Both leasing finance and hire purchase finance are forms of commercial asset finance. They are popular sources of finance for businesses wishing to acquire or refinance:
• Other capital assets.
What can I finance?
• Cars and vans.
• Printing equipment.
• Computer/technology equipment.
• Heavy plant (Diggers, earth moving equipment, cranes).
How leasing finance works
Your leasing company will buy equipment on your behalf. You will then pay a monthly or quarterly rental for the use of the equipment. At the end of the lease period, you will have 2 options:
• Pay a nominal rent to continue using the equipment.
• Return it to the leasing company.
How hire purchase finance works
Hire purchase finance generally suits businesses needing to use and own a particular asset, but wanting to pay for it over a fixed period. At the end of the contract period the asset will belong to the business, and the business can continue to use it or sell it. The choice is yours.
Tax benefits of commercial asset finance
Paying out large lump sums is often not the most effective way of financing the purchase of equipment. Business loans can be expensive. However the tax benefits of leasing and hire purchase are clearly outlined by the Inland Revenue.
• You can get tax relief on leasing rentals.
• Claim back all the VAT under a hire purchase agreement.
• Get capital allowances on hire purchase.
A source of business finance that also offers cash flow benefits
• Fixed monthly payments allow you can manage your cash flow.
• You can obtain equipment immediately without compromising your businesses cash.
How much does leasing/hire purchase finance cost?
This will depend on the value of the asset, the nature of the agreement and the length of the agreement.
Working with you to find business financing options most appropriate for your business.
Save time and money by letting us find best and most cost effective business finance package for your organisation.
The Business Bureau has vast experience in all forms of commercial asset finance.
Contact us now for a leasing/hire purchase finance quotation. We would be delighted to discuss your individual business requirements further.