Why Lease Rater

Companies need a rate that reflects what they could borrow at for a similar term and security, but obtaining one is harder than it sounds:

• Banks won't help. Relationship managers give ballpark figures that aren't documented or auditable. Formal rate letters are rare for hypothetical facilities.
• Loan comparison sites fall short. Generic advertised rates don't account for your entity's credit profile, sector, size, or lease term. They're not FRS 102-compliant.
• DIY guesswork fails audit. Picking "4–5%" based on gut feel won't stand up to scrutiny. Auditors need a transparent, evidenced methodology.
• Commissioning a bespoke study is costly. Traditional manual studies cost £500–£2,000+ per calculation, with 2–4 week turnarounds. Not practical for multiple leases or tight deadlines.

Result? Finance teams are stuck between expensive delays and unacceptable audit risk.

Lease Rater gives you a credible, auditable OBR in under 2 minutes, combining market data, UK SME lending practice, and credit risk factors into a single, transparent calculation.

• Instant results. Enter your lease and company details; get your OBR, range, and PDF report immediately.
• Audit-support documentation. Professional PDF showing the rate, methodology, assumptions, and risk drivers, ready for your audit file.
• Term-matched & credit-reflective. Rates adjust for lease duration, security, sector, size, and financial strength, not one-size-fits-all.
• Built by bankers & auditors. Methodology rooted in real UK SME lending criteria, designed to withstand professional review.
• No subscriptions. No sales calls. Pay per use or bulk packs. No ongoing fees. No onboarding hassle.

Stop wasting time and money

You need FRS 102-compliant discount rates. You don't need a multi-week consulting project or a vague guess from your bank.

• Fast: Calculate an OBR in minutes, not weeks. Ideal for year-end crunch periods.
• Affordable: Low per-use pricing. No retainer. No minimum commitment.
• Repeatable: Run calculations for every lease in your portfolio. Consistent approach across entities and periods.
• Defensible: Clear narrative showing how the rate was derived. Auditors see the logic; you keep control.

Get your OBR now

Independent, third-party OBR support

You need to verify that management's discount rate is reasonable but deriving a full OBR from scratch carries risk, takes time, and isn't your core value-add.

• Third-party validation. Lease Rater provides an independent benchmark so you're not solely relying on management's estimate or your own back-of-envelope calc.
• Transparent methodology. Every assumption is disclosed. You can see why the rate landed where it did and whether it's appropriate for the client.
• Risk mitigation. Reduces the audit risk of accepting an unsubstantiated rate or creating one in-house without proper documentation.
• Efficiency gains. Spend less time building rates; more time on judgement, testing, and value-adding review work.
• Consistent standard. Apply the same rigorous approach across all your FRS 102 clients. Supports quality control and firm-wide consistency.

Use Lease Rater as a starting point, sense-check, or corroborating input for sign-off. You retain professional judgement; we provide the toolkit. For a detailed explanation of the regulatory basis, including what published guidance from ACCA, ICAEW, KPMG, BDO, and others says about how OBRs should be determined, see our Our Methodology & Regulatory Basis page.

• Headline OBR with a defensible range (low/mid/high) for sensitivity and professional judgement.
• Lease liability PV calculation. The opening present value of future lease payments discounted at the OBR: the core number for your balance sheet.
• Monthly amortisation schedule. A full month-by-month lease liability amortisation table showing interest, principal repayment, and closing balance for every period of the lease term.
• ROU asset depreciation schedule. Straight-line depreciation of the right-of-use asset over the lease term, with opening and closing net book values each month.
• Balance sheet and P&L impact summaries. Annual snapshots of the ROU asset, lease liability (current and non-current), depreciation charge, and interest expense, ready for disclosure.
• Ready-to-adapt journal-entry templates. Day 1 recognition, monthly lease payment, and monthly depreciation entries, structured for easy adaptation to your chart of accounts. (Your accountant should review and map these to your entity's specific account codes.)
• Draft disclosure-note template. A draft FRS 102 Section 20 disclosure note covering the lease liability maturity analysis, discount rate, and key accounting policy. Consult your accountant for entity-specific requirements.
• CSV export. Full schedule and summary data exportable for working papers and audit files.
• Professional PDF report including rate, methodology summary, key drivers, and assumptions ready for working papers.
• Market-anchored base rate. Aligned to observable UK risk-free benchmarks (SONIA term structure), not plucked from thin air.
• Credit-adjusted spread. Based on 14 industry-standard financial metrics (profitability, liquidity, leverage, coverage, cash flow, balance sheet strength), security quality, sector risk, company size, and lease concentration. Each metric assessed using 6-band risk classification aligned to UK SME lending standards.

See how it works

We show you how the OBR is built: base rate + spread from four pillars weighted by predictive power:

• Financial health (45% weight): 14 metrics across profitability, liquidity, leverage, coverage, and cash flow
• Security/structure (30% weight): Collateral quality, payment terms, credit maturity
• Sector & size (15% weight): Industry risk and company scale
• Exposure (10% weight): Concentration ratios

Methodology is transparent and auditable. Spread ranges are informed by the author's professional experience in UK SME commercial lending and credit risk pricing, in the absence of a published market dataset for this asset class.

• Pay per use: £49 per OBR calculation (introductory offer; standard £99).
• Bulk packs: 10 calculations for £399 (£39.90 each). Ideal for portfolio work or accountants with multiple clients.
• No subscriptions. No onboarding. No sales calls. No auto-renewals.

Simple, transparent pricing. You pay for what you use.

• Reports stored securely for your records and audit trail. You can revisit and download past calculations anytime.
• UK-hosted application with encrypted transport (HTTPS) and secure authentication.
• No third-party selling. Your data is yours. We don't sell to advertisers or data brokers.
• See our full Privacy Notice and Terms of Use.

• Finance Directors & Controllers who need quick, credible OBRs for FRS 102 lease accounting.
• Audit teams (Big 4, mid-tier, boutique) seeking independent third-party input to validate client discount rates and reduce audit risk.
• SME advisors & accountancy practices preparing multiple sets of accounts under FRS 102 (2026). Consistent, scalable approach across clients.
• CFO service providers supporting portfolio companies or outsourced finance functions.

No setup. No demo calls. Just fast, defensible OBRs when you need them.

Calculate your OBR now