Hire Purchase
Hire Purchase is a traditional and flexible way of financing an asset.
Hire purchase allows the customer to purchase the asset outright by making a fixed monthly payment over a pre-determined length of time (3, 4, 5 years or more). The finance company owns the asset throughout the hire period and when the final instalment is paid, the customer is given the option to purchase, usually for a nominal sum.
Minimum deposit is usually the full VAT associated with the purchase, although in some cases VAT deferrals are also considered. In the wider commercial vehicle and machinery finance market, more than 58% of debt advanced for asset purchases was through Hire Purchase (FLA, 12 months to August 2019), and it continues to be the most popular method of funding for business, with fixed repayment, and the security of ownership at the end of the term.
Operating Lease
Operating Leases are a popular funding method particularly in haulage and commercial vehicles. Operating Leases are rental agreements where the hirer rents a vehicle or machine and hands back the asset at the end of the contract.
The benefit of an operating lease is that you just hire the asset for a set period of time. The downside is you have dilapidation charges and won’t ever own the asset.
Finance Lease
A finance lease is the most cash efficient finance facility as the vat on the capital cost is repayable over the length of the agreement rather than being paid up front as part of a deposit.
A finance lease is a rental agreement but nowadays most funders will allow you to acquire the asset at the end of the contract period should you wish to.
Cashflow Finance
Cash is king and often cashflow is the main concern of any business owner.
Many funders will consider capital release from existing machinery to support cashflow - this is sometimes known as refinance. Funders will advance a percentage of the values of the assets offered as security on a finance agreement.
Unsecured cashflow loans may be a useful way to support business cashflow, or there are often invoice financing options available to certain businesses.
Industries We Specialise In
Asset and General offers a wide range of financial services tailored to meet the diverse needs of clients across various industries. Specialising in a range of Financial solutions, the company helps with the acquisition of cutting-edge equipment essential for sustainable energy production. With a focus on transportation, the company also supports vehicle purchases for both commercial and personal use. Additionally, Asset and General assists the forestry and agriculture sectors by funding the procurement of essential machinery and equipment crucial for efficient operations. Through tailored financial solutions and industry-specific expertise, Asset and General empowers businesses across multiple sectors to succeed in their endeavours.