Asset Finance is a collective term for a range of different funding possibilities that include:

Hire Purchase

Simply spread the cost of your equipment over a fixed period at a fixed or variable rate. Great for cash flow and great for budgeting.

The hire purchase agreement was developed in the United Kingdom in the 19th century with the main principles still going strong now. You pay a low deposit and decide on the term which gives you the flexibility of the repayment period being matched to the useful life of the equipment. You have a fixed monthly payment and you own the asset at the end of the agreement, which makes budgeting and cash flow easier to maintain.

Finance Lease

If cash flow is a priority for the company paying a deposit along with the VAT upfront can be difficult. Leasing allows businesses to upgrade assets more frequently ensuring they have the latest equipment without having to make further capital outlays. You pay VAT on the rental payments, not the purchase price. You can also normally offset your payments against your taxable profits (please consult your accountant for this).

When the agreement ends the equipment is sold and the funder will pay a set percentage of the sale proceeds back to you. This is usually between 90 & 97.5%

Contract Hire / Operating Lease

Here are several reasons why Contract Hire & Operating Lease work well for certain companies. If the equipment been purchased is purely for business use you can claim 100% of the VAT back. Contract Hire can also include a maintenance package which again you can claim 100% of the VAT for.

As with a HP deal you have fixed monthly rentals which allows for simple budgeting but you have no depreciation risk as the agreement is purely rental so it is not on your balance sheet. This means your gearing will not be affected and you do not have to worry about a re-sale value at the end of the agreement as you hand the equipment back.

Ready to talk?

If you have any questions or a project that you would like to discuss then don’t hesitate to get in touch.

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Why Victor Finance is right for you

As a long standing, family run, commercial lender and Broker, we have a team and an understanding which sets us apart from the rest.

Our Culture

We are committed to customer relationships. We are not a tick box or credit rating company. We are here to support, progress and develop with our customers using transparent processes to get you the best and more importantly, the right type of deal.

Our Team

Every person at Victor Finance is instilled with the philosophy of customer support and company understanding. With years of experience and a multitude of specialties we want to understand the challenges you are facing and the dreams that are driving you to success. We want to be there for it all….

Our Products

With our Own Book Lending and The Brokerage we have an array of straight forward financial products that can alleviate all your financial needs. We have the flexibility to create a bespoke deal that will benefit all facets of your business, not just your simple purchase needs……