Financial Products & Services From First Capital Finance
Hire Purchase
The customer selects the supplier of the asset and negotiates directly the specification and price. An initial deposit plus the full VAT, if applicable, is paid leaving the balance to be spread over an agreed term, typically 1-5 years. The finance company pays the supplier directly. Once the customer has paid the required regular repayments the ownership is transferred to the customer.
On all hire purchase agreements the asset is included on the balance sheet and depreciation and capital allowances are accounted for as if the asset were purchased.
The Benefits of Hire Purchase
- The equipment is owned at the end of the agreement.
- Existing bank credit lines are not tied up.
- The agreement can be settled at any time.
- Rentals can be monthly, quarterly or seasonal.
- There are both fixed and variable rate schemes available.
- Hire purchase is suitable for both businesses and private individuals
Finance Lease
The customer selects the supplier of the asset and negotiates directly the specification and price. An initial payment or advance rentals are paid leaving the balance, plus interest, to be spread over an agreed term, typically 1--5 years. The finance company pays the supplier and leases the asset to the customer under the terms of the finance agreement. VAT is payable on the initial payments and all rentals.
The customer is not entitled to become the owner of the asset at any time but is entitled to sell the asset on behalf of the finance company at the end of the lease and typically keep 95% of the proceeds. On all finance leases the asset is included on the balance sheet.
The Benefits of Finance Lease
- Low initial outlay, typically the first 3 rentals.
- VAT payable monthly.
- Existing bank credit lines are not tied up.
- Rentals can be monthly, quarterly or seasonal.
Cash Flow Finance
Often reffered to as Factoring and Invoice Discounting this popular method of assisting a company’s cash flow is particularly useful for new starts, expanding businesses and companies requiring an injection of funds currently tied up in outstanding invoices. The factoring company immediately releases a large proportion of an invoiced amount with the end customer paying the invoice directly to the factoring company.
VAT & Corporation Tax Funding
Many businesses spread their Tax and VAT Liabilities to help smooth out their peaks in cash flow over the year. Just like other business expenses, such as payroll, insurance, utility bills, and equipment, spreading the costs over time means your outgoings match your income – monthly!
By setting up a spread payment facility, you can split your TAX payment over 12 months, and your VAT payment over 3 months – we can even set you up with a recurring VAT funding agreement that means future quarters are spread monthly too.
Working closely with our customers, and our trusted panel of lenders, ensures First Capital Finance is able to provide finance against a virtually endless list of equipment.
If you are in any doubt as to whether a pending or planned purchase would be suitable, please contact us on 01202 434000.
