Open-Ended Finance Lease

Flexible finance lease with a choice at the end of the agreement.
Flexible finance lease with a choice at the end of the agreement.
TypeFinance Lease
StructureOpen-ended

Key Benefits

  • Option to acquire the asset at the end of the agreement
  • An invoice is issued for each lease instalment
  • VAT is charged only on the principal

An open-ended finance lease gives you the choice to pay the residual value of the leased asset and acquire ownership of it, or to waive that right and leave the asset in the ownership of the leasing company. With this type of lease, each lease instalment paid by the customer is invoiced for the principal, interest and VAT charged only on the principal. The customer can decide whether to pay the residual value and acquire the asset or waive that right.