Our finance options
Medialease can offer many different finance options, the main five being:
- Finance Lease / Hire Purchase (Traditional ‘leasing’) – This allows you to purchase what you need, but with the equipment becoming yours at the end of the agreement (usually 36 months) via a simple £100 fee (HP) or via one further payment (FL). The future payment liability and the asset is usually on your balance sheet. VAT is payable all upfront (in the case of HP) or spread over the monthly repayments (FL) and re-claimed in each period in the normal manner.
- Lease Rental – This allows you to rent the equipment you need for a defined usage period (usually 1, 2 or even 3 years max.) for a much lower monthly payment than for Finance Lease (above). After the agreed amount of payments have been made, equipment can either be returned, or a further extension rental period can be agreed – for another 1,2 or maybe 3 years – and then you can own the kit outright or sell it.
- Operating Lease – Offers a different way to rent your kit. Medialease will underwrite a future value in the equipment, allowing your monthly payments to be calculated on a reduced amount (typically on 75% of the value, not 100%). Rented equipment is treated as revenue expense and the assets shouldn’t appear on your Balance Sheet in most circumstances, but the rental cost is charged directly to your profit and loss account.
- Re-Finance – Companies may have unencumbered assets (those owned outright/ex-leased assets) and the value of these assets could potentially be used to raise cash to purchase further assets or fund a significant deposit on new kit or settle other liabilities.
- Commercial Loan – A way of funding non-standard or non-tangible assets/software/support contracts/insurance premiums.
Brands also often have special leasing offers, presented through Medialease, only available through certain channels. So, if you’re still pondering over your next purchase and need some impartial advice on leasing, please email the team at Medialease or call 01327 872531.