Operating Lease

Key features and benefits

• 100% finance available.
• Minimum term two years, maximum typically seven years, although longer funding periods can be considered.
• You are free to select your own supplier and negotiate as if it were a cash deal.
• Your repayments are calculated on the difference between the original cost and the expected value of the equipment at the end of the lease, which means typically your rentals are lower than for other forms of finance.
• Rentals can normally be treated as a revenue expense, avoiding the need to include within capital expenditure budgets.
• A properly structured operating lease would not normally need to be shown on your balance sheet.
• HSBC will claim the capital allowances and reflect the benefit in reduced rentals. You can normally offset the rentals against tax.
• At the end of the term you return the equipment to us. If you still need the asset you would normally be able to extend the agreement at a fair market rental.
• The type of assets we will offer operating lease for is limited. For more details on suitable assets contact us.