A Finance Lease gives your business full access to the equipment it needs - without the upfront capital outlay of a purchase. This structure is ideal for businesses that want long-term use of an asset with the option to acquire it at the end of the lease, all while keeping cash flow steady and tax benefits intact.
Whether you’re upgrading plant, expanding your fleet, or sourcing machinery for a long-term project, a Finance Lease provides a simple, cost-effective path to equipment acquisition.
What is a Finance Lease?
A Finance Lease is a commercial leasing arrangement where the lender (lessor) purchases the asset and leases it to your business for a fixed term. You make regular rental payments over the lease term, and at the end, you can acquire the asset for a predetermined residual value.
Unlike an Operating Lease, a Finance Lease is recorded on your balance sheet, as both an asset and a liability. It’s a good option for businesses planning to own the equipment but wanting to preserve upfront capital.
Why Choose a Finance Lease?
- Full access to the equipment without paying upfront
- Fixed payments over the lease term
- Preserves working capital for other business needs
- Tax-deductible lease payments (check with your accountant)
- Residual (balloon) amount reduces monthly outgoings
- Equipment ownership option at lease end
Finance Leases are commonly used for high-value trucks, trailers, excavators, cranes, access gear, and other machinery where long-term use and eventual ownership make sense.
Who Is It For?
- Established businesses planning to own the asset eventually
- Operators who want fixed costs and predictable terms
- Clients with balance sheet capacity who want to spread equipment cost
- Companies purchasing income-generating assets with high resale value
This lease type suits transport operators, fleet managers, contractors, and any business with a long-term need for a specific asset but wanting flexibility over when and how to take ownership.
How It Works
- You choose the equipment and the lease term (typically 2 - 5 years)
- We purchase the asset and lease it to you
- You make fixed lease payments over the agreed term
- At the end of the lease, you can:
- Pay the agreed residual and take ownership
- Refinance the balloon and continue leasing
- Trade in or upgrade to a newer asset
Because the residual value is agreed upfront, you’ll know exactly what it costs to take ownership - making cash flow forecasting simple and transparent.
Why Mako?
At Mako, we help businesses structure Finance Leases that suit their tax planning, cash flow, and equipment lifecycle needs. Whether it’s a single unit or a fleet of assets, our experience across construction, transport, agriculture, and civil ensures we find the right solution fast - without the red tape.
Want to explore a Finance Lease for your next asset?
Contact our team today for fast approvals, flexible terms, and competitive lease solutions.
