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Finance Pre Heater

    Pre heater 
Install
VAT

Total
   £2775.00
£200.00
£595.00

£3570.00
What are my options        
         
  Hire Purchase        
         
Title bearing agreement        
         
You own the goods at the end of the payment period
   Deposit                              (£350 plus VAT £595)   £945.00 
         
You can claim all of the VAT back on the purchase
(if VAT registered)

  36 monthly payments   £95.33 
    or 
  
You pay all the VAT at the beginning    48 monthly payments    £75.18 
    or 
  
You will also pay a documentation fee £250   54 monthly payments    £68.50 
         
You will also pay an Option to purchase fee £50        
         
  Finance Lease        

        
Non-title bearing agreement        
         
You can claim all the VAT back on payments you make 100%

            Initial payment                    (£350 plus VAT £70)  = £420.00
         
All the payments can be offset against income/corporation tax            36 monthly payments (£95.33 plus VAT £19.07)    £114.40
    or    
You pay the VAT as you go    42 monthly payments (£83.80 plus VAT £16.76)   £100.56 
    or    

   48 monthly payments (£75.18 plus VAT £15.04)   £90.22 
    or    
    54 monthly payments (£68.50 plus VAT £13.70)   £82.20 
         
         
         
Which option is best for me - discuss in confidence through independent financial advice   Peter Morris    
    Pinewood Asset Finance    
   0845 456 4968    
    07990 503 249    

        
    e-mail     
Both arrangements are subject to terms and conditions   website
    
 
       
         
Hire Purchase
 
Also known as lease purchase, most people will have come across this at some point in the high street. Whether you are considering buying a television or a car, hire purchase is widely available.
 
It allows you to pay off the full amount over a defined period. At the end of that period, provided you stick to the terms of that agreement, you will own the asset.
 
There is a capital allowance - currently 25% on the reducing balance - available under a hire purchase agreement
 
If your business is registered for VAT, you can also claim back the VAT on the asset upfront.
 
Also, any interest that you pay can be offset against profits.
 
If you see this item as an asset that will keep its value, hire purchase could well be for you.
 
Finance Lease
 
Some businesses want to have the use but not necessarily own the equipment particularly start-up businesses that have yet to turn a significant profit may not be able to make best use of capital allowances, instead, the bank or finance company can take advantage of these allowances and pass on the benefits through lower rentals.
 
Although a finance lease will look and feel the same as hire purchase, you will not end up owning the asset at the end of the contract ownership remains with the finance company at all times.
 
The agreement is structured so that you pay off the whole value of the asset. If you are leasing equipment worth £3,000 you will pay the whole £3,000 plus interest during the lease. If you are still using the asset at the end of the original contract, a second agreement can be entered into for a nominal fee.
 
You will be able to offset rental charges against profits and you will be able to claim VAT as well. The agreements can be structured in different ways but you may find that you can choose when to sell the asset and, if so, get a rebate for the remaining rental charges 
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