Products
We offer two different products: Hire Purchase or Lease. Both will require a form of deposit or advance rental followed by monthly payments over an agreed Term.
Hire Purchase
- VAT on sale to be paid upfront with the deposit.
- No vat on monthly payments
- At the end of the agreement there is an option to purchase fee. If the option is not taken up, the equipment needs to be returned to the lender.
Lease
- VAT on purchase will not be required up front, instead you pay VAT on the advance rental and monthly payments.
- At the end of agreement, there is no option to purchase fee as you do not achieve title of the goods at the end.
- At the end of the primary rentals (set monthly payments) you will be offered to take up a secondary rental payment due annually (this amount is agreed when signing the original paperwork) to maintain use of the equipment or you have the option to find a buyer on behalf of the funder or return the goods.
In deciding which option to select, relevant factors may include:
- How long you expect to use the equipment for.
- The income or corporation tax, VAT and accounting treatment of the product.
We do not advise on any products suitability for your business.
We would
advise seeking advice from approved Accountants and looking at the
government's Leasing and Asset Finance web advice for more details.