Equipment finance & leasing for small and medium-sized businesses is easy to access, and we recently helped a Poole based company who wanted to finance the acquisition of a new Fork Lift.
The client wanted a cash flow friendly solution, and a low deposit was key to meeting their needs. We agreed with the client a finance lease would be ideal; the VAT element of the Fork Lift could be avoided. The client contribution involved 6 rentals and the VAT on those rentals, as opposed to all the VAT being payable on the cost as per Hire Purchase. This gave the client the lower initial outlay they were looking for.
We have access to a finance lease product that fitted the requirements of the client, and we could pass the title in the Fork Lift back to them at the end of the lease. Our standard credit process was used, with lease documentation being signed and funds remitted to the supplier prior to the Fork Lift being delivered. The cash flow the client contributed to the lease at the outset was minimal.
Think of finance & leasing as types of loans, these loans fund the equipment, machinery or vehicle you want working in your business.
Equipment Finance is another name for hire purchase (known as HP). Its a form of loan, where you put in a little (the deposit) and the lender provides most of the finance. Normally its 10% from you, 90% from the lender.
Select the equipment you need, we get the finance in place having worked with you to tailor the finance to what works for your business.
The supplier raises an invoice, the lender settles the invoice on your behalf, you take delivery of the equipment. A simple HP document is agreed and signed, it’s the loan document the lender and you refer to.
Equipment Leasing works along the same basis, its more VAT friendly as the deposit doesn’t require all the VAT to be paid, its charged on the rentals. Talk to us about equipment leasing, it works for many businesses.
We are continually being told of the importance of this type of investment, and the Government are currently offering substantial tax based incentives for companies to spend on equipment. The main current incentive is the Annual Investment Allowance, and for companies paying corporation tax of 20%, this means a reduction in your corporation tax bill. Put simply, a £20,000 investment in equipment could mean your corporation tax bill reduces by £4,000
Another often used business phrase is “cash is king”, the argument here is keep your cash intact, leave it within the business, and borrow cheaply from other sources.
Well, if you agree with this, then equipment finance and leasing is the ideal method to achieve this.
We arrange finance for those assets that will work within your business for many years.
The application process is straightforward, we use a simple one page proposal form, a set of accounts may be helpful in some circumstances.
The Banks may have been slow in lending, but HP and leasing has always been available.
Our clients have benefitted from access to equipment & machinery financing, we welcome you to join them.
Our main client base covers our local business centres of Bournemouth, Poole & Dorchester in Dorset; Yeovil & Somerset; Salisbury & Wiltshire; and Portsmouth & Southampton in Hampshire, but we are happy to offer Equipment Finance & Leasing to businesses throughout the UK.
Contact us today for a free quote.