Finance & Leasing
With our own in house expert, we can tailor a finance or leasing package
to your individual requirements, with flexible deposits and payment
terms. We have access to all of the UK’s finance houses and will
match your funding criteria with the right bank to give you the best
available deal.
Hire Purchase
The traditional and most common way to finance equipment. The finance company funds the purchase and you repay over a term of your choosing, usually between one and seven years. At the end of the term you will own the asset. Repayments can be made with fixed or variable interest rates and the deposit payable can be flexible also. The VAT is normally paid in full at the point of signing the finance agreement. Capital Allowances can be claimed when funding via Hire Purchase.
Finance Lease
The least common way to fund equipment as you don’t own the
equipment at the end of the term or have the tax benefits available
with an Operating Lease. The finance company purchase the asset
and lease it back to you over a fixed term of up to seven years.
At the end of term you can either extend the rental period, or return
or re-sell the goods (whilst retaining only a portion of the proceeds).
Operating Lease
Traditionally used by larger companies for ‘off balance sheet’ funding,
this is becoming more popular now especially in light of the new ‘Annual
Investment Allowance’ introduced in April 2008 to replace
the traditional Capital Allowance system. Teupen equipment is especially
well suited to Operating Lease due to unusually high residual values.
With this facility, the rental payments cover depreciation and interest
only, therefore monthly rentals are generally lower than with Hire
Purchase. At the end of the term the equipment is returned, as you
don’t have the option to re-sell them. You do receive the
benefit of allowing all rental payments to be written down against
taxation.
*before making any decisions on how to fund your acquisition, we recommend you seek the advice of a qualified accountant who understands your business in order to select the most effective option for you.