Finance Products
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Hire Purchase
is a finance loan agreement, under which, you, the client, obtain legal title to the vehicle or machinery once all finance repayments have been made. It is also known as a consumer loan. You select the supplier and the asset you want. We agree with you a repayment plan for the equipment - usually between 2 and 5 years (and for certain long life assets, up to 7 years, upon request).
The supplier delivers the equipment to you and we pay the supplier. You have direct and immediate ownership of the equipment including all the VAT applicable to the cost price. At the end of the repayment period, upon receipt of an option to purchase fee (usually a nominal fee), the equipment is yours and legal title passes, although for tax purposes, the client is regarded as the owner of the vehicle from the outset. Hire Purchase helps by spreading the cost of expensive items over an extended time period. All interest costs are off set against tax as they are paid and you claim Tax Write Down allowances.
Balloon Payment
Finance Lease
Similar to Hire Purchase with a repayment plan over 2 to 5 years except that in certain circumstances you can take advantage of substantial tax benefits associated with leasing. With a Vehicle Finance Lease agreement, the vehicle is financed free of VAT. A Finance Lease is usually the choice of a non VAT registered business or company, as they benefit most by the VAT free aspect of the lease.
The cost of the vehicle and the proposed annual mileage are used to calculate the monthly rental of the vehicle, under the finance lease. The vehicle is sold at the end of the finance lease, by the lender and the proceeds of the sale are returned to the client.
Refinancing
If you already have cash tied up in existing assets, and need to release that cash to invest elsewhere in your business, we can help. We can buy your existing asset from you and provide you with a Hire Purchase or Finance Lease facility which you can repay over an agreed period.
To refinance your assets must be durable with a proven resale potential and which are uniquely identifiable perhaps by a serial or registration number.
PCP (Personal Contract Purchase)
is a relatively new way to finance your desired new or nearly new vehicle. It allows you to contract into an agreement over a set period of time, with an agreed maximum mileage. PCP offers a lower cost and is a more flexible alternative to other finance packages. The PCP also offers much greater flexibility at the end of the term, the driver can choose from these options:
Return the Car
With PCP, when the contract term comes to an end, the driver can advise us and simply return the car with nothing else to pay, subject to it being in a reasonable condition. The advantage of this approach is that there is no need to pay the "Final Optional Payment". Where a vehicle is returned in a condition that is considered by the lender to be below the anticipated standard for age and mileage at the end of the contract, charges may be applied to bring the vehicle to the required condition
Keep The Car
PCP allows the driver to own the car outright, by paying the Final Optional Payment Benefits Of Personal Contract Purchase
• Fixed Monthly payments
• Option to Purchase at the end of contract
• Minimal Deposit necessary 1-3 Monthly payments subject to credit status
• Ability to increase deposit to reduce monthly payments
• Flexible contract terms with & without maintenance
Contract Hire
You simply hire a vehicle for an agreed period at a contracted monthly rate. With contract hire, the lender retains the ownership of the vehicle throughout the contract and at the end of the contract hire period, the vehicle is returned to the lender.
Contract Hire is the perfect option if a company wishes to reduce the financial risk and administration hassles of running their own fleet. The lender takes care of everything for you, including, buying, servicing and the disposal of the vehicles at the end of the contract hire period. Contract Hire Benefits
• Fixed monthly payments improve cash flow and ease budgeting burdens. With contract hire, all of the financial risks are met by the vehicle leasing company, leaving you secure in the knowledge that you need only make a fixed payment each month
• Vehicles that are leased under contract hire, are owned by the lender and do not appear on your balance sheet as a capital asset. This improves your company's borrowing ratio
• Administration of the fleet is kept to a minimum, under contract hire, as the lender is responsible for sourcing, buying, servicing and disposing of the contracted vehicles.
Contract Purchase
A contract purchase agreement is basically a contract hire agreement, with an option to make a balloon payment with your final payment, at which point the vehicle title belongs to the client, rather than the lender.
