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Fixed rate Hire Purchase lets you fund a business asset over a term of 12-84 months depending on the asset type and the repayments include both capital and interest.

The interest rate used is fixed for the finance term to make budgeting and managing your cash flow more predictable.

Repayments can be made either monthly or quarterly and can be structured on a seasonal repayment profile to meet the peaks and troughs of your cash flow.

Title to the asset passes to the hirer on receipt of the final rental payment.

Key Benefits

• Fixed monthly or quarterly repayments
• Fixed rate of interest
• VAT element of the acquisition can be reclaimed via HMRC (See VAT Deferral Section)
• Seasonal repayment options
• Tax benefits of ownership

This short term loan can form part of a Hire Purchase agreement and is used to assist cash flow by funding the VAT element of your acquisition. This agreement is usually financed for a maximum period of 3 months to coincide with your VAT return and is repaid in full once the VAT has been reclaimed from HMRC.

A Finance Lease is a rental agreement for the use of a business asset.  Periods vary from 12-84 months on a fixed monthly rental.

At the end of the primary rental period the equipment can be either:

Returned to the finance company.

The rental agreement can be extended to allow continued use of the asset.

The asset can be sold to an independent third party and the sale proceeds are refunded to the hirer.

Key benefits

• VAT is payable on each rental and paid throughout the term of the agreement
• The equipment can be returned and the end of term with no further liability

This type of agreement allows you rent a business asset at a reduced fixed monthly or quarterly rental without the associated cost of depreciation. Title to the equipment remains with the finance company and at the end of term the equipment subject to the agreement can be either:

Returned to the finance company.

The rental agreement can be extended to allow continued use of the asset.

The equipment can be purchased at fair market value.

Key benefits

• The rentals are calculated including a residual value
• The liability can be charged to profit and loss and may be treated as “off balance sheet”
• Subject to your tax status the rentals can be offset against taxable profits

This facility can be used to reduce the monthly payments on an existing finance agreement to help reduce the impact of a new investment.

A re-finance facility allows you to generate working capital to be used for a particular project. This type of facility can be used to fund a machine deposit or assist with infrastructure costs that are often incurred when making a significant investment.

You can refinance an unencumbered asset or one on an existing finance agreement.

Examples for this type of facility include:

• Reducing existing payments
• Raising working capital
• Funding restructuring costs
• Finance a new investment
• Funding Company Mergers / Acquisitions

Please speak to one of our specialists who can guide and support you throughout this process.

This type of loan can be structured over a fixed period and is generally used for a project that cannot be funded on a traditional asset based agreement.

Examples of this would be the funding of Computers / Software and Mezzanine Floors.

As an alternative to overdraft facilities Confidential Invoice Finance uses the sales ledger invoices to provide cash flow for working capital.