WHY USE ASSET FINANCE
GET THE RESOURCES YOU NEED WITHOUT TYING UP CASH FLOW
Reduced costs and risks
Investing in new equipment using asset finance could be a more effective way to fund your purchases as well as reduce the risk that can come with ownership.
Capitalise has no hidden-costs and are hassle-free. We're quicker than banks and can find a suitable match for you in minutes.
Asset finance providers often specialise in a particular type of asset about which they have expert knowledge. Capitalise will help you find the most suitable lender for your industry and business.
Asset finance allows you to spread the cost of purchasing equipment with fixed monthly payments with agreements extending up to 72 months.
You can offset your monthly repayment to reduce your tax liability. The cost of renting or leasing an asset is deductible as a business expense, so this can reduce your overall tax bill.
WHO IS ASSET FINANCE FOR?
Businesses looking for flexibility.
Businesses looking to grow.
HOW DOES ASSET FINANCE WORK?
FINANCE KEY ASSETS TO RUN AND GROW YOUR BUSINESS
Almost any asset can be financed ranging from office equipment to machinery or vehicles used for your business. The lenders we work with specialise in the following areas:
asset finance: some key points
Easier to obtain than a bank loan
Use new equipment before paying full cost
Spread the costs for up to six years
Frequently asked questions about Asset Finance
It allows you to use your business capital to expand and make profit for your business. With leasing, you pay for your new business equipment in the same way as you pay your employees. This allows you to save your usable capital and makes budgeting for new purchases easier.
It is possible to join a new lease agreement with your existing lease and determine a new fixed end period. Otherwise your existing lease can be partly settled, providing a flexible way of upgrading without rolling forward debt.
Banks will often fund equipment and machinery; however, they typically provide only short-term and long-term funding - not medium term. Many companies choose to use asset funding to protect their working capital. Cash flow is crucial to every business, so it may be wise to leave headroom for other bank facilities in the future.
The cost of renting or leasing an asset is deductible as a business expense, so this can reduce your overall tax bill. If you expect to own the asset at the end of the lease or hire purchase period, this is considered a supply of goods for VAT purposes and you will have to pay VAT on the entire value at the start of the contract. If you will not become the owner of the asset at the end of the lease or hire purchase contract, this is a supply of services for VAT purposes, so VAT will be payable periodically.
You can claim capital allowances for assets bought through hire purchase as well as assets supplied through long-term lease. You can't claim capital allowances with shorter leases (i.e., less than five years and sometimes less than seven), but the leasing company can, so you should benefit indirectly through lower rental charges. Also, because it's a trading expense, you can usually deduct the full rental costs from your taxable income.