Operating Lease

Berkshire Finance specialises in providing residual-based leasing structures, often for assets where previously this type of lease was not available.

We arrange for the equipment's anticipated residual value at the end of the preferred term to be taken out of the equation, leaving rentals to be made based upon the remaining amount.

At the end of this term the client has the option to return the equipment without further liability, or spread the value at that time over a further year or two. Thereafter the client may keep the equipment ad-infinitum.

Benefits:

• exceptionally low rentals

• rentals are operating expenses, rather than capital expenditure

• fixed rentals are paid over the term, irrespective of interest rates

• hedge against future utilisation levels and changes in technology, as the client may return or upgrade assets should circumstances change

• liability may not appear on the client's balance sheet, thereby improving return on capital employed and gearing

• decreased corporation tax, as the entire monthly rentals are chargeable to profit & loss account (this is the only form of financing to achieve this level of tax credit)

• equipment and services may be sourced from multiple suppliers and included within one facility

• cash is retained for working capital, R&D, marketing or sales efforts

• existing credit lines remain intact