 Regulation
The Finance and Leasing Association have many member leasing companies, they help to enforce good practice across the industry. Their website is available at www.fla.org.uk/.
The general regulators for financial services are the Financial Services Authority, who help to promote and ensure fairness and good practice. Their website is available at www.fsa.gov.uk/.
Summary
Leasing allows you to spread the cost of expensive equipment over a number of years, allowing better cash flow planning and budgeting. However, it costs more in the long run, and means you do not own the product.
At the end of the lease you can carry on paying a much smaller monthly charge (Peppercorn rental) for the product, or you can sell it on behalf of the leasing company, and retain some of the money paid.
Leasing has some tax advantages over buying outright, although these vary depending on the product and cost.
Little or no additional security is required for leasing, as the equipment itself is the security.
Almost every type of business equipment can be leased, if you cannot find a product you need, ask the leasing company and they may locate it specifically for you.
If you lease an item, you are responsible for its maintenance unless specifically arranged otherwise.
Operating leases allow you to use equipment without needing to commit to pay its entire cost. This is particularly beneficial if you upgrade regularly or only need a product for a limited time.
Asset finance (Often known as Sale and Leaseback) allows you to raise cash on existing equipment and lease it back. This can help cash flow problems, however not all asset finance agreements return ownership of the product to you at the end of the lease.
Leasing Companies
HSBC – Offer leasing and asset loan (asset finance where you keep ownership after the lease ends).
Finexia - Search finance companies for leasing, vehicle leasing, and asset finance.
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