Why Finance Lease
Finance lease differs from Rental in three key areas. 1.Cost of equipment remains a capital cost, it is on balance sheet. 2.There is no real upgrade flexibility, to replace the equipment involves the pay-out of one transaction and the commencement of a second transaction. 3.The residual value of the equipment at the end of the term is agreed at the commencement of the transaction. In all other aspects Finance Lease is the same as Rental.
|