Whether you’re an established business or just starting out, Finance New Zealand can provide comprehensive tailored equipment lease solution to fit your business goals
- An equipment lease solution gives you the flexibility to add and upgrade equipment without accessing your capital.
- From a financial perspective it helps you manage variability in your operating expense budgets, and helps with debt covenant and balance sheet covenant management.
- From a risk perspective, the end-of-term risk is generally taken by the lessor, meaning your business doesn’t carry disposal risk and isn’t at risk of potential loss should the end of term market value of the equipment fall.
- From a day-to-day management perspective, you can benefit from the lessor’s buying power and fleet management capabilities.
How leasing works
Leasing is renting a piece of equipment for your business for a set period of time. Terms usually range between 12 and 96 months. Whilst the leasing company retains ownership of the equipment, you have exclusive use of the equipment for the agreed term of the equipment lease.
The benefits of an operating lease
- Efficient use of capital, allowing you to invest in core business operations
- There’s no obligation to purchase the equipment at the end of the lease
- Maintenance options can be included, providing you with certainty for the term of the lease
- Lease terms can be tailored to fit with your existing contracts, meaning you’re not at risk of owning mid-life assets at the end of a fixed term contract
- Monthly payments are typically lower than traditional loans, resulting in a lower impact on your cash flow
- Predictable monthly lease payments, allowing you to manage costs with certainty
- Operating leases are not reported on the balance sheet, which allows credit lines to be maintained and capital to be utilised in other parts of your business
- Lease payments are typically tax deductible
- Doesn’t interfere with existing banking relationships
- Fleet management by the leasing company is often an option
▼Fully maintained operating lease
A fully maintained operating lease is ideal for businesses wanting certainty of cost in relation to their leased equipment.
- Typically includes all scheduled servicing, maintenance and registration costs.
▼Non-maintained operating lease
A non-maintained operating lease works well for businesses that prefer a more hands-on approach with the maintenance of their equipment.
- You’re responsible for maintaining and servicing your leased equipment over the term of your lease.
▼Sale and leaseback
Finance New Zealand can provide a sale and leaseback solution, which ensures you retain more capital in your business. We can source a funder who will purchase your existing owned or financed equipment, then lease it back to you as either a fully maintained or a non-maintained operating lease. This option ensures capital is retained within your business.
A finance lease allows you to purchase the leased equipment at the end of the lease term. Finance New Zealand can source a finance lease solution from one of our providers, who’ll agree on the equipment’s residual value at the end of term.
To discuss the best leasing solution for your business, contact Finance New Zealand today.Contact