For asset finance to pass the "Best Value" test an element of residual value and/or operation risk is likely to be included.

The Full Details are probably only of interest to professional advisors and for many operating in this sector an overview is of greater use.

Procurement in the public sector can be subdivided into two categories, PPP/PFI and conventional.

Under PPP/PFI procurement assets are not acquired rather the services the assets help provide. As payment for the service is dependent on that service meeting a minimum standard any asset finance secured against these payments incorporates operating risk. This risk profile results in asset finance having a peripheral role within PPP/PFI procurement.

The government has recognised that PPP/PFI procurement is not appropriate in all cases, most notably small transactions and IT. In these circumstances operating lease structures have an excellent chance of meeting "Best Value".