Vehicle & Asset Finance solutions | Hire Purchase | Lease Purchase | Contract Hire | Finance Lease | Commercial Loan | Operating Lease

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 Asset Finance | Hire Purchase | Ignition Credit Plc

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