“Leasing is a contractual agreement where a leasing company (lessor) makes an asset it owns available for use by another party (a lessee), for a certain period of time and in exchange for payment.”

The Use of Leasing Amongst European SMEs Executive Summary, Oxford Economics

Leasing is a form of finance used throughout the world by governments, businesses and people, to finance a wide variety of different activities. Leasing can help pay for equipment (see below), vehicles, property, and more.

What is equipment leasing?

Equipment leasing is a vital tool for all businesses – not just catering – looking to grow and finance equipment, especially when the current UK recovery is so fragile. It allows you to agree a fixed term contract with which you can lease brand new equipment without a big outlay in Capital Expenditure (CAPEX), instead paying for your equipment with tax-deductible Operational Expenditure (OPEX).

Equipment leasing contracts are typically marked by a securing of the agreement against the catering equipment alone, and with regular fixed-amount payments which do not affect other credit lines or banking relationships. Repayments are designed to be taken over the useful life of the equipment.

Leasing is ideal for equipment which primarily increases revenue or reduces costs, meaning an immediate return on investment (ROI).