OPERATING LEASE
An Operating Lease allows the customer to benefit from using an asset
without having to purchase it. Repayments are relatively low as they
are based on the full capital cost less the anticipated value at the
end of the lease (residual value) plus interest. The asset is returned
to the financier at the end of the term.
FEATURES
BENEFITS
Use of the latest machinery
without ownership
Equipment does
not show on the balance sheet
No
residual value risk for customer · Payments
are based on a percentage of the original
capital cost
Hitachi Capital are
responsible for recovering the cost upon
resale of the asset
Low initial outlay to obtain
use of new assets
Improves key
ratios on company's balance sheet
Low
repayments enable customer to retain working
capital and increase cash flow
No
risk of depreciation or disposal concern
Total rental is allowable against tax
as a business
expense
