Our asset financing options, including Hire Purchase and Finance Lease, help you acquire essential assets while optimizing your tax benefits.
With our Hire Purchase option, you not only gain ownership of the asset but also enjoy valuable tax benefits. By paying the VAT upfront and taking full ownership at the end, you can make the most of tax deductions, reducing your overall tax liability and maximizing cost savings.
Finance Lease is designed to support your cash flow needs. By spreading the VAT payments and providing lower initial costs, it's an excellent choice for businesses looking to safeguard their liquidity. The ability to offset lease payments against taxable profits further enhances its appeal as a tax-efficient option.
Whether you choose Hire Purchase or Finance Lease, our asset finance solutions are designed to align with your business strategy. We offer the flexibility to select the financing option that suits your needs and budget. Plus, our end-of-lease choices ensure that you have control over the asset's future, giving you peace of mind and strategic flexibility.
Hire Purchase is a robust asset financing solution that enables you to acquire crucial assets for your business, such as vehicles, machinery, or equipment. This option offers several distinct advantages:
One of the most significant benefits of Hire Purchase is that you gain full ownership of the asset upon the completion of your payments. This means the asset becomes a valuable part of your business assets, which can be particularly advantageous for tax purposes
Unlike Finance Lease, you pay the entire VAT amount upfront with Hire Purchase, allowing you to reclaim it on your next VAT return. This immediate VAT reclaim can significantly benefit your cash flow by putting money back into your business sooner
Monthly payments consist mainly of capital and interest, which means you're paying down the principal amount and gradually building equity in the asset.
Hire Purchase offers notable tax benefits, as your payments can often be offset against taxable profits, reducing your overall tax liability.
At the end of the Hire Purchase agreement, there's usually a minimal option-to-purchase fee to take full ownership of the asset, ensuring that you can secure the asset's value effectively.
Finance Lease provides a unique solution for businesses that require operational control over an asset without the immediate burden of ownership. Here are the comprehensive details
With a Finance Lease, you gain operational control over the asset for a predetermined duration, allowing you to utilize it for your business needs
At the lease's conclusion, you have two options: you can return the asset to the lessor or choose to conduct a passing of title, which depends on the lender. This flexibility ensures that you can align the lease with your business strategy.
Finance Lease offers lower upfront costs because you pay the VAT element monthly instead of upfront. This can be advantageous for businesses looking to safeguard their cash flow and avoid a substantial initial payment.
Similar to Hire Purchase, Finance Lease provides tax benefits, as lease payments can often be offset against taxable profits, reducing your overall tax liability.
If you decide to take ownership of the asset at the end of the lease, this usually involves making additional payments, typically ranging from 1 to 3 months' worth of payments. This ensures a smooth transition to full ownership.
Acquire Capital Ventures Ltd (FRN No: 1003889) are an appointed representative of Alpha Asset Finance Ltd who are authorised and regulated by the Financial Conduct Authority (FRN No : 804584). We are a credit broker and not a lender and work with a panel of lenders from whom we will typically be paid a commission for effecting the introduction. The amount we receive could vary by lender and may be a higher amount in relation to certain products compared with other products available. The payment received may also be higher dependent on the interest rate you are charged and this can also be affected by the term and product you receive. Typically commission received is a fixed fee or a percentage of the amount you borrow. We will not charge you a fee for our services. Registered address Handels Cottage, Twycross Road, Bilstone, Nuneaton, CV13 6ND. NACFB Membership number: M/0015/20. ICO number ZA446835.
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