Direct Asset Finance Ltd
Maxet House
28 Baldwin Street
Bristol
BS1 1NG
Tel:
0845 833 4771
Fax:
0845 833 4772

Direct Asset Finance
Types of Finance

Hire Purchase

Hire purchase, also known as lease purchase is a repayment facility, where you own the asset at the end of your agreement:-

  • Fixed or variable interest options - you decide which best suits you or your business
  • Flexibility - repayments can be tailored to suit the income stream of your business
  • Tax advantages - you can claim writing down allowances and perhaps capital grants, whilst repayment interest may be offset against profits and VAT is usually reclaimable (special rules apply to cars)
  • Total control - you own the asset at the end of the agreement

There is great flexibility with this type of asset finance. We can arrange to structure the agreement in various ways, with a flexible deposit, fixed payments and perhaps a balloon final payment.

Finance Lease

The benefits of ownership with fixed rentals:-

  • Low up-front costs - for a small initial outlay, you can use the assets immediately
  • Flexibility - rental payments can be tailored to match the income stream of your business
  • Fixed or variable interest options - you decide which best suits you or your business
  • Tax advantages - VAT is payable on the rentals, not the purchase price, while payments can normally be offset against taxable profit (special rules apply to cars)

Monthly rentals can be matched to your cash flow. At the end of the Finance leasing agreement, the assets are sold and you receive the major share of the proceeds. As the asset owner will be the finance company, they will claim the available writing-down allowances and reflect this in your monthly rentals. Another option is to pay a secondary period rental for each subsequent year you wish to use the asset.

Sale & Leaseback

With sale and leaseback, you can immediately free the capital tied up in your assets. You get cash injected straight into your company's working capital:-

  • Increased company cash flow - the cash released goes directly into your business
  • Fixed monthly payments - simplify your budgeting
  • Flexible terms - choose from 2 - 5 year repayment terms

If you have purchased equipment outright but now feel the capital could be put to better use elsewhere, we can arrange up to 100% finance against assets less than 3 months old. We can also arrange advances against older assets depending on circumstances.

Operating Lease

This option is worth considering for specialised and higher value assets. The finance company own the asset throughout the agreement and take the risk of it losing value. Meanwhile, you get the full use of the asset:-

  • Fixed costs - for a set sum you can use the asset immediately
  • Flexibility - rental payments can be tailored to match the income stream of your business
  • Fixed or variable interest options - you decide which suits you or your business
  • Off-balance sheet - check with your auditor about this business advantage
  • Tax efficiencies - VAT is reclaimable on the rentals, while payments can normally be offset against taxable profit (special rules apply to cars)

The finance company build in a residual value that reduces your monthly rentals. This type of leasing instantly aids your cash flow and makes 'off-balance sheet' funding possible. In effect, you can match your fixed rentals to your income - particularly helpful for seasonal businesses.

Contract Hire

Car or van contract hire could prove ideal for your business. You can focus on core activities, by fixing your costs and avoiding the burden and risk of owning your own vehicles:-

  • Fixed monthly payments - simplify your budgeting
  • Flexible agreement terms - variable terms and mileage
  • Vehicle maintenance option - include servicing and maintenance to your rentals and help spread the cost
  • Eliminate risk of depreciation - at the end of the agreement, you simply hand back the vehicle, subject to return conditions and excess mileage

For a fixed monthly sum, all costs except fuel and motor insurance can be taken care of in your agreement, including servicing, tyres, even the tax disc. At the end of the agreement, you simply hand back the vehicle.

 

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