Leading asset based finance provider, Close Brothers Commercial Finance, adds operating lease to their suite of products.
This is welcome news for many firms looking for new ways to fund their operations. According to the Close Brothers Business Barometer, a quarterly survey that canvasses the opinion of MDs and company owners on a range of subjects, almost a third of Irish businesses plan to expand between now and 2016.
Adrian Madden, Head of Sales, asset finance, from Close Brothers Commercial Finance explains more: “We’re really excited to now offer operating lease as a finance option. It allows a company the full use of an asset, such as a commercial vehicle/plant and machinery/tractor or trailer, without having to purchase it themselves.
“Operating lease is a rental agreement between Close Brothers, the customer and a preferred third party supplier and the lease period is for a fraction of the asset’s useful life, typically between one to five years.
“It therefore means the customer pays Close Brothers directly for the use of the asset over the term agreed and is also responsible for its maintenance and insurance.
“At the end of the lease term, the asset is returned to, and disposed by, the third party supplier, who will also recover the residual value the agreement was based upon.”
Other products on offer from Close Brothers include hire purchase, refinancing of existing assets and invoice finance.
Mr Madden continued: “There are a number of benefits to using this type of finance. For one thing it’s really flexible as there is the opportunity to re-rent or enter an agreement with the third party supplier to purchase or return the asset at the end of the period.
“Further to the findings from our research, now is an ideal time for companies to revisit their finances and consider products such as operating lease to ensure they are well placed to grasp opportunities that present themselves.”
