Hire Purchase
Key Features
 

• Popular and traditional method of funding for business assets

• Able to fund assets such as HGV, Agriculture, Plant, cars, ancillary equipment & commercial vehicles.

• Fixed and variable rate pricing available

• Non-regulated and regulated agreements

• The customer will ultimately own the asset on completion of payments

• Asset is treated as ‘on’ balance sheet for the customer

• The customer typically pays the VAT upfront as part of the overall deposit  and therefore no VAT is charged on the repayments

• VAT can be deferred up to a maximum of 3 months

• The customer claims the tax capital allowances (writing down allowance)

• The interest element of the customers repayments are usually an allowable expense against taxable profits

Key Benefits
 

• Alternative source to bank finance

• Fixed rate funding method allows the cost of the asset to be spread over an agreed period therefore providing cash flow benefits

• Facility cannot be withdrawn provided payments are made – unlike other sources of funding e.g. overdrafts

• Allows the customer to reduce their tax liabilities if they can fully utilise the allowances available

• Variable rate funding available tracking the latest interest rates

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Finance Lease
Key Features
 

• Payments spread over the period of the agreement

• Fixed rate pricing only

• Non-regulated and regulated agreements

• Able to fund other assets such as cars, ancillary equipment and commercial trucks

• The customer treats the asset as ‘on’ balance sheet

• Rentals are calculated on the cost of the asset, exclusive of VAT

• The rentals payable attract VAT (recoverable by VAT registered companies)

• Reduced disposal or depreciation concerns

• Customer rentals are normally off set against taxable profit

Key Benefits
 

• The customer does not have to pay the VAT upfront

• For companies that cannot take full or immediate benefit of the tax capital allowances (writing down allowances) a finance lease reflects the cash flow benefits in reduced rentals (which are tax deductible)

• Allows the customer to retain the majority of the sales proceeds on disposal

• Allows the customer continued use after the primary period by paying a secondary period rental

 

 

 

 

 

Re-Finance
Key Features
 

• Re-finance a single or a fleet of vehicles

• Fixed rate pricing only

• A majority of vehicles value can be advanced

• Sale & Hire Purchase back option (see key features of Hire Purchase)

• Sale & Lease back option (see key features of Finance Lease)

• Loan & Chattel mortgage option

• Ability to finance vehicles which are already financed with another funder

Key Benefits
 

• Provides a cash injection by releasing the equity in your vehicle or fleet

• Removes reliance on banking facilities

• Can aid the long term stability of the business

• Accurate valuation of vehicles obtained for accounting purposes

• Reduces annual bank overdraft facility fees

 

 

 

 

 

 

Contract Hire
Through an associated partner we can quote comprehensive packages covering both cars and vans

Key Features
 

• Both personal and business car finance options available

• Includes any make and model of vehicle

• Fixed monthly payments

• Option to include all maintenance and servicing costs

• Lower monthly repayments compared to alternative finance options as a residual value is built in

• Rentals are normally off set against taxable profit

Key Benefits
 

• Fixed cost vehicle provisions and maintenance enabling customers to budget accurately

• Reduces residual value and disposal concerns

• Minimises initial financial outlay

• Improves customers financial ratios as is accounted as ‘off balance sheet’

 

 

Business Loans
Key Features
 

• Loans for any purpose

• Loans from £5,000 to £150,000 unsecured. Directors Personal Guarantee required

• From £100,000 to £1,000,000 Secured i.e Company Debenture, second charge lending

• Loans can be arranged against asset purchases from £20,000 to £1,000,000 – no deposit required, VAT funded

• Interest Rates Average 7.6 – 8%

• Fixed Rate, monthly repayment loans from 6 months to 5 years

• No Up-Front Application Fees or Early Repayment charges

• Minimum turnover £100k per annum and must be a UK resident director

Key Benefits
 

• Totally independent from business banking, giving total flexibility to run your own business effectively

• Fixed rate funding method allows the cost to be spread over an agreed period therefore providing cash flow benefits

• Funds generally available to successful applicants within 7 days

 

 

 

 

Invoice Factoring
Key Features
 

• Provides an immediate injection of cash against the value of outstanding invoices

• Goods are delivered or services provided to the end customer

• The customer is invoiced and a copy of the invoice is sent to the factoring provider

• A pre-agreed percentage value of the invoice is advanced (typically between 70% and 90%)

• Cash advances are released very quickly normally next day

• The outstanding debt is collected from the end customer by the factoring provider and the remaining balance is paid to the business

• This is a source of finance which does not involve borrowing

Key Benefits
 

• Immediate cash injection – money is released as soon as an invoice is raised, so no waiting for 60 days or more for payment

• Improved cash flow - companies can tender for new business and start work on new orders without delay, as well as being able to settle own bills promptly

• Ongoing working capital – factoring allows financial flexibility as the funds that can be accessed grow in line with sales

• Time saving - factoring frees up valuable management time by providing a cost effective way of outsourcing sales ledger management and collections

• Peace of mind through protection from bad debts - with additional credit insurance the business will still get paid, even if the customer becomes insolvent