The practical answer
The structure involves a sale to the finance provider and continued use under a lease, so ownership changes even though the asset remains in the business.
Review rentals, permitted use, insurance, end-of-term arrangements and any sale proceeds provisions. Do not confuse continued physical possession with retaining legal ownership.
Ask the accountant about the transaction’s VAT and accounting treatment and obtain advice on uncertain terms. Cash release needs to be weighed against the new contractual commitment and ownership position.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: Asset refinance →Explore the relevant guides
Private-sale asset finance — For seller, ownership and payment checks.