What is a Finance Lease?
A finance lease is a credit agreement that allows businesses to acquire equipment without needing to purchase it outright. Instead of paying the full cost upfront, the business spreads the cost across manageable monthly payments over an agreed lease term.
Finance leasing is commonly used by limited companies looking to preserve working capital while still investing in essential equipment. By leasing equipment rather than purchasing it outright, businesses can maintain cash flow while continuing to grow and modernise their operations.
This approach is particularly common for high-value technology purchases such as 3D printers, robotics systems, and manufacturing equipment where businesses want access to the latest technology without tying up large amounts of capital.
How the Tax Advantages of Leasing Works – Quick Example
| Machine Cost | Lease Term | Monthly Repayments | Weekly Repayments | Total to Pay | 19% Tax Reclaimed | Net Cost |
| £5000 + VAT | 3 Years | £168 + VAT | £38.77 | £6,048 | £1,149.12 | £4,898.88* |
Ownership at the End of the Lease
With a finance lease, the equipment is rented for an agreed period while the lender retains ownership of the asset during the lease term. This means the equipment does not normally appear on the company balance sheet in the same way as a purchased asset.
At the end of the lease period, there are typically three options available:
- Pay a final amount to take ownership of the equipment
- Continue leasing the equipment at the same monthly cost
- Return the equipment to the lender and end the agreement
This flexibility allows businesses to choose the option that best suits their financial position and future plans, whether that is ownership, continued use, or upgrading to newer technology.
Daemon3DPrint works with Genesis Capital to provide flexible financing options for professional equipment. Genesis Capital specialises in funding technology investments across industries such as manufacturing, robotics, software, and engineering. Further details about available financing structures can be provided during your consultation.
Finance available for business purposes only, and not available to sole traders or partnerships below 4 or more members. Approvals and rates subject to end funder approvals and customer credit.
Genesis Capital and Daemon3DPrint are not tax advisers, for a full consultation on taxes and leases we would advise you to speak to your accountant.
