Finance Lease

A finance lease gives your business use of an asset — vehicle, machinery, specialist equipment — over an agreed term, with fixed monthly payments, without purchasing it outright.

You do not own the asset. The lender does. But you operate it, maintain it, and assume responsibility for its residual value when the term ends. In exchange, your monthly payments are lower than hire purchase, and your capital stays in the business.

It is one of the most widely used forms of asset finance in the UK, particularly for high-value or specialist equipment where ownership is less important than access and cash flow management. This page explains how it works, what it costs, how it compares to hire purchase and contract hire, and what the recent accounting changes mean for your balance sheet.