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Operating Lease
The operating lease is designed to meet accounting standards to qualify for off-balance sheet treatment. Achieving this depends on the type of equipment being leased, the lease term and the customer’s own determination. Because the pricing includes a residual investment by Key Equipment Finance, the rental payments tend to be lower than is typically the case with finance leases, which are usually based upon the full (or near full) capital cost.
Finance Lease
Under a finance lease most of the risks and rewards of ownership are deemed to reside with lessee. Typically there is little or no residual investment, hence the rental payments are based on the full or almost full capital cost of the equipment.
Hire Purchase
With hire purchase, the title is transferred to the lessee at the end of the primary term for a nominal sum. The lease payments will be based upon the full capital cost. However, since the lessee takes title to the asset, capital allowances are available. This option is best suited to customers wanting to finance the purchase of equipment over time.
Contact Us
To find out more about which alternative products are available, please contact us, and we will create a solution tailored to your business needs.
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