Asset Finance

 

- Hire Purchase and Lease Purchase

One of the most adaptable ways to fund a fixed asset is Hire Purchase (also referred to as Lease Purchase - for business users). With monthly or quarterly payment profiles, normally structured over 2-7 years (depending on the age and type of goods/equipment financed), you can enjoy economic ownership of the asset from the outset. This type of funding is particularly suitable with assets that have a long working life within the business.

Specific Benefits.

1. You can claim writing down allowances (WDA) on the cost price of the asset as a charge against tax liability.
2. Provided you are registered for VAT you can, in most cases, claim back all the VAT payable on the net cost of the asset. (special rules apply to company cars).
3. Fixed repayments enable accurate budgetary and financial control.
4. Economic ownership can help maintain Balance Sheet value, as the assets are ‘on balance sheet’.
5. Particularly effective, with used or long life assets.
6. Documentation and supplier arrangements are relatively simple.

Variations

In certain circumstances, it is possible to fund goods to a fixed future value, this is known as Lease Purchase with a 'Balloon' payment at the end of the term. In this way the repayments are much lower than if the total cost of the goods were funded over the agreement term.
Lease Purchase is also used for business finance where flexible payment profiles are available and more commonly utilised.

Benefits

1. As with all finance options, the finance contract will provide a known term and a fixed payment profile, therefore your capital is conserved for more profitable use elsewhere. Cash flow can be managed by tailoring the financial product to the customer’s requirements.
2. The granting of specific finance preserves the customer's borrowing ability by giving them an additional line of credit.
3. Anglo Finance can offer fixed or variable interest rate agreements, seasonal payment structures and other flexible payment profiles, to accommodate customer requirements that allow, for example commissioning of equipment.

For more information and to contact us click here or call 0870 763 0202

Hire Purchase - Lease Purchase - Commercial Vehicle Finance - Trailer Finance - Light Commercial Finance - Van Finance - Car Finance - Plant Finance - Machinery Finance - Equipment Finance - Asset Refinance - Sale & Hire Purchase Back Facilities