Asset Finance

Asset Finance is for the purchase of vehicles, plant and machinery. The security is based on the asset concerned and is repayable within the useful life of the asset. Asset Finance covers many facilities, and each facilty has many variations.

The customer selects the supplier of the asset and negoitiates directly the specification and price. An initial deposit is paid (or rentals in advance) plus the VAT. Leaving the balance to be funded over an agreed term, typically 1-7 years. Balloon payments and VAT deferalls are an option.

The main facilities include-

Hire Purchase & Lease Purchase

Benefits of Hire Purchase & Lease Purchase-

• Protects Cash flow for immediate requirement.
• Existing Bank credit lines are uneffected.
• Asset is self funding.
• Rentals can be monthly, quarterly, seasonal, fixed or variable interest rates.
• European Bank funding available.
• Asset financed is included on Balance sheet.
• Interest can be Offset.
• Capitol Allowances are collected.

Finance Leasing

Benfits of finance Leasing-

• Protects Cash flow for immediate requirement.
• Existing Bank credit lines are uneffected.
• Asset is self funding.
• Rentals can be monthly, quarterly, seasonal, fixed or variable interest rates.
• Rental Tax Allowance off set 100% (up to £3,000 P.A. for Cars)
• Asset financed is now included on Balance Sheet (SSAP21).

Operating Lease & Contact Hire

Benefits of Operating Lease & Contact Hire-

• Protects Cash flow for immediate requirement.
• Existing Bank credit lines are uneffected.
• Asset is self funding.
• Conform to SSAP 21 & FRS 5 & CAA 2001.
• Off balance sheet funding.
• Rentals can be offset in full against taxable Profits.