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Hire Purchase Asset Finance
Leodis Financial provides asset finance and asset refinance for a wide range of both new and used assets
Our service allows you to lock in the price of an asset and spread the cost over time.
Leodis Financial provides asset finance and asset refinance for a wide range of both new and used assets
WHAT IS HIRE PURCHASE FINANCE?
Hire purchase finance is designed to ensure a steady cash flow, rather than making one large capital outlay.
Businesses who want to maximise capital investment while staying on restricted budget use hire purchase finance.
“Our service allows you to lock in the price of an asset and spread the cost over time.”
After you’ve chosen the equipment and supplier, the lender will purchase it on your behalf. You can then use it right away while paying in monthly instalments that are easy to handle. When all funds are collected, ownership of the property is automatically transferred to you.
Hire Purchase allows you to spread the cost of an asset over a longer period of time, eventually granting you ownership at the end of the payback period.
Rather than making a single significant capital payment, hire purchase finance is designed to provide a consistent cash flow.
After all payments have been made, including the option to purchase charge, the business becomes the owner of the equipment with hire purchase finance agreement.
The client is treated as the owner of the equipment for tax purposes from the start of the agreement, allowing them to claim capital allowances. The client will be responsible for the equipment’s upkeep and insurance.
The following are some of the benefits of a hire purchase agreement:
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Improving the company's balance sheet:
Hire purchase finance is for businesses who want to keep the asset/vehicle as an asset at the end of the contract. Assets that are funded in this way can appear as a balance sheet item, allowing you to deduct the value from taxable profits. -
Cash flow:
Buying assets outright can put a strain on cash flow, but hire purchase allows you to spread the expense over a specified period based on the asset's life. -
Ownership of the asset:
Once you've paid the option fee and/or the balloon payment, the asset/vehicle is yours. -
Reclaimable VAT:
Hire purchase agreements assist firms estimate cash flow because they have fixed interest rates and monthly payments. The company can compare the payments to the predicted revenue and profits generated by the asset's use. -
If the client is a VAT registered business:
The total VAT on assets utilised for commercial purposes can be reclaimed. -
Optional balloon payments:
At the end of the arrangement, a 'balloon' rental can be arranged, allowing for cheaper monthly payments -
Speed:
Get access to equipment right away without having to pay a lot of money up front. -
Cost Effective:
Hire purchase, based on a discounted cash flow analysis, can be a more cost-effective option to making a full-price purchase with cash. -
Flexibility:
Both the deposit quantity and the term length are flexible. -
Convenient:
Pay in easy-to-manage instalments over a set length of time. -
Wide Options:
A wide choice of equipment is available from garages and home improvement stores, IT equipment, cars, LED lighting, and medical equipment are just a few examples.
Contact Us Now.
“Asset finance is a type of financing that allows companies to acquire the equipment they need to expand.”
We recognise the value and power of asset finance to your company.
Gone are the days when your local bank manager decided your financial future. Today, there is a plethora of financing options available for you to search with Leodis Financial.
At Leodis Financial, we work hard to understand your needs and develop the best asset finance solution possible for your company. Our creative approach can help you uncover the value of current assets and free up funds to invest in your company’s growth.
Asset finance agreements are frequently tailored to the specific needs of businesses, allowing for flexibility in terms of the period you’d like to pay the loan over and the repayment schedules amount.
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Providing firms with access to critical equipment without the cash flow implications of a full purchase.
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It can boost a company's financial value by supplementing cash resources and existing bank credit lines.
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Specific types of asset finance, such as leasing and hire purchase, are frequently regarded as excellent budgeting tools because payments are typically fixed, allowing for better cash flow management.
Why Choose Leodis Financial?
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We blend financial knowledge with real-world experience.
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We can find the best options for you and adjust them to your needs.
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We make it as simple as possible for you to invest in your business.
Call us on:
01274 028 019
01274 028 019
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