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Asset and Leasing Finance - What is it?
Our Asset and Leasing Finance solution could help you purchase equipment that your business needs to operate without the financial burden of outright purchase.
You pay for the equipment with the income it generates or the costs saved helping you to maximise your working capital.
Our partners may have a number of solutions that could be tailored to suit your individual requirements.
1. Hire Purchase
You select the supplier and the equipment you want. Our partners agree with you a repayment plan for the equipment usually our terms are between 1 and 5 years (and for certain long life assets, up to 7 years, upon request).
The supplier delivers the equipment to you and our partners pay the supplier.
You have direct and immediate ownership of the equipment including all the VAT applicable to the cost price. At the end of the repayment period, upon receipt of an option to purchase fee, the equipment is yours. Hire Purchase helps by spreading the cost of expensive items over an extended time period. All interest costs are off set against tax as they are paid and you claim Tax Write Down allowances.
For limited companies or where you require funding in excess of £25,000.
2. Finance Lease Similar to our Hire Purchase solution with a repayment plan over 1 to 5 years except that in certain circumstances you could take advantage of substantial tax benefits associated with leasing. This is normally applicable when you acquire short life equipment and you decide to depreciate the equipment over a short period of time. All the lease rentals paid could be off set against tax.
3. Minimum Term Rental Agreement
Similar to Finance Lease, the main difference being that once the minimum hire period has expired, you could return the goods to us giving us advance notice of this at no extra cost to yourself.
4. Refinancing Equipment
If you already have cash tied up in existing plant and machinery, and need to release that cash to invest elsewhere in your business, our partners may be able to help. Our partners may be able to buy your existing equipment from you and provide you with a Hire Purchase or Finance Lease facility which you could repay over an agreed period.
To refinance your assets must be durable with a proven resale potential and which are uniquely identifiable perhaps by a serial number.
What sort of equipment could I acquire?
A range of assets from catering equipment to audio and visual equipment to beauty equipment to name a few and whose value is from £1k to £1m.
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