Oct 23

The Finance Maze – Operating Leases

Finance chattel mortgage, finance maze, it equipment, operating lease, rental product, small business tax break Comments Off

Moving on from consumer finance to small business and corporate finance, we’ll look at the example of purchasing IT equipment.  Rental or operating lease facilities are often ideal for these groups as they need to be up to date with technology to keep pace with their competitors.

Rental Products

The rental products available in the market allow the small business to lease (off balance sheet) IT equipment which will no doubt be out of date in 2 to 3 years time. This product allows the business “the use” of the current IT equipment and at the end of the finance term they just hand it back and upgrade to a more current product.  A fixed monthly payment is calculated at the time of purchase. Read More