For Accountants & Auditors:
Empower Your Clients, Enhance Your Practice

Lease Rater is built to support — not disrupt — your professional relationships. Choose the engagement model that works best for you and your clients.

Lease Rater is designed to complement and enhance your professional services, not replace them. We recognize that accountants and auditors are essential partners in ensuring FRS 102 compliance, and we've built Lease Rater to support your practice in whatever way works best for you.

You maintain full control over how you engage: recommend Lease Rater as a resource your clients can use independently (with you reviewing the outputs), or deliver OBR calculations yourself as a value-added service (with or without white-label branding).

Both models preserve your independence, strengthen client relationships, and save time. Many firms use both approaches depending on client sophistication and engagement scope.

Two Engagement Models: You Choose

Whether you prefer to advise or deliver, Lease Rater adapts to your practice style. Many firms use both approaches depending on client needs.

Model 1: Recommend Lease Rater (Client Uses, You Review)

Your role: Trusted advisor who guides clients to credible, third-party OBR calculations.

How it works: 1. You advise your client to use Lease Rater for their OBR needs 2. Client inputs their lease details and financial data directly into Lease Rater 3. Client receives a professional PDF report with methodology, assumptions, and entity-specific OBR 4. You review the output as part of your normal audit, assurance, or advisory work 5. Client pays Lease Rater directly (£49–£99 per OBR)

Benefits for you:

  • Independence maintained: You're not calculating the rate yourself, reducing self-review risk
  • Time saved: No need to build bespoke OBR studies from scratch
  • Audit-ready documentation: Reports are designed for your review process with clear methodology and assumptions
  • Repeatable quality: Every client gets the same rigorous, market-anchored approach


Benefits for your client:

  • Fast turnaround: 2-minute calculations instead of waiting weeks for your capacity
  • Cost-effective: Fraction of the cost vs. bespoke consulting studies
  • Self-service: Empowers clients to handle straightforward leases independently
  • Professional output: Audit-quality documentation they can file with confidence


When to use this model:

  • Smaller clients who need speed and simplicity
  • Clients with standard leases (vehicles, equipment and normal property)
  • When you want to maintain auditor independence
  • When client capacity is limited and DIY tools don't add value

Model 2: Service Provider Model (You Deliver OBRs)

Your role: Service provider who uses Lease Rater as a calculation engine to deliver OBRs to clients (with or without white-label branding).

How it works: 1. Client engages you for OBR calculation services 2. You use Lease Rater behind the scenes to generate entity-specific rates (optionally white-labeled) 3. You review and validate the outputs, applying your professional judgment 4. You deliver the OBR report to your client as part of your engagement 5. Client pays you for the service (your fee structure)

Benefits for you:

  • Scalable delivery: Process multiple OBRs quickly without hiring specialized staff
  • Professional branding: White-label option allows you to deliver under your firm's brand
  • Higher margins: Use Lease Rater's infrastructure to deliver advisory work efficiently
  • Quality control: Consistent methodology across all clients reduces review time


Benefits for your client:

  • Trusted relationship: Receives OBR from their existing advisor (you)
  • Integrated service: OBR calculation bundled with your audit/advisory work
  • Professional oversight: Your judgment and validation adds extra assurance
  • Simplified engagement: One point of contact (you) for all FRS 102 needs


When to use this model:

  • Larger clients expecting full-service advisory, enhanced documentation or have a high volume of leases
  • When you want to capture revenue for OBR work
  • When client prefers single-source engagement

White-label options: - Lease Rater can provide reports under your firm's branding - Contact us to discuss bulk licensing and white-label terms - Maintain your client relationship with our calculation engine

Current Scope

Current scope: Lease Rater handles standard property, vehicle, and equipment leases where obtaining a credible discount rate is the main compliance challenge. For highly structured or unusual transactions, please use your professional expertise. Lease Rater supports you by providing a robust rate calculation for straightforward cases.

At this time Lease Rater does not support sale-leasebacks or highly complex lease structures, but we plan to review additional features based on accountant feedback.

No Wrong Choice

Both models are legitimate, widely used and professionally sound. Your choice depends on:

  • Client sophistication: Can they handle inputs themselves, or do they need your guidance?
  • Engagement scope: Are you doing audit-only, or full advisory?
  • Independence considerations: Do you need third-party separation for audit purposes?
  • Fee structure: Do you want to capture revenue, or provide lighter-touch guidance?

Many firms use BOTH models: - Recommend Model for smaller, straightforward clients - Service Provider Model for larger, complex engagements

There's no conflict in using both approaches across your client portfolio. Lease Rater adapts to your practice needs.

Professional FAQs

Audit Trail & Methodology Verification

Can I verify the SONIA data used in calculations?

