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Asset Finance

Asset finance is a business finance tool used to either buy equipment your business needs or to raise cash from assets you already own. Asset finance is great for businesses who want to put their growth plans into action but recognise cash can be better utilised elsewhere in a business. Funding equipment means you can keep cash usable in your business rather than tied into an asset.

The funder buys the asset for the customer. At the end of the term and once all the payments have been made, title for the asset passes to the customer, who will then own the asset, unlike a lease. VAT is payable upfront or subject to approval, but can be deferred for up to 4 months, which is a great way of managing your cashflow.

BENEFITS

✓ Simple product to achieve ownership.
✓ Tax advantages as you can reclaim the VAT.
✓ Plus you may be able to claim capital allowances and offset repayment interest against pre-tax profits.
✓ Seasonal & staged payments available to help structure deals to match you cash flow.

The funder buys the asset you need, and rents it to you on a lease. At the end of the term you can continue to use the asset for a reduced rental, sell the asset and keep a proportion of the sale value or return it to the funder.

BENEFITS

✓ Low upfront cost as the VAT is payable over the term
✓ Tax efficient as rentals can be offset against pre-tax profits.
✓ VAT can be claimed back on monthly rentals.
✓ Off balance sheet funding

Much like a Finance Lease, an Operating Lease allows you to rent the asset from the funder. The difference being you pay a reduced rental as you only rent the asset for some of its useful life. The funder agrees to a residual value for what the asset will be worth at the end of the agreement. Your rentals are based on the cost difference between that and the purchase price. You can at the end of the term, rent, purchase or return the asset.

BENEFITS

✓ Off balance sheet funding
✓ Reduce rentals
✓ Low initial cost outlay

The Process

  1. Step 1

    Quote

    We quote the customer giving you an indicative idea of pricing. Each quote is subject to approval.

  2. Step 2

    Propose

    We collect all the data from your business and the supplier to submit the deal to the funder.

  3. Step 3

    Decision

    Decisions are typically given within 48 hours providing all the information required has been submitted.

  4. Step 4

    Terms Agreed

    Should we manage to gain an acceptance for your deal we will provide confirmed terms. You can then decide if you wish to proceed.

  5. Step 5

    Invoice

    We raise an invoice from you or the supplier for your equipment so it can be paid for.

  6. Step 6

    Document Signing

    We complete all documentation with you, talking you through the contracts you are signing.

  7. Step 7

    Payout

    Funds are released to you or the supplier for your asset.