BARUCH CAPITAL - FINANCE LEASE

Finance Leases enable you to lease Baruch vehicles without making a capital outlay that impacts upon your cash flow and balance sheet, allowing you to dedicate your financial resources to your core business.

It means that vehicles are hired to you for a fixed period without the option of ownership, and at the end of the primary period you may choose to continue to rent the asset for a further period at a nominal rate or to act as an agent in its disposal. This means you have the option to sell the vehicle on Baruch Capital’s behalf and keep the majority of the proceeds.



Furthermore, for Finance Leases of five years or less, as Baruch Capital remains the owner of the asset, they claim the writing down allowance and the benefit is passed to you in your rental payments. Your cash flow is eased still further because you pay VAT on the monthly repayments, not on the principal purchase cost. In addition, you claim tax relief on the rental based on the finance charge and depreciation charge through your profit and loss account.

Key Features and Benefits

- Low initial capital outlay

- Flexible and tax efficient vehicle funding

- Improved cash flow

- Option to extend the term

- At the end of the lease agreement you can sell the asset and retain most of the sales proceeds

- VAT payable on the rentals and not the purchase cost of the asset

- Rentals allowable against the taxable profits.