Northern Asset Finance Limited, a wholly owned subsidiary of Northern Bank Limited, offers you the opportunity to acquire assets without the financial constraints of outright purchase. Although ownership of the assets never passes to you, the rentals are normally tax-deductible as a business expense. All leases are subject to VAT, which is generally recoverable by VAT-registered businesses.
Flexibility
In return for an agreed rental over a fixed period, a Finance Lease helps you acquire the assets you need. Depending on the nature and size of your business, a Finance Lease offers a number of advantages:
- Pre-arranged finance giving you the freedom and flexibility of a cash buyer
- Low initial outlay, with fixed repayments designed to preserve cash for working capital
- Flexible payment patterns to suit your business
- Fixed repayments help cash flow and budget planning
- VAT payable on rentals as opposed to one lump sum, normally recoverable if you are VAT-registered
- Capital allowance benefits reflected in rental payments
- Rentals generally allowable as a revenue expense
- Receipt of portion of the proceeds from the sale at the end of the period
- Possibility of lease extension
- Variety of funding options available