Hire Purchase / Lease Purchase

These are straightforward repayment agreements where you ultimately own the asset. The key benefits include:

• Ownership, which generally carries the potential for claiming writing-down allowances and/or capital grants, including enhanced first year allowances.
• The asset appears on your balance sheet.
• VAT on the cost of the asset is generally reclaimable, although special rules apply for company cars.

Finance Lease

These agreements are a popular and flexible method of funding a broad range of business assets. Finance leasing offers all the practical benefits of ownership, without any of the potential burdens. The key benefits include:

• The flexible repayment structure gives you immediate and full use of the asset for a minimal outlay.
• Rentals can be matched to your cash flow.
• Rentals can generally be offset against taxable profit, although special rules apply for company cars.

More Information

To discuss how we can best meet your Commercial Asset Finance needs, please contact:

• Commercial Asset Finance Team
  Tel: +44 (0) 141 221 2422