manager and arranged for a business loan to purchase this equipment. Restricted lending and restrictive lending practices in Banks have made leasing the financing method preferred by all types of small and medium sized enterprises (SMEs) these days.

A finance lease is a contract under which the leasing company (lessor) purchases the business asset required by the customer (lessee). The lessee then commits to repay the capital cost of the equipment together with interest charges at a fixed rate over a fixed term (on a monthly/ quarterly/annual basis).

The lessor pays the cost of the asset and the associated VAT. The lessee pays VAT on the lease rentals payable and, provided the lessee is VAT registered, they can claim the VAT on the rentals back from Revenue.

SME Leasing and Finance Ltd. offer leasing arrangements on most business assets (see below) and offer low monthly payments and simple paperwork.

Obtaining equipment finance from us is straight forward, see our ‘Finance Process’ page for more details. Each application to us is individually assessed based upon your circumstances so we can best tailor a package to suit you. Give us a call or complete our Application form to find out more.