Interest is only paid on the amount of money used in an overdraft and the facility is only used if required – so they provide flexibility. Similarly, with invoice finance, the equivalent of interest is only payable on the amount drawn down.
There is tax relief on interest payments.
Leasing gives a business access to the equipment they need without incurring the cash disadvantage of an outright purchase.
Leasing is a flexible form of finance for all types of assets because the loans are secured wholly or largely on the asset being financed.
Access to the right kind of finance at every stage in your growth journey enables businesses like yours to invest, grow and create jobs. That’s why the British Business Bank and ICAEW’s Corporate Finance Faculty, and partner organisations representing finance and business, have created the business finance guide.