An efficient way of funding business assets or releasing cash locked up in them.
Asset Finance can give customers access to the latest business assets such as equipment, machinery and vehicles without the need for large up front purchase costs.
We will provide funding against the assets and phase the repayments over a period up to the useful life of the asset. Thus we help free up much needed working capital.
We can also provide asset finance against existing owned assets, thus unlocking the cash from high value assets in the balance sheet.
Our asset finance offering includes:
- Hire purchase
Hire purchase enables customers to acquire an asset while paying for it in instalments over an agreed time, the “term”. At the end of the term, there is an option to purchase the asset outright.
Benefits of hire purchase
- More time to repay: spread the cost over the life of the asset
- Seasonality: we can structure repayments to take account of seasonal fluctuations in cash flow
- Keep control: as the customer still owns the asset for tax purposes, they can normally claim capital allowances
- Tax efficient: the interest and charges paid for the hire purchase can be offset against pre-tax profits
- Reduce costs: reclaim VAT on the capital cost (subject to current tax rules).
- Finance lease
Finance lease arrangements enable customers to use the equipment they need without having to buy it outright.
They pay rent for the use of it over the rental period which can be tailored to usage needs and cash flow. During this period, they repay the full cost of the asset, including interest.
At the end of the primary lease term they can choose to:
- continue to use the asset by entering a secondary rental period
- sell the asset and keep a portion of the income from the sale
- return it to us
Benefits of finance lease
- Low initial outlay: quick access to the right asset without a heavy upfront investment
- Flexibility: rental payments and lease periods can be designed to match cash flow
- Cash back: receive most of the income from selling the asset if selling it at the end of the lease
- Tax efficient: rentals can usually be offset against pre-tax profits
- Reduce costs: reclaim VAT on rentals.
- Asset finance loan
Asset finance loans enable customers to borrow money secured against an asset or group of assets that the bank will take a charge over.
Deposit amounts and final balloon payments can be adjusted to suit customer circumstances but are relative to the value of the assets.
Benefits of asset finance loans
- Simple and flexible: loans can offer flexibility and simplicity in a variety of structured financing situations
- Tailored: we can help customise facilities to your specific requirements.
Sale and lease back is a form of refinance that can be used against most types of equipment, making it suitable for companies of all sizes.
Under this arrangement, we would purchase the asset and then finance it back to the customer on either a hire purchase or lease basis.
Repayments are calculated typically in line with the remaining useful life of the asset. At the end of the refinance term, customer have all the options relevant to a hire purchase or lease facility. This may be to purchase the asset outright, to roll it into another term, sell it (retaining some of the proceeds) or return it to the bank.
Benefits of refinancing
- Frees up capital: existing fixed assets can help meet future investment needs
- Flexible funding: can be used against most types of equipment.
Why Wyelands Bank
We understand that freeing up working capital is a major challenge for many businesses, and we offer a range of flexible services to help.
Our vision is to develop partnerships that provide opportunities to grow together, by providing access to working capital, tailored to each client.