Asset Finance Products

Operating Lease

This is a rental agreement which can be used to finance a broad spread of business assets but is particularly effective for financing heavy commercial vehicles. The Funder builds in a residual value to reduce the rentals, thus helping cash flow and making 'off-balance sheet' funding possible.

Key features and benefits:

 

  • Preserves cashflow – offers the obvious cashflow benefits of paying in instalments.  
  • Initial deposits can be as low as one monthly rental down with the VAT spread over the term of the agreement.
  • Competitively priced - the Funder or manufacturer takes the risk in the residual value of the equipment and factors this into the rental, bringing down the periodic cost to you.
  • Fixed maintenance contracts can also be built in to the monthly rental
  • Tax efficient - the rentals can normally be offset against taxable profits
  • Asset normally treated as 'off-balance sheet' (subject to your auditors' approval).
  • Flexible - at the end of the term, you can return the asset or extend the period. Either way, you do not carry the problem of disposal of the equipment.
 

Leasing (Finance Lease)

Where ownership is not required, finance leasing works well for a broad spread of business assets as well as vehicles.

Key features & benefits:

 

  • Preserves cashflow – offers the obvious cashflow benefits of paying in instalments.
  • Initial deposits can be as low as one repayment/rental down with the VAT spread over the term of the agreement.
  • Flexible – repayments/rentals can be structured according to your anticipated cashflow.
  • Tax efficient - the repayments/rentals can normally be offset against taxable profits.
  • Cost-effective - the Funder, as owner of the asset, claims the writing down allowances and passes them on to you in the form of lower repayments/rentals.
  • At the end of the lease you can continue renting the equipment by paying annual secondary repayments/rentals or sell the goods to a third party and retain up to  99% of the sale proceeds.
   

Contract Purchase

Suits individuals and companies who want to own their vehicles, but who also want to avoid the risk of depreciating assets.

Key features and benefits:

 

  • Contract purchase has similar benefits to contract hire regarding fixed repayments, additional provisions and flexible terms .
  • The Funder will guarantee the future resale value of the vehicle at the end of the contract purchase agreement for a known, fixed amount.
  • Ownership passes to the customer at the end of the contract purchase agreement when all repayments have been made.
   

Contract Hire

A fixed term, fixed repayment contract with or without maintenance allowing you the full use of the vehicle without the worry or risk on disposal. If you would like a total fixed cost motoring package then contract hire is the answer for your personal or business needs.

Key features and benefits:

 

  • Preserves cashflow - offers the obvious cashflow benefits of paying in instalments and the fixed repayments assist with your budgeting.
  • Flexible contract hire terms to meet your requirements with variable duration and mileage terms available.
  • Contract hire repayments can include the provision of maintenance, a relief vehicle, emergency cover, road fund license, and vehicle collection and disposal.
  • Contract hire removes depreciating assets from the balance sheet and the associated risks of owning vehicles.
   

Hire Purchase / Lease Purchase

A straightforward repayment facility providing outright ownership at the end of the agreement. Repayments can be fixed and structured in a flexible way i.e. a balloon or final lump sum can be applied to reduce the monthly repayment.

Key Features & benefits:

  • Preserves cashflow - offers the obvious cashflow benefits of paying in instalments.
  • Tax efficiency – as a business can claim writing down allowances and can offset interest payments against taxable profits.
  • Flexible - we can tailor deposits, periods and repayments to suit your specific personal or business requirements.


Balanced Payments Plan:

  • A variable interest rate but with fixed repayments.  
  • When base rates fluctuate, only the number of repayments varies but the amount stays the same, thus helping your administration and budgeting.