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Hire Purchase Lease Refinance

Hire Purchase

Hire Purchase (HP) is a popular option if your customer wants to own the asset outright at the end of the agreement term.

We’ll purchase the asset on the customer’s behalf and create a tailored repayment plan to suit their budget. At the end of the agreed term, the customer can choose to take ownership of the asset for a nominal fee.

The benefits of Hire Purchase:

  • 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 or variable payments, and the 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.
    Seasonal payments. Offered for the agriculture market to tailor repayments to meet their seasonal income.
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Lease

A popular option if the customer isn’t looking to own the asset outright at the end of term. We buy the equipment and lease it back to the customer with monthly rentals.

The benefits of leasing are:

  • Your customer can free up capital as VAT calculated and paid on the monthly rentals, spreading the cost across the contract, keeping upfront costs down.
  • Leasing can be tax efficient as repayments are counted as a business expense.
  • Your customer can control costs allowing for easy budgeting for maintaining the equipment. They can also choose to include maintenance costs in the repayment plan.

We have a range of lease options including:

Finance Lease

Finance lease has a primary term with fixed rentals.

At the end of the primary period your customer can:

  • hand the equipment back to us,
  • sell to a third party on our behalf and retain a percentage of the sales proceeds or
  • continue renting it after the primary period end

Operating Lease

An operating lease is a lease with fixed rentals that reflect a predicted future residual value, which is an amount your customer won’t pay, which means, rentals are reduced.

We take the residual risk and will sell the asset at the end of the agreement to recover this unpaid amount, protecting your customer from any potential loss. This transfer of risk may allow your customer to treat the asset as off-balance sheet, which may give improvements on key accounting ratios.

At the end of the primary period your customer can:

  • hand the equipment back to us or
  • upgrade or replace the asset on lease

Finance Lease

Finance lease has a primary term with fixed rentals.

At the end of the primary period your customer can:

  • hand the equipment back to us,
  • sell to a third party on our behalf and retain a percentage of the sales proceeds or
  • continue renting it after the primary period end

Operating Lease

An operating lease is a lease with fixed rentals that reflect a predicted future residual value, which is an amount your customer won’t pay, which means, rentals are reduced.

We take the residual risk and will sell the asset at the end of the agreement to recover this unpaid amount, protecting your customer from any potential loss. This transfer of risk may allow your customer to treat the asset as off-balance sheet, which may give improvements on key accounting ratios.

At the end of the primary period your customer can:

  • hand the equipment back to us or
  • upgrade or replace the asset on lease

Refinance

Refinance is designed to release equity in existing hard assets and produce an injection of cash that can be used to fund a variety of activities, including:

  • Funding specific business projects
  • Putting a deposit on new equipment
  • Acquiring a new business
  • Purchasing new assets that may not be suitable for finance

Refinance can be used to fund unencumbered assets or assets financed by another provider (subject to settlements and equity position). We can look at deals for refinance over £25k with varying degrees of security required:

  • Deals between £25k - £150k. Subject to asset age, condition and usage (typically up to 80% of our valuation).
  • Deals over £150k. These may require additional security in the form of waivers from debenture holders and registry of a chattel mortgage against the asset.
  • Vehicle balloons. We continue to offer refinancing at all values.

Unfortunately, we can’t support:

  • Refinance on assets to support distressed cash flow
  • Refinance for soft assets
  • Refinance in Scotland

Sale and Hire Purchase / Lease Back

This allows assets purchased in the last 90 days to be funded at the full invoice price (less the deposit).

  • Asset must have been purchased and have underlying invoices dated within 3 months
  • Valid proof of payment needed to evidence title. This can be in the form of a
    • bank statement to show the sale or
    • an email from the underlying supplier confirming the asset has been paid for in full by the customer
  • Asset inspection needed for transactions over £100k
  • Sale agreement to be completed
  • Unfortunately, we cannot transact this product in Scotland

Refinance is designed to release equity in existing hard assets and produce an injection of cash that can be used to fund a variety of activities, including:

  • Funding specific business projects
  • Putting a deposit on new equipment
  • Acquiring a new business
  • Purchasing new assets that may not be suitable for finance

Refinance can be used to fund unencumbered assets or assets financed by another provider (subject to settlements and equity position). We can look at deals for refinance over £25k with varying degrees of security required:

  • Deals between £25k - £150k. Subject to asset age, condition and usage (typically up to 80% of our valuation).
  • Deals over £150k. These may require additional security in the form of waivers from debenture holders and registry of a chattel mortgage against the asset.
  • Vehicle balloons. We continue to offer refinancing at all values.

Unfortunately, we can’t support:

  • Refinance on assets to support distressed cash flow
  • Refinance for soft assets
  • Refinance in Scotland

Sale and Hire Purchase / Lease Back

This allows assets purchased in the last 90 days to be funded at the full invoice price (less the deposit).

  • Asset must have been purchased and have underlying invoices dated within 3 months
  • Valid proof of payment needed to evidence title. This can be in the form of a
    • bank statement to show the sale or
    • an email from the underlying supplier confirming the asset has been paid for in full by the customer
  • Asset inspection needed for transactions over £100k
  • Sale agreement to be completed
  • Unfortunately, we cannot transact this product in Scotland
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T&Cs will apply, subject to status and affordability. Any asset used as security may be at risk if you do not repay any debt secured on it.