Yes. Every Lease Rater report includes SONIA metadata showing: - SONIA curve date: The term structure used (currently updated quarterly) - Term-matched rate: The SONIA-equivalent rate corresponding to the lease term - Source: Risk-free rate curve from SONIA OIS rates (1-10yr) and UK gilt yields (11-30yr), updated quarterly; daily API integration planned for Q1 2026 - Interpolation: Linear for non-standard terms, gilt proxy beyond 10 years

For terms above 10 years, rates are estimated from UK gilt yields adjusted to SONIA-equivalent basis. Auditors can cross-check the curve against the published SONIA OIS curve and UK DMO gilt structure for the curve date shown in the report.

Understanding the Methodology

How does Lease Rater build entity-specific OBRs?

Lease Rater uses a 4-pillar spread framework on top of the risk-free base (SONIA), weighted by predictive power:

1. Financial Health (45% weight - Dominant Pillar)

Why 45%? Financial strength is the most predictive of default risk in UK SME lending. This pillar receives highest weight to reflect credit reality.

14 Industry-Standard Metrics: - Profitability (3 metrics): EBITDA margin, EBIT margin, Return on Equity (ROE) - Liquidity (3 metrics): Current ratio, quick ratio, cash ratio - Leverage (3 metrics): Total Debt/TNW, Total Debt/EBITDA, Net Debt/EBITDA - Coverage (2 metrics): Interest coverage ratio (ICR), fixed charge coverage (FCC) - Cash Flow (2 metrics): Free cash flow (FCF), FCF/total debt ratio - Balance Sheet (1 metric): Cash buffer (cash/total debt)

Risk Band Classification: Each metric scored using 6 bands: Excellent, Strong, Satisfactory, Fair, Weak, Vulnerable. Bands aligned to UK SME lending thresholds.

Estimation Logic: - Tax paid: Estimated at 19% of EBIT if not provided (UK corporation tax rate) - Capex: Estimated from depreciation (preferred) or 3% of revenue (fallback) if not provided - Flags shown: PDF report clearly marks "(Tax estimated)" and "(Capex estimated)" for transparency

2. Security/Structure (30% weight - Loss Mitigation)

Why 30%? Second most important factor after financials. Strong security dramatically reduces loss-given-default.

6 Components: - Security type (unsecured vs floating charge vs fixed charge over asset) - Residual/balloon percentage (structural risk from deferred payments) - Payment profile (advance vs arrears - timing risk) - Rent deposit months (property leases - security cushion) - Years trading (credit maturity - start-ups face higher spreads) - External credit rating (A/BBB/BB/B/CCC/NR - most SMEs are NR)

3. Sector & Size (15% weight - External Context)

Why 15%? Contextual factors beyond company control. Lower weight but still material.

2 Components: - Sector overlay: Industry-specific risk premiums (60+ UK sectors catalogued - hospitality, construction higher risk; professional services, tech lower risk) - Size overlay: Company scale (micro/small/medium/large - smaller companies face higher spreads due to concentration risk)

4. Exposure (10% weight - Concentration Risk)

Why 10%? Supplementary to financial metrics. Adds concentration lens.

3 Ratios: - Loan-to-EBITDA (facility as % of cash generation) - Facility-to-Revenue (facility as % of top-line) - Facility-to-TNW (facility as % of equity cushion)

Transparent calibration: - Each pillar contributes a spread component (measured in basis points) - Financial pillar: Sum of 14 metric BPS values + special penalties (insolvency, thin capitalization) - Security/Structure: Sum of 6 component BPS values - Sector/Size: Sum of 2 overlay BPS values - Exposure: Mean of 3 ratio BPS values - Total spread = (Financial × 0.45) + (Security × 0.30) + (Sector/Size × 0.15) + (Exposure × 0.10) - OBR = SONIA (term-matched) + Total Spread - All assumptions and band thresholds disclosed in the PDF report

Not a black box: - You can see exactly how the OBR was built - Every metric shows its risk band classification (e.g., "ICR: 8.2× [Excellent]", "Net Debt/EBITDA: 3.8× [Fair]") - Question any input or assumption - Apply professional judgment to override if needed

Hybrid Approaches

Can clients use Lease Rater for simple leases, and engage us for complex ones?

Absolutely. This is a common pattern:

  • Simple leases (standard vehicles, equipment or standard property): Client uses Lease Rater independently, you review
  • Leases needing enhanced documentation or custom professional review: You handle end-to-end (potentially using Lease Rater as a calculation tool to provide the foundation to work from)

This hybrid approach maximizes efficiency:

  • Clients save money on straightforward work
  • You focus your time on high-value, complex engagements
  • Consistent methodology across all leases (whether DIY or advisor-delivered)

No exclusivity required. Use Lease Rater where it adds value, bypass it where it doesn't.

How Does White-Label Work?

Can I deliver Lease Rater reports under my firm's branding?

