A Finance Lease is a rental agreement where we arrange the purchase of the business equipment, truck, excavator or vehicle etc for you via a lender. Then you rent it from the lender at fixed monthly repayment over an agreed period. You might have also heard it called a lease or equipment lease.
There is always a residual value at the end of the term, and most financiers will allow you to release the asset at the end or they will offer to sell the equipment to the client for the residual amount. The equipment must be used predominately for business use, terms generally range from 12 to 60 months, and the interest rate is fixed for the term.