With operating lease, you're protected from the risk of an asset losing value or having to dispose of it when the agreement ends or the asset needs replacing.
Lombard will receive a rental from the you for use of the asset your business needs. Lombard retain the risks and rewards of the asset. As you're not paying for the item in full, your monthly payments will be lower.
If a qualifying vehicle is used for business purposes and you are VAT registered (special rules apply) you may be able to recover some of the VAT applied to the lease rentals. In specific businesses the lease rental VAT may be 100% recoverable.
Tax reliefs referred to are those applying under current legislation which may change. The availability and value of any tax reliefs will depend on your individual circumstances
Customers need to insure and maintain the asset. We can not say for definite whether a particular tax treatment will definitely apply. Contact us or see your contract terms for more details.
An operating lease lets you acquire high value or specialist equipment without the risk of it losing value or having the inconvenience of disposing of it. Rental of the asset is not for its full useful economic life, meaning that it has residual value at the end of the lease period. This will be estimated at the outset of the contract and the rentals you pay are priced according to the asset’s anticipated future value.
To discuss Operating lease in more detail you can contact one of our specialists who will be able to give you expert advice depending on your individual needs and tailor a funding plan to your business requirements.