With an advance rental, the capital cost of equipment is spread over a period of between 2-4 years. Leasing is of a fixed term nature. The fixed payments are agreed in advance, thus enabling efficient budgeting and a healthy cash flow.

If you borrow money from banks you will obviously be required to repay both principal and interest. But it is ONLY interest and not principal that can be fully deducted for tax purposes. With a Lease however, the total monthly payment which includes a combination of principal and interest, can be completely deducted as a trading expense thereby optimising Tax Efficient Expenditure.(This however does not apply to cars).

PLEASE NOTE THAT THE GOODS ARE AT RISK IF YOU DO NOT KEEP UP YOUR REPAYMENTS.