Asset Description

Banks and finance houses will provide lease financing against a wide variety of fixed assets. Because leasing companies will own the asset for the duration of the lease and because they will attempt to sell the asset if you or your company get into financial difficulties

Fixed assets are items which are intended to be kept in the business like computers, forklifts, or capital equipment. Most banks and leasing companies will not provide lease financing on current assets such as unsold inventory, raw materials or unfinished goods.

While almost any fixed assets can be leased, most leasing companies like assets which share certain common characteristics:

1. Identifiable - The lessor owns the asset but is allowing you to use it. As a result, he would like the asset to be clearly identifiable so he can repossess it if required.
   
   
2. Movable - Fixtures are not good security because the leasing company can not repossess them if you fail to make payments. Often, a leasing company will consider fixtures as part of a larger collection of assets or with some other form of security.
   
   
3. Durable - The leasing company will own the asset for the duration of the lease and would prefer if the asset they own has a high residual value. This provides them with greater security that they will be able to get their funds back by selling the asset if you are unable to make payments.
   
   
4. Saleable - In the event of default, the value of the assets can be realized.

Leasing companies often specialise in specific types of assets so someone who will finance farm equipment will not necessarily be able to finance computer hardware.

At 1st leasing, we have formed relationships with a broad cross-section of the banks and independent leasing companies to provide you with a comprehensive place to find lease and equipment finance. Click here to get leasing quotes today.