Finance

Why Asset Finance?

Asset Finance is a flexible, cost-effective and tax efficient way to successfully grow your business without tying up valuable working capital. Asset Finance allows you to ease your cash flow through funding assets at an agreed rate over a set period of time.

Benefits:

• Maximise your cash flow.
• Improve your tax efficiency.
• Manage budgets with fixed rates. repayments and rentals.
• Benefit from full use of asset with minimum upfront payment.

Finance Options		Features & Benefits
Hire Purchase Flexible and cost-effective alternative to bank loan funding.		Deferred Ownership upon delivery of asset. Repayments matched to depreciation of asset. Purchase asset for nominal fee at end of agreed term. Finance secured on asset removing need for security. Claim capital allowances immediately. Fixed or variable interest rate funding available. Interest on payments is tax deductible. VAT recoverable on purchase price.
Finance Lease Tax efficient asset leasing.		Rentals matched to cash flow. Retain most of sale proceeds at end of agreed term. Fixed or variable interest rate funding available. VAT payable on the rentals not purchase cost. Offset rentals against taxable profits. Security not usually required.
Operating Lease Lower cost 'off-balance sheet' funding.		Rental and return conditions calculated on the future of the asset. Lower rentals based on residual values. Enhanced return on assets from off-balance sheet funding. Avoids risks associated with asset ownership.

Feature	Hire Purchase	Finance Lease	Operating Lease
Eventual Ownership
Improved Cash Flow
No Depreciation Risk
Off Balance Sheet
Interest/Rental Allowable Against Tax
Claim Capital Allowances
VAT Exempt on Repayments
VAT Reclaimable on Asset Cost
VAT Reclaimable on Rentals 0% Restriction on Cars with private Use)
Fixed Term and Repayments/Rentals
Fixed, Variable or Tailored Funding Options
Receive Proceeds from Asset Sale