Business finance from £10,000 to £2 million — any sector

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Asset & Equipment Finance

Lease Finance

Use the latest equipment for a fixed monthly rental, with flexible options at the end of the term to upgrade, extend or return.

Amount
£10,000 – £2m
Term
2–5 years
Decision
Within hours
Get a quote 020 8004 9727

What is lease finance?

Lease finance lets a business use equipment for a fixed monthly rental instead of buying it. At the end of the term you can usually return the asset, extend the lease or upgrade. Ownership normally stays with the funder, and rentals are typically treated as a business expense.

Last reviewed · PFC Commercial Finance

Key features

  • Operating and finance lease options
  • Rentals may be offset against taxable profits
  • Upgrade to newer kit at the end of term
  • Preserve your working capital

How it works

Tell us about your business and what you need. Your dedicated account manager compares lease finance options from across our lending panel, prepares the application on your behalf and presents a clear, no-obligation quote. There is no impact on your credit score until you choose to proceed.

Who is it for?

UK limited companies, partnerships and sole traders in almost every sector — from start-ups to established businesses, including those with a less-than-perfect credit history.

Lease Finance: common questions

What is the difference between a finance lease and an operating lease?

A finance lease covers most of the asset’s value over the term and you take on most of the risks of ownership. An operating lease covers only part of the value; the funder takes the residual-value risk, so rentals are often lower.

Are lease payments tax deductible?

Rental payments are usually treated as an operating cost and can be offset against taxable profits. The exact treatment depends on the lease type and your accounting — confirm with your accountant.

Is VAT charged on lease rentals?

Yes. VAT is added to each monthly rental rather than paid upfront, which helps cash flow. VAT-registered businesses can normally reclaim it.

What equipment is best suited to leasing?

Assets that lose value quickly or need regular upgrades — IT, telephony, medical and fitness equipment, vehicles and specialist technology.

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Figures are illustrative only and are not a quote or an offer of finance. Actual rates depend on your circumstances, the lender and the product. Finance is subject to status and available to UK businesses only.

Asset & Equipment Finance

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