
Finance

Finance Options Available!
Finance is provided by First Capital Finance Limited who are authorised as both a broker and a lender under the Financial Conduct Authority. FRN 679066. All finance is subject to terms and conditions and may also be dependent on satisfactory credit and personal checks.

Hire Purchase (or Lease Purchase)
Hire Purchase (or Lease Purchase) can be used to purchase new or used equipment. Your business essentially hires the asset over the contract period and once the facility has been paid off, your business becomes the legal owner of the asset with title to the equipment.
Benefits of hire purchase
- Rather than paying outright, a business can spread the cost of the purchase over a 2 to 5 year period.
- Helps preserve cashflow, as large purchases are spread so it makes them more affordable.
- Flexibility, you can choose a fixed term and deposit to suit.
- You will own the asset and title to the equipment after payment of the final instalment.
- It typically goes on your balance sheet as an asset of the company.
- It is possible to claim capital allowances against tax (but please refer to your business tax advisor).
- Hire Purchase agreements can be paid off early, depending on the customer and the contract.
- VAT deferrals are available for certain transactions, so there is less of an impact on cashflow.

Finance Lease
This is a type of lease in which the finance company is typically the legal owner of the asset for the duration of the lease.
A Finance lease is a full-payout, non-cancellable agreement, in which the lessee is responsible for maintenance, taxes, and insurance.
While the lessee not only has operating control over the asset, they also have some share of the risks and returns from the increase/decrease in the valuation of the underlying asset. At the end of the primary lease period, the customer will have the option of either peppercorn renting the machinery for a further period, or selling the asset to an unconnected 3rd party and then keeping 95% of the sale proceeds. Vat is spread throughout the term of the agreement.