Cashflow solutions

Cashflow Solutions

Commercial loan facilities have been designed expressly to give businesses an opportunity to better manage and control the disciplines of cash flow management.

The advantages

  • Buy now – pay later from future income
  • Buy at today’s prices – pay from income generated by the acquisition
  • Buy today and impact business growth immediately – pay in small monthly increments
  • Diversity of borrowings, away from the bank and investors
  • Protect cash flow
  • Even-out monthly budgeting
  • Rationalise costings into budget so forecasting can be made more accurate
  • Take