Table of Contents

1. Key Takeaways
   
2. What Is a Finance Lease?
   
3. What Can I Get With Finance Lease?
   
4. How Does a Finance Lease Work?
   
5. Why Small Business Owners Love Finance Leases
   
6. Finance Lease vs. Operating Lease: What’s the Difference?
   
7. Pros and Cons of Finance Leases
   
8. Is a Finance Lease Right for Your Business?
   
9. How to Get a Finance Lease Step-by-Step
   
10. When a Finance Lease Is a Smart Move
    
11. Final Thoughts
    
12. Frequently Asked Questions
    

Key Takeaways

• A finance lease lets you use equipment without buying it right away.
  
• You pay monthly, and at the end, you can buy the item, extend the lease, or return it.
  
• It’s great for saving money, getting what you need, and keeping your business running smoothly.
  
• You don’t own the equipment until you pay it off or buy it later.
  
• It can be used for vehicles, machines, tools, and even computers.

Imagine you run a small restaurant in your neighborhood. Things are going pretty well—people love your food, and orders keep coming in. But there’s one big problem. You’re spending too much money using food delivery apps to get meals to your customers. Those app fees are eating into your profits.

One day, you have a great idea: what if you started your own delivery service? Maybe just four motorbikes to begin with. That way, you can deliver food yourself, save money on app fees, and even get orders to people faster.

There’s just one problem. Buying four motorbikes all at once costs a lot of money. Even though your business is doing okay, you don’t have enough saved up to buy them now. You’d have to wait for months, maybe longer, and that means losing more money every week.

But here’s where a finance lease can really help.

With a finance lease, you don’t need to pay for the motorbikes all at once. You can just lease them, use them right away, and pay for them slowly over time because you will have the option to buy them after the term, which depends on what’s good for your business. It’s a way to grow your business faster, without putting your cash flow in danger.

Whether it’s motorbikes, ovens, computers, or tools, finance leasing helps small business owners get what they need today, not months from now.

What Is a Finance Lease?

A finance lease is like borrowing a big toy for your business, but instead of returning it right away, you use it for a long time. You make monthly payments, and when the time is up, you can buy it, keep leasing it, or give it back.

So, if you run a bakery and need a $2,000 oven, but don’t want to spend all that money at once, a finance lease helps you get it now and pay over time.

What Can I Get with a Finance Lease?

For example, if you run a bakery, you can lease ovens, mixers, and refrigerators. If you have a construction business, you can lease heavy machinery like bulldozers, trucks, or cement mixers. Office-based businesses can lease things like computers, printers, desks, and even phone systems. You can also lease delivery vans, forklifts, point-of-sale systems, or even solar panels for your building. The cool part is that if it helps your business work better and it costs a lot, chances are, you can lease it! Just make sure the item is something your business will use often and for a long time.

How Does a Finance Lease Work?

Let’s break it down:

1. Pick what you need – Maybe it’s a truck, printer, or cash register.
   
2. Find a leasing company – They buy it for you.
   
3. Sign a lease agreement – This says how long you’ll lease it and how much you’ll pay each month.
   
4. Use it like it’s yours – You do the maintenance and keep it in good shape.
   
5. End of lease options – When the lease is done, you can:
   
   • Buy it for a small fee
     
   • Keep leasing it
     
   • Return it
     

That’s it! No giant loans or saving for years to buy it.

Why Small Business Owners Love Finance Leases

1. You Keep Your Cash

You don’t have to spend all your money upfront. That means more money for marketing, hiring, or paying rent.

2. Easy Budgeting

Since you pay the same amount each month, it’s easy to plan your money.

3. You Can Grow Faster

Need more equipment to grow your business? A finance lease lets you do that right now instead of waiting.

4. Stay Up-To-Date

Technology changes fast! Leasing helps you get the latest tools without buying outdated stuff.

Finance Lease vs. Operating Lease: What’s the Difference?

Here’s a quick look:

So, if you want to own it later, go with a finance lease. If you just need something for now, try an operating lease.

Pros and Cons of Finance Leases

✅ Pros

• Get stuff you need without huge costs
  
• Monthly payments make it easier to budget
  
• Can own the equipment at the end
  
• You get tax breaks
  
• You use the equipment like it’s yours
  

❌ Cons

• You don’t own it until the end
  
• If you stop the lease early, there might be fees
  
• You pay for repairs and upkeep
  
• It’s a long-term deal, not easy to change
  

Is a Finance Lease Right for Your Business?

Consider a finance lease if:

• You need essential equipment but want to avoid large upfront costs.
  
• You prefer predictable monthly expenses.​
  
• You plan to use the equipment long-term and may want to own it eventually.​
  

How to Get a Finance Lease Step-by-Step

1. Figure out what you need – Know the equipment and how much it costs.
   
2. Shop around for a leasing company – Look for good deals.
   
3. Apply – Share info about your business, like how much money you make.
   
4. Get approved – This can take a day or two.
   
5. Sign the lease – Make sure you understand the terms.
   
6. Start using the equipment – It’s all yours to work with!
   
7. Make payments on time – Keep your business in good standing.
   

Tip: Check out MacManus Asset Finance for tailored financial solutions that help small business owners like you!

When a Finance Lease Is a Smart Move

It’s a great choice if:

• You need big equipment but don’t want a big bill
  
• You want to own it eventually
  
• You use the equipment a lot and want to take care of it yourself
  
• Your business is growing fast, and you need tools now

It’s perfect when you want to own the equipment later, but you’d rather make smaller monthly payments now. It also works great if you use the equipment every day and want to take care of it yourself. Many small business owners pick a finance lease when their business is growing fast and they need tools, vehicles, or machines right away. Instead of waiting to save up money or getting a big loan, you can get what you need now and pay over time. Plus, the monthly costs are usually the same each month, which makes it easy to plan your budget. At the end of the lease, you can choose to buy the item, return it, or keep leasing it—whatever works best for your business.

Final Thoughts:
A finance lease is a simple way to grow your business without breaking the bank. You can get what you need today, pay over time, and even own it later. It’s smart, simple, and made for small business owners like you.

Want to learn more or get started? Head over to multi-awarded MacManus Asset Finance and let us help you build your business the smart way.

Frequently Asked Questions

Q: Do I own the equipment in a finance lease?
No. You can buy it later if you want.

Q: Can I end the lease early?
Yes, but you may have to pay a fee.

Q: Who pays for repairs?
You do.

Q: Are payments tax-deductible?
Usually, yes. Ask your tax pro.

Q: What if the equipment breaks?
You’re responsible for fixing it.

Q: Is a finance lease better than a loan?
It depends. A lease is easier to get and manage.

Q: What happens after the lease ends?
You can buy, return, or extend the lease.

Q: Can I get a lease with bad credit?
Sometimes, but it might cost more.

Q: Do I need to put money down?
Not always. Some leases have zero down payment.Q: How long is a finance lease?
Usually 2 to 5 years.