Asset finance and leasing
Many business owners do not want to tie up their cash in vehicles and equipment purchase. Therefore, using asset finance and leasing could be good options. To be eligible, the asset being financed must be mainly for business use.
Vehicles and equipment that can be considered for financing include:
• Passenger cars
• Light commercial vehicles
• Heavy vehicle trucks and trailers
• Yellow goods including forklifts and excavators; construction vehicles and equipment etc.
• Manufacturing plant and equipment
• Electronic and IT equipment
Equipment finance options include Financial Leasing, Operating Leases, Commercial hire purchase, Chattel Mortgages etc. Each is suitable for different commercial circumstances. Below is a summary of some options.
• Lessor purchases equipment and leases back to the lessee.
• Lessee (the client) makes a rental payment.
• Rent payments are usually tax deductible.
• This enables the client to lease equipment without bearing any associated risks.
• The lessor retains ownership, the client has full use of the equipment and pay monthly repayments.
• Rent payments are tax deductible.
Commercial hire purchase
• This is a hire agreement between the lessor and the hirer (the client) with an option for the client to buy the goods at the end of the term for a nominated amount.
• The lessor owns the goods.
• The client may claim depreciation on the goods and interested payment.
• At the end of the term, the equipment must be returned to the lessor in good condition.
• This provides finance for businesses to purchase goods such as motor vehicles, trucks, industrial plant etc.
• The business owns the title, interest and depreciation can be claimed.
At Mortgage Options HQ, we have access to a range of specialized lenders in asset finance and leasing and that means we can tailor a competitive finance solution to fit your business needs. That could be secured finance, unsecured finance, or other finance options. Your full financial situation will need to be reviewed prior to acceptance of any offer or product.