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Products for your customers

Your customers can avoid tying up their valuable working capital by spreading the cost of the equipment their business needs over the course of its economic life. And with a range of finance options available including Hire Purchase and Lease Finance, they can make regular repayments over an agreed period to suit their requirements.
Contact the Dealer Services Team

Contact the Dealer Services Team

  • 0118 955 6734 02 and 03 numbers are charged at standard call rates and included in most mobile and landline operators inclusive minute packages

Hire Purchase is a popular option if your customer wants to own the asset outright at the end of the agreement term. Aldermore will purchase the asset on the customer’s behalf and create a tailored repayment plan to suit their budget. At the end of the agreement term, the customer can choose to take ownership of the asset from us for a nominal fee. 

The benefits of Hire Purchase to your customer:

  • Simple, straightforward product - VAT is paid up-front and the customer makes their own arrangements for maintenance, repairs and servicing
  • Tax advantages – as well as reclaiming VAT (if VAT registered), your customer may be able to claim capital allowances and also offset repayment interest against profits
  • Flexibility – your customer chooses how the finance is structured: with a flexible deposit, fixed payments and option of a final balloon lump sum payment at the end of the agreement
  • Ultimate ownership – your customer has the right to buy the asset at the end of the agreement term.

At Aldermore we are specialist providers of Contract Hire to the materials handling and transportation market. We offer the complete package for you and your customers.

With low up-front costs and rentals covering both the finance and maintenance of the asset, your customers have a fixed budget which provides peace of mind that there will be no unexpected repair bills. At the end of the agreement term, the asset will be returned to you, giving you the opportunity to offer replacement assets.

The benefits of Contract Hire to your customer:

  • Cost control – offers easy budgeting for the upkeep of the equipment throughout the term
  • Free up capital –VAT is spread across each payment meaning up-front costs are lower
  • Tax efficient – 100% of rentals paid are normally offset against taxable profits
  • Simple and straightforward – offers a complete service package
  • Off-balance sheet funding – equipment does not depreciate on your customer’s balance sheet
  • Use of the equipment may increase productivity –it could ‘pay for itself’– rentals matched to income

Aldermore purchases the equipment and then leases the equipment to your customer by way of monthly rentals. VAT is calculated on the monthly rentals rather than as a lump sum at the start of the agreement. This therefore removes the initial outlay at the start of the agreement for your customer. And at the end of the primary rental period your customer has two options: to return the equipment to us or to continue using the equipment by making payments to us.

The benefits of finance lease to your customer:

  • Free up capital –VAT is spread across the contract period meaning up-front costs are lower
  • Tax efficient – asset repayments count as a business expense
  • Cost control – offers easy budgeting for the upkeep of the equipment throughout the term, with the option of including maintenance costs in the repayment plan

 

This off-balance sheet funding solution allows your customer to use the equipment for the term of the agreement without the risk of ownership. Your customers can benefit from a lower fixed monthly cost because the monthly rentals are calculated taking a residual value into account.

The initial outlay for the customer is also low because an initial deposit is not required, VAT is not due in advance and the rental cost is subsidised by the residual value. And at the end of the primary rental period your customer has two options: to simply hand the equipment back to us or to continue renting the equipment based on fair market value after the primary period of rental.

The benefits of operating lease to your customer:

  • Free up capital –VAT is spread across the contract period meaning up-front costs are lower
  • Tax efficient – asset repayments count as a business expense
  • Cost control – offers easy budgeting for the upkeep of the equipment throughout the term, with the option of including maintenance costs in the repayment plan

 

Compare our products

  Contract Hire Hire Purchase Finance Lease Operating Lease
Leaves working capital intact
Customers can claim FYAs/ WDAs
Rentals are tailored to cash flow
Rentals are normally tax deductible Interest only
On balance sheet funding
Off balance sheet funding
Choice of fixed/ structured rentals
Ultimate ownership of asset
Fixed term agreement
VAT paid with deposit
VAT paid on each payment