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Asset Finance

Primarily dealing with asset finance from £3,500 upwards, hire-purchase, leasing, contract-hire, sale and leaseback.

Leasing

Leasing is a method by which a company can make an acquisition without incurring all of the cost on day one. Leasing offers a monthly or quarterly payment structure over a given period of time; it's as straightforward as that and all you need to do is choose which lease is right for you.

Operating Lease

This is mainly used for funding larger assets - an operating lease gives you all the benefits associated with using the asset without the responsibility of ownership.

Rentals over the term are low as they are based on the purchase cost less the anticipated future value (RV or Residual Value) plus interest. Benefits of operating leases include:

No deposit required

The term of the agreement is shorter than the useful life of the asset. The asset is never owned by the borrower although continued rental after the initial term is possible

Low rental during the term due to the RV which aids business cash flow

Off balance sheet - 100% Tax deductible

Hire Purchase

One of the main benefits of hire purchase finance is that it allows customers ownership of the goods/equipment from day one for tax and accounting purposes. Goods are invoiced to the lender/finance company and the customer normally pays fixed instalments over an agreed period of 2-5 years. At the end of the agreement full title passes to the customer for a nominal fee. The VAT is normally paid on signing the agreement.
You claim the ownership allowance (writing down allowance as a charge against tax liability.
Fixed repayment enable budgetary and financial control.
Very effective with second hand or long life equipment.