Asset Finance.

A flexible approach to funding, asset finance gives your business access to the equipment, vehicles, plant and technology it needs to perform and grow, without compromising cash flow.

It can be used for both new and second-hand assets, or as a mechanism for releasing the value from those you already own.

Over the past few years, asset finance has become the fastest growing finance option for businesses of all sizes, across all industries.

Asset finance is a collective term for a range of funding solutions.

Yorkshire Offices and Boats

Hire Purchase enables you to acquire an asset while paying for it in instalments over an agreed timescale – the term. At the end of the term, you have the option to purchase the asset outright.

It lets you spread the cost of your investment over the life of the asset, making it easier to budget. Hire Purchase is particularly suitable for acquiring vehicles, machinery, construction and commercial equipment with a resell value.

Benefits of Hire Purchase:

  • More time to repay – Spread the cost over the life of the asset
  • Seasonality – We can structure repayments to take account of seasonal fluctuations in your cash flow
  • Keep control – You are the owner of the asset for tax purposes and can normally claim capital allowances
  • Tax efficient – You can offset your hire purchase interest and charges against pre-tax profits
  • Reclaim VAT

Refinancing (Capital Release) is a quick way to access the cash from your assets on your existing balance sheet and use that value elsewhere within your business – for example, to fund a deposit on new equipment or ease cash flow.

Sale and HP Back is a form of refinance that can be used against most types of equipment, making it suitable for companies of all sizes, including sole traders. It works by us purchasing the asset and financing it back to you. Repayments are calculated in line with the income stream that will be generated by the asset and at the end of the refinance term, you own the asset.

This option applies whether you already own the asset or are using it under a finance deal with another provider.

Benefits of Refinance / Capital Release:

  • Efficiency – Uninterrupted use of the asset
  • Spread the cost further – We can take over the finance agreement you have with another provider and extend the term
  • Choice – Give your business a cash injection or use the money to buy other assets that may not be accessible through hire purchase or leasing agreements
  • Make fast decisions – Releasing capital can help you make faster decisions when negotiating business contracts

Finance Lease arrangements let you use the equipment you need without having to buy it outright.

You pay us rent for the full use of it. The rental period is flexible and can be tailored to your needs and cash flow. During this period, you will pay us the full cost of the asset, including interest. Then, when you reach the end of the primary lease term you can choose to:

Continue to use the asset by entering a secondary rental period

Sell the asset and keep a portion of the income from the sale

Return it to us

Benefits of Finance Lease:

  • Efficiency – Uninterrupted use of the asset
  • Spread the cost further – We can take over the finance agreement you have with another provider and extend the term
  • Choice – Give your business a cash injection or use the money to buy other assets that may not be accessible through hire purchase or leasing agreements

Similar to a Finance Lease, an Operating Lease allows you to rent the asset from us while you need it. The key difference between the two is that an Operating Lease is only for part of the asset’s useful life. This means you pay a reduced rental because the cost is based on the difference between the asset’s original purchase price and its residual value at the end of the agreement.

You get full use of the asset for as long as you need it, without the burden of responsibility of disposing of it or recouping its residual value.

Benefits of Operating Lease:

  • Low initial outlay – Quick access to the asset you need without a heavy upfront investment
  • Freedom – Full use of the asset without having to buy it outright
  • Flexibility – Option to re-rent, purchase or return the asset at the end of the term
  • Pay less – Rental cost is reduced as it is based on a percentage of the original capital cost
  • Off balance sheet funding
  • Reduce costs – Reclaim VAT on rentals