What Does Leasing Finance Cost?
There are many factors that determine the cost of equipment leasing finance, here are some of the considerations.
It is difficult to calculate a generic figure because each type of lease finance agreement is different. However, if you do plan to use equipment leasing finance here are five factors which can affect the total payment made over the time your lease agreement runs:-
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Interest and finance charges
Clearly, these will increase the amount you repay over the period of the lease to more than the item is actually worth and more than you would pay if you bought it in cash out right. However there are valuable offsetting benefits, not least the tax advantages. Find out more about the benefits of equipment finance.
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Residual values
If you wish to buy the asset at the end of the finance lease make sure you know what percentage of the cost you are likely to have to pay since it may vary between lessors as well as for different items leased.
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Deposit paid
Unless you are negotiating a balloon lease, paying a larger deposit could mean equipment leasing finance will cost less in the long run. This is because you will be paying interest against a smaller proportion of the purchase price, your monthly payments will therefore be smaller and the cost of interest payments should be less, too.
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Credit rating
The terms of the lease available to you will depend on your credit track record.
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Business / Industry
Some industries or types of business may enjoy more flexibility and better credit ratings than others, for instance professional practices or local authorities.
The typical monthly costs of a finance lease can be calculated with this equipment leasing calculator. Note this is an illustration only and not an equipment leasing quote.
For a no obligation equipment leasing quote contact us on-line here or call 01223 211 613.
The actual cost of equipment finance vary from company to company and asset to asset. We are able to offer assistance from both prime and sub-prime asset finance lenders.
- When does the equipment supplier get paid?
- Can leasing finance be paid off early?
- How quickly can equipment finance be arranged?
- Can used equipment be leased?
- Can equipment be leased from more than one supplier?
- Are monthly leasing payments fixed?
- Can I change my mind after signing a leasing contract?
- Who is responsible for maintenance of the equipment?
- What if my equipment is damaged or stolen?
- What happens at the end of the lease period?
As "equipment leasing brokers" we have successfully arranged the funding of many asset deals for our business clients in the past. Here are just a few leasing case studies that you may find of interest [more details].