Vendor Finance - Facilities

Also read: Benefits | Mechanics | Criteria | The Process

We have an extensive range of products that will match you and your customers needs.
Depending on your plan of approach, the nature of your asset and the manner of distribution you may be able to offer one or all of the following products;

Hire / Lease Purchase
This is one of the most common facilities used .It is known as purchase credit and is a facility that allows you to spread the cot of goods over a period of time.

Until the completition of the agreement the customer waves all the normal rights of the ownership (VAT Liability, capital allowances etc, etc) except the title which will stay with the funder until the agreement is completed.
Upon completition the customer has nothing further to pay.

Finance Lease
This design is similar to Hire Purchase, but is different in terms of ownership and the resulting tax treatment.

A finance lease has all (or nearly all) the cost of the goods spread over the first lease term. The lender is the owner of the goods and the customer is just renting them. Capital claim allowances cannot be claimed by the customer, but will balance the rentals against the profits.

At the end of the initial period if the customer would like to keep using the product they must pay using secondary rentals at reduced rates,(usually about one months rental per year).

During this time the customer can dispose of the goods (as the funder’s agent) and a refund will be received of the sale of the proceeds. Even though they never owned the asset they will still receive any monies that are from the sale.

Operating Lease
Due to the nature of the goods, we could offer an operating or’ true’ lease product.

It is similar to a fixed term lease; we will initiate into the lease a pre-assessed disposal value arrangement. The customer will then be funding the difference between the cost and the disposal values therefore they will benefit from reduced rentals.

Non Standard Facilities
We also have the capabilities to create a bespoke facility to match the customer’s needs. Certainly the potential for variation is endless, usually they include:

• Seasonal repayment profiles.
• Structured settlements.
• Profile of variable rates.
• Pre- inception credit.
• VAT postponement.

Whats your next step:

You can either use our online enquiry form or
contact us direct for immediate human contact on 0800 0735353.
You are under no obligation and you pay no fees until the commercial finance product is arranged.