Hire Purchase / Lease Purchase
Enables customers to spread the cost of their investment and also allows the customer to gain title at the end of the agreement, either automatically or on payment of an option to purchase fee. The agreement is usually arranged over a fixed period and with fixed repayments secured on the products being financed. For tax purposes, from the beginning of the agreement the business customer is considered as the owner of the equipment and can therefore claim capital allowances.

Finance Lease
Finance Lease is similar to Hire Purchase, the full cost of the equipment is recovered over the lease period. Although the customer does not own the equipment, they are responsible for maintaining the asset and can deduct the full cost of lease rentals from taxable income, as a trading expense. When the lease period ends, the the customer can agree to a secondary lease period with significantly reduced payments. Alternatively the asset may be sold to a third party.

Operating Lease
An Operating Lease facility conserves working capital by providing off balance sheet funding and rentals based on the planned economic use, rather than the life of an asset. It allows full use of an asset whilst paying rentals during the agreed period which is usually for two or three years but can be much longer, with a residual value at the end of the agreement therefore an Operating Lease does not need to recover the full cost of the equipment through the lease rentals. It may also be possible to extend the rental agreement at the end of the primary term before finally returning the asset.

Contract Hire
Contract Hire is a tax efficient form of operating lease usually used for financing vehicles off the balance sheet and removing the risk of depreciation. It gives companies use of the vehicle for a fixed period between 24 and 60 months. Agreements can include maintenance so that companies can fix the running costs of their vehicles.

Sales and Lease Back
Sale and Leaseback enables companies to finance existing assets and release working capital without the need to dispose of them. We can provide upto 100% funding against asset valuations and agreements are arranged over fixed period of time in line with the economic life of the asset.