Hire Purchase
Hire Purchase is an excellent choice if you want to purchase a business asset through regular repayments without investing all of your capital at once. The agreement can be tailored to your specific requirements by structuring fixed or variable monthly payments which can also include seasonal payment schedules or even a balloon payment at the end of the contract to lower the monthly costs. You are able to claim writing down capital allowances thus reducing your tax bill, and can offset the interest element of monthly payment against the taxable profit. Once all installments and final option fee have been paid, you take final ownership.
The economic benefits of Hire Purchase are:
- Loan purpose: Business-critical assets only (Commercial Vehicles, Industrial Plant, IT, Cars, Infrastructure)
- Loan amount: From £1,000 per asset up to £10M plus per transaction
- Loan term: From 12 months, up to 7 years (84 months)
- Loan details: Fixed and Variable rates for Secured and Unsecured lending inc Balloons / Residuals
- Loan structure: New assets – up to 100% of the invoice price. Used assets – up to 90% of the invoice price / market valuation. In addition, we can structure 1 x payment / 3 x payments as a profile i.e. 1+35 / 3+33
- Used asset age: Up to 15 years old at end of term, depending on type of asset
Finance Lease
By choosing a fixed rate Finance Lease contract you can purchase an asset for a fixed period of time without the burden of a large up front VAT payment as the full VAT is spread over the agreement. We can offer a wide range of flexible payment options including structured or seasonal rental schedules and balloon payments. You enjoy 100% of the benefits of the future asset value as it is “on balance sheet” you can also offset the interest-element in the monthly rental against taxable profits. When all the rentals have been paid you can either extend the use of the asset on an annual peppercorn rental or alternatively the asset can be sold to an independent third party for a fair market value figure. The majority of the sale proceeds being refunded (circa 95%) to you by way of a rebate.
The economic benefits of a Finance Lease are:
- Loan purpose: Business-critical assets only (Commercial Vehicles, Industrial Plant, IT, Cars, Infrastructure)
- Loan amount: Up to £1,000 per asset up to £10M plus per transaction
- Loan term: From 12 months, up to 7 years (84 months) extendable on peppercorn rentals
- Loan details: Fixed for Secured and Unsecured lending inc Balloons / Residuals
- Loan structure: New assets – up to 100% of the invoice price. Used assets – up to 90% of the invoice price / market valuation. In addition, we can structure 1 x payment / 3 x payments as a profile i.e. 1+35 / 3+33
- Used asset age: Up to 15 years old at end of term, depending on type of asset
To find out how Advance Finance & Leasing could make a difference to your capital expenditure plans, please get in touch at enquiries@advanceleasing.co.uk
