Funding

Hire Purchase

Otherwise known as lease purchase, hire purchase is a simple repayment facility, where you eventually own the asset at the end of your agreement with us.

Hire purchase benefits

  • Total control – the asset is yours at the end of the agreement.
  • Flexibility in your repayments – makes for easy budgeting.
  • Fixed or variable interest options – it’s your decision which is best for you.
  • Tax advantages – normally you can claim writing-down allowances and perhaps capital grants, while repayment interest may be offset against profits and VAT is usually reclaimable (special rules apply to cars).

There is great flexibility with this type of asset finance.  We can structure it in various ways, with a flexible deposit, fixed payments and perhaps a balloon final lump sum.

 

Contract Purchase

Fixes your monthly payments and offers you flexible terms.  This type of finance gives you the opportunity to either retain or return the asset at the end of the agreement.

Contract Purchase Benefits

  • Fixed monthly payments – budgeting is easier when you know the costs in advance.
  • Flexible agreement terms – variable terms and mileage available.
  • Optional maintenance and added value services – can be included in the agreement for certain assets.
  • Guaranteed resale value – we will fix an asset resale value to take effect at the end of the agreement.
  • Full ownership at the end of the contract – You own the asset once all payments have been made.

The finance may be preferable if you want to own your asset, yet avoid the risk of depreciating assets.  A guaranteed residual value helps improve your cash flow during the agreement while making the asset cost effective to buy.

 

Finance Lease 

The benefits of ownership with spread fixed rentals and disposal is taken care of.

Finance Lease Benefits

  • Low up-front costs – For just a small outlay, you can use the assets immediately.
  • Flexible repayment structure – rental payments can be tailored to match your cash flow.
  • Fixed or variable interests options – you decide which suits you best.
  • Tax advantages – VAT is payable on the rentals, not the purchase price, while payments can normally be offset against taxable profit (special rues apply to cars).

Monthly payments can be matched to your cash flow.  At the end of the commercial leasing agreement, the relevant assets are sold and you receive writing-down allowances and this is reflected in your monthly payments.