About Asset Finance
“Buy that which appreciates, lease that which depreciates” -
J. Paul Getty
By using asset finance or re-finance options, businesses can avoid
tying up working capital, thus freeing it for other more productive
purposes and improving cash flow.
We can assist with funding for the purchase, or leasing of all
types of business assets (new and used).
For asset purchase we can help with Lease Purchase (or Contract
Purchase) and Hire Purchase.
For asset leasing we can help with. Operating Leases (for solid
items with residual value - i.e. printing presses), and Finance
Leases (typically for soft items that have no long term residual
value - i.e. carpets and furniture).
The benefits of leasing
- Conserve cash reserves
- Budget outgoings
- No extra security required
- Possible tax advantages
- Maintain credit lines for other use
- Upgrade to the latest equipment
- Pay for usage not ownership
All types of assets considered: vehicles
of all types, plant,
other industrial machinery, craft, vessels, stock, floor plan,
etc
Interested in Asset Finance options?
Please fill out the following information and we will contact
you as soon as possible (fields marked with * are required).
Alternatively call us free on 0800
781 3414 to speak to one of
our team.
Hire purchase is the most typical and readily available credit
facility. You source the asset and negotiate the purchase price
with the supplier. You pay a deposit to the finance company, typically
10-20%, and the finance company takes title directly from the supplier.
At the end of the agreement you obtain title through the payment
of an ‘Option to Purchase’ fee. Hire purchase agreements
can be based on a fixed or variable rate, the monthly commitment
can be reduced by the inclusion of a balloon.
Interested in Hire Purchase? – Contact Us
Lease purchase differs from Hire Purchase in that instead of paying
a deposit of 10-15%, you typically pay a deposit as a multiple
of the repayments. The remaining balance and interest is repaid
in instalments.
Interested in Lease Purchase? – Contact Us
The finance company takes full ownership of the asset and rents
the goods to you over a predetermined period. The finance company
can claim the writing down allowances and pass this benefit to
you by reducing the rental payments. The purchase price used
to calculate the rental is net of VAT. Typically you will source
the supplier. As with hire purchase, you can include a balloon
rental to reduce the value of the primary rentals. At the end
of the agreement you may have the option to enter into a secondary
period, at a minimal (or peppercorn) rental. As you are generally
covering the total cost and hire charges within the primary period,
you will be entitled to a share of the sale proceeds should the
leasing company allow you to sell on their behalf.
Interested in a Finance Lease? – Contact Us
An Operating Lease differs from a Finance Lease in that the primary
period rentals do not cover substantially all of the capital
cost and hire charges – leaving a significant residual
value at the end of the period. As the asset needs to be sold
on at the end of the primary period to recover this residual
value, it is rare for an Operating Lease to have a secondary
rental period (the lease company may be able to structure a Finance
Lease for you to ‘wash-out’ the residual value).
You may source the supplier for an Operating Lease, but it is
often the case that the leasing company can acquire the asset
for you more cheaply. At the end of the primary period you have
the option of handing back the asset and starting another Operating
Lease on a brand new one.
Interested in an Operating Lease? – Contact Us
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