- Easy online application, apply for finance in minutes
- Receive two competitive quotations from approved lenders
- Repayment periods from 1 month to 60 months
- Finance available from £5,000 to £150,000
What is Equipment & Vehicle Leasing?
Leasing is a lending facility that gives you immediate access to essential equipment needed in order to grow your business. The lender buys the asset you need, and then rents it to your business on a lease. This means that you are able to obtain the asset immediately without the pressure of any major upfront costs. Your business will usually be expected to pay the first month’s rent in advanced.
At the end of the agreed lease period, you can either:
- Continue leasing the item on an indefinite period
- Buy the asset from the financier at an agreed price (Taking into consideration money already spent)
- Return the item to the financier and terminate the lease
- Upgrade to a new piece of equipment on a new lease
Leasing for many businesses is a great form of financing assets as it allows them to spread the cost over a longer period of time, thus ensuring the cash within the business is used most effectively and not tied up and slowing growth. It also allows the company to quickly adapt to change. For example; a transport company gains a new contract requiring a new vehicle. With a relatively small amount of cash for the first rental, they could see the quick delivery ensures the new contract can be fulfilled.
- It’s possible that an asset valuation may have to be carried out by an independent surveyor which may incur a small cost to the business, this is to ensure the true value against which the funder is able to lend
- Generally the item should be removable and clearly identifiable, so it can be taken as security for the loan
- The finance is secured against the physical asset, providing the lender with the reassurance that if things go wrong and you can’t keep up with repayments, they can take the asset to recoup their losses
Why use equipment & vehicle leasing?
- It provides the business access to equipment needed without incurring the cash flow pressure of an outright purchase
- Fixed price rentals make budgeting easier
- Enhanced cash flow with the ability to spread the VAT across the term of the facility
- Ability to offset the lease repayments against any taxable profits
Does my business qualify for finance?
The following is a brief guide to the acceptance criteria for finance but is not a guarantee. All circumstances will be considered and an assessment will be made on an individual case by case basis.
- Business to be trading for a minimum of two years
- The business is profitable
- No legal notices or insolvency proceedings
- Defaults must be over two years old and not more than £1,000 in value or a reasonable explanation must be provided/evidenced
- Be a registered business within the UK
- UK homeowner (Minimum of one director)
- The loan amount is less than 25% of the business annual turnover (Revenue and Turnover will be assessed to confirm affordability to this level)
What will we need to provide?
Firstly the online application will need to be complete. Once this has been done you will need to send the following information to
- The last three month’s bank statements
- The last full set of financial accounts
- Balance Sheet and Profit & Loss
- Draft accounts (if the full year end accounts are over 12 months old)
- All directors to complete an asset and liability statement (Click to open and save)
How do I know if this facility is right for my business?
From the above information, you should be able to establish if this is the best product for your business, but we would always encourage you to discuss all options with your accountant to ensure you make the most of your working capital.