What is a finance lease?

A finance lease is a type of commercial lease in which the legal owner of the asset — in this case, a tractor — rents the asset to the user of the tractor for an agreed-upon period. When a lessee enters into this agreement, they have full operating control of the asset. They will have responsibility and assume the risks and rewards that come with owning the asset. For accounting purposes, the lease gives the lessee the same economic characteristics as if they had full ownership of the tractor. The lessee will record the asset as a fixed asset on their balance sheet. In this situation, the lessee will record the interest of the lease payment as an expense. The lesser charges rent in exchange for lending the asset. The lessor retains ownership of the asset but the lessee gains exclusive use of the asset (providing they abide by the terms of the lease). The lessee is obliged to make rental payments that cover the original cost of the asset. There is an obligation to pay all of the fixed rental amounts, sometimes including a percentage of the purchase price of the vehicle at the end of the contract.

What is an operating lease?

An operating lease in contrast is the simplest form of equipment leasing, where the customer doesn't take on the risks and rewards that come with owning the asset (such as maintenance costs). An operating lease or contract hire is a way of renting an asset for your business over a short or medium time frame without taking on any risk. With an operating lease, you can get a tractor hire over a fixed term, with lower monthly payments and without the commitment of ownership.

We connect business owners to the right funding

For founders moving their business to the next level. For entrepreneurs negotiating a tough market. For leaders looking to adapt their strategy. We help business owners get the right finance in place, so they can trade, plan and grow with confidence.

Our story

Funding is the fuel companies need to grow, adapt and survive. But all too often, businesses can find it hard to secure the finance they need – there are too many confusing products, complex application forms and long waits.

When we started Funding Options in 2011, we wanted to transform the business finance market. We set out to make sure every business owner could make an informed choice, and have access to instant funding decisions.

Since then we’ve helped more than 15,000 businesses get the finance they need, quickly and easily. That adds up to over £0.7B in funding for businesses in the UK and the Netherlands.

Our leadership team

Experienced finance professionals, data specialists, technical trailblazers, creative experts and customer success champions – together, the team at Funding Options is revolutionising the world of business finance. As technology and the market continue to evolve, we’ll keep on pushing for more change, more innovation and more options - always with the business owner’s interests at the centre of everything we do.

Simon Cureton

Chief Executive Officer

Stuart Lawson

Chief Commercial Officer

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A common vision that isn’t so common: to help every business owner get the instant funding decision they need to trade, plan and grow with confidence. We’re getting there, fast. To join us, you’ll need to believe in the power of strong teams, bold ideas, and moving at pace.

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Our achievements

Ranked 29th in Business Cloud’s Top 100 Fintech Disrupters 2020.

Selected as part of the Fintech Power 50 2020.

Selected as part of SVC2UK’s 2020 cohort and announced as 1 of top 50 highest-growth startups in the UK.

Two-time winner of Nesta’s Open Up Challenge for Open Banking.

“Hottest Fintech” award finalist at the Europa’s 2020 and 2021.

Winners of £5 million grant from Pool D of the Capability and Innovation Fund.

Company Information:

Company name: Funding Options Limited
VAT Registration Number: GB 124 5365 28
Registered office address: 4th Floor The Featherstone Building, 66 City Road, London, England, EC1Y 2AL.
Information Commissioner's Office Reference: Z2992318
Company Registration Number: 7739337
Financial Conduct Authority Reference: 727867, 791902

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Disclaimer: Funding Options helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. We are also able to make insurance introductions. Funding Options will receive a commission or finder’s fee for effecting such finance and insurance introductions.

*Eligibility criteria apply - see Tide website for full details.

Funding Options Ltd is incorporated and registered in England and Wales with company number 07739337 and registered office at 4th Floor The Featherstone Building, 66 City Road, London, EC1Y 2AL.

© Funding Options Ltd · Authorised and Regulated by the Financial Conduct Authority · Reference Number 727867

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