Yes. White-label options are available for firms who want to: - Deliver OBRs as a service provider - Maintain client-facing branding throughout - Use Lease Rater as a back-end calculation engine

What's included: - Reports generated with your firm's logo and branding - No Lease Rater references in client-facing materials - Bulk licensing for portfolio work - API access for seamless integration (enterprise plans)

How to set up: - Contact us to discuss volume, pricing, and technical requirements - We'll configure your white-label environment - You deliver reports to clients as if they were built in-house

When to consider white-label: - You have high volumes of OBR requests - You want to capture recurring revenue - You need scalability without hiring specialized staff - You want to offer FRS 102 services to multiple clients

Can I Adjust or Override Lease Rater's OBRs?

Yes - you always apply professional judgment.

Lease Rater provides a defensible starting point, but you may have entity-specific insights that warrant adjustments:

  • Better information: You may have access to formal bank quotes or recent financing terms
  • Qualitative factors: Management quality, customer concentration, or other risks not captured in financial ratios
  • Unusual circumstances: Recent ownership changes, pending litigation, sector disruptions

How to handle overrides: - Start with Lease Rater's OBR and methodology - Document your reasons for adjustment - Disclose the override in your audit/advisory working papers - File both the original Lease Rater report and your adjusted conclusion

This is standard professional practice, Lease Rater supports (not replaces) your judgment.

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What If a Client's Inputs Are Incorrect?

Rubbish in, rubbish out, but Lease Rater helps minimize this risk.

Built-in validation: - Input fields have range checks and reasonableness tests - Financial ratios are calculated automatically (reducing manual errors) - Warnings flag unusual inputs (e.g., EBITDA margin of 80%)

Your role as reviewer: - Check that client inputs match audited financials - Verify lease terms against signed agreements - Question outliers or inconsistencies - Apply professional skepticism

If inputs are wrong: - Client can re-run the calculation with corrected data - New report generated instantly (no need to wait for revised consultant study) - You review the updated version

This is faster and more transparent than traditional bespoke studies where you may not see the calculation model.

How Do I Know Lease Rater Won't Undercut My Services?

Lease Rater is a tool, not a competitor. We succeed when you succeed.

We don't: - Offer audit services - Provide accounting advice - Build client relationships - Replace professional judgment

We do: - Provide calculation infrastructure - Save you time on routine work - Support your independence (Recommend Model) - Enable you to scale advisory services (Service Provider Model)

Think of Lease Rater as: - A time-saving utility (like tax software or audit tools) - A way to handle overflow work during busy season - A resource that frees you to focus on high-value client advisory

Your expertise remains essential: - Understanding client business and risks - Applying FRS 102 judgment - Reviewing and validating outputs - Building trusted relationships

Lease Rater makes you more efficient, not obsolete.

Can Auditors Use Lease Rater for Independence Purposes?

Yes - under the Recommend Model.

Key considerations: - Third-party separation: Client engages Lease Rater directly (not through you) - No self-review threat: You're reviewing an independent calculation, not your own work - Documented methodology: Lease Rater's transparent approach supports your audit evidence

Audit firm compliance: - Check your firm's independence policies - Document your evaluation of Lease Rater's methodology - Treat Lease Rater outputs as management estimates (subject to your testing and validation)

Common audit approach: 1. Client uses Lease Rater to calculate OBRs 2. You obtain the Lease Rater report as audit evidence 3. You test the inputs (financials, lease terms) for accuracy 4. You evaluate the methodology for reasonableness 5. You conclude on whether management's discount rate is acceptable

This is consistent with auditing management estimates, you're not calculating the rate yourself.

Do You Offer Training or Support for Firms?

Yes. We can provide:

  • Onboarding sessions: Walk-through of methodology, inputs, and reports
  • Technical Q&A: Discuss specific client scenarios or unusual lease terms
  • Bulk processing: Guidance on handling portfolios efficiently
  • White-label setup: Technical support for integration and branding

Contact us if you'd like to discuss how Lease Rater can support your practice at scale.

Review Our Methodology

Download sample reports and review our transparent methodology to understand how Lease Rater builds entity-specific OBRs.

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Sample OBR Report

See exactly what your clients (or you on their behalf) will receive — including methodology, assumptions, and audit trail.

View Sample
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Methodology Guide

Understand the 4-pillar spread framework, SONIA integration, and how we calibrate for entity-specific risk.

Learn More
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FRS 102 Resources

Review guidance on the 2026 changes, discount rate requirements, and best practices for lease accounting.

Read Guide

Ready to Explore Lease Rater?

Try a calculation, review the methodology, or reach out to discuss how we can support your practice.

Calculate an OBR →

Disclaimer
Lease Rater is designed for UK SMEs preparing accounts under FRS 102. The Obtainable Borrowing Rate (OBR) calculations provided are based on market data and standardised assumptions to support your lease accounting disclosures. Results are provided for guidance and audit support purposes only and do not constitute financial advice, audit assurance, or a substitute for professional judgement. Company directors remain responsible for the final choice of discount rate and accounting treatment. Lease Rater accepts no liability for reliance placed solely on these outputs without appropriate professional review.