There are four main forms of asset financing that we can offer our customers:
Finance leasing is a long-term lease over the expected life of the equipment, usually, three years or more, after which you pay a nominal rent or can sell equipment if the company doesn’t want the equipment back.
Hire Purchase enables a business to acquire the assets they need where the Finance Company purchases the equipment on behalf of the Lessee. The Lessor owns the asset until the final payment is made and at this point, the Lessee is given an option to purchase the asset for a minimal sum. During the length of the agreement, the full value of the Asset appears on the Lessee’s balance sheet as an asset and liability and an element of the rental treated as a business expense and passed through the profit and loss account.
Operating Lease is useful if you don’t need the equipment for its entire working life. Meaning, we will take the asset back at the end of the lease and we would be responsible for maintenance and insurance. In addition, you don’t have to show the asset on your balance sheet
Occasionally some customers may only require a short payment period. In these situations, a loan product is needed. Loan products can be tailored to meet a customer’s requirements with terms from 3 to 12 months.