Asset Finance > Products

Hire Purchase

• Customers pay an initial deposit, followed by periodic instalments over a set period of  time.
• Interest can be fixed or variable.
• Legal title is passed to the customer once all payments have been made.

Benefits

• Reduces capital outlay.
• Writing down allowances can be claimed against taxable profits.
• Interest charges are tax deductible.
• Asset can be shown on balance sheet.
• Ownership.

Finance Lease

• A rental facility whereby the lessor retains title to the asset.
• The customer's payments are subject to VAT.
• At the end of the primary period, the customer has the option to enter a secondary period or dispose of the asset.

Benefits

• Improved cash flow, as VAT is paid on purchase price by lessor.
• Rentals are tax deductible (may be restricted depending upon asset type).
• VAT can be reclaimed on rentals.
• Shown on balance sheet.
• Fixed monthly costs.

Commercial Loan

• A conventional loan agreement which can be unsecured or secured using
   a 'Chattels Mortgage'.
• Repayments are usually fixed over periods up to 5 years.

Benefits

• Easy paperwork.
• Can be used for assets which normally afford no security i.e. software etc.
• Shown on balance sheet.
• Customer retains title.

Operating Lease

• A rental agreement whereby the end user has no rewards or risk associated with
   ownership, the customer pays an initial rental, similar to a deposit.
• Repayment periods are fixed, usually with a usage clause written with the    agreement i.e. mileage p.a. or hours run p.a. etc.

Benefits

• Fixed budgeting.
• Rentals can be tax deductible (restrictions on cars).
• Improved cash flow as rentals are normally lower than conventional funding.
• VAT can be reclaimed on rentals.
• No disposal worries.
• Off balance sheet.

 Whatever you are financing ...

       ... choose Ignition Credit