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Product Comparison
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Finance Lease
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Operating Lease
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Hire/Lease Purchase
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Triple Choice
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Ultimate ownership
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No
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Possible**
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Possible
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Rentals tax deductible
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Interest only
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Interest only
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Preserves working capital
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Off balance sheet*
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No
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No
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Possible
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Fixed term agreement
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Term can be extended
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No
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Possible
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Fixed or variable rate
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Possible
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No
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Customer can claim capital allowances
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No
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No
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Rental payment figure linked to future value of asset?
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No
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No
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VAT on payment reclaimable
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No
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No
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VAT on cost of asset reclaimable
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No
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No
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Agreement 'on demand'
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No
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No
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No
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No
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Additional security required
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Possible
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Possible
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Possible
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Possible
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Service and maintenance required
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Possible
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Possible
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No
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No
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* Classification as off balance sheet funding is subject to auditors approval;
** 'Planned rental' product only |
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