SME leasing offers flexible asset finance funding solutions, including leasing and hire purchase (HP) that will allow SMEs finance assets including cars, commercial vehicles, plant and machinery.
Lease terms are usually between 2 to 5 years and provide the SME with fixed monthly rental payments for the term. In addition payments may be V.A.T. deductible where registered and where applicable.
Leasing is an arrangement whereby the leasing company buys the assets your business needs and leases them to you over a given period (usually 2 – 5 years). In this way you are acquiring the use of the asset without putting your cash flow under extra pressure. At the end of the lease period you can either extend the lease or buy the asset outright (terms and conditions apply).
Hire purchase is an agreement whereby fixed plant / equipment / vehicles are purchased by the leasing/HP Company on behalf of the customer and hired for an agreed term.
On completion of the term, ownership passes to the customer for a nominal sum.
A hire purchase agreement is drawn up and signed by the hirer on behalf Leasing/HP Company.
Terms usually range from 2 – 5 years.
The asset may be purchased for a nominal amount at the end of the agreed term.
Contract hire facilities to SMEs
Contract hire is an arrangement whereby the leasing company buys the vehicles and in turn hires them out to SMEs over a term with an agreed residual value depending mainly on term, mileage / usage and resale value. The key benefits of contract hire are that the monthly payments are fixed, the maintenance contract is optional and there is lower initial outlay/deposit and no depreciation risk on the vehicle for the company.
Rental agreements are leasing facilities available for approved office equipment suppliers to enable SME’s finance photocopiers, printers, telecommunication equipment and business equipment in general.
Leasing facilities for dental and specialised medical equipment is also available.
SMEs arrange finance via their own office equipment suppliers who act as intermediaries with the leasing company.