Written or implied contract by which an owner of a specific asset grants a second party the right to its exclusive possession and use for a specific period of time and under specified conditions, in return for specified periodic rental or lease payments. A long-term written lease creates a leasehold interest, and is shown as a capital asset in a companies accounts. Advantages of leasing include lack of restrictive covenants (common in bank loans and bond indentures), conservation of capital, tax savings, avoidance of the risk of obsolescence, and relative ease of obtaining a lease as opposed to a comparable bank loan.

Hire Purchase

A system by which a buyer pays for assets in regular installments while enjoying the use of it. During the repayment period, ownership (title) of the item does not pass to the buyer. Upon the full payment of the agreements, the title passes to the buyer.

Commercial Loan

Loan advanced to a business instead of to a consumer. Commercial loans with Mercian Leasing can range from twelve months to sixty months. Unsecured and secured (backed by a collateral), and are often advanced for financing equipment, machinery, inventory or any other purpose required.


The number one reason for using invoice finance is to generate immediate funds, these can be used to pay for wages, suppliers, etc, and assisting cash flow. This could also allow you to ask for discount from suppliers for paying them early. Fast turnaround means funds are generally available 24 hours from receiving your sales invoice. Factoring will also free up your valuable time, so instead of debtors chasing for their money and you chasing customers for invoices to be paid, you can concentrate on your business.


Mercian Leasing is a trading name of Triumph Commercial Services Limited, an independent Credit Broker which is authorised and regulated by the Financial Conduct Authority (FCA). Permission No.641601.

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