Key Details
OwnershipLender until end of term
TaxFull payment deductible
Balance SheetOff-balance-sheet
End of TermBuy, re-lease or upgrade
Best ForBusinesses that upgrade often
Common Questions
A finance lease may be preferable when you want off-balance-sheet treatment, when you prefer to upgrade trailers regularly at end of term, or when your accountant advises that deducting the full lease payment is more tax-effective than depreciation.
You can purchase the trailer at the agreed residual value, return it to the lender, or re-lease on new terms. Your broker will advise on what suits your plans.
Yes. Under a finance lease, the full lease payment is generally deductible as an operating expense. Your accountant should confirm the treatment for your specific business structure.