What is the difference between lease and hire purchase?
On a lease agreement VAT is payable with each rental and ownership is not automatic. On a hire purchase agreement the VAT element on the cash price is paid up front to the finance company and no VAT is added to the rentals, title is passed with the final rental at an additional payment of £250. You may use the hire purchase agreement as proof of the VAT for your return.
You should seek advice from your accountant as to which option is best for your business.
What are the benefits of using asset finance for my equipment?
Cash is king – keep valuable cash in the business for working capital or unexpected expenses and spread the cost. This also enables you to budget more effectively and plan long term for your business.
What happens at the end of the agreement, do I own the equipment?
Hire purchase agreements include a term which says you have the option of becoming owner for a nominal sum, this sum is paid at the end of the agreement. When you lease or rent the equipment you will not normally become the owner. We can arrange to pass title to you, please discuss with your account manager at Basingstoke Business Finance.
What information will I have to provide to get the finance agreement?
Once you submit the application form here, our team will be in touch to request the following information:
- Three full sets of filed accounts
- Most recent three months’ bank statements
- A personal guarantee may be required, therefore permission to perform a credit search will be needed by each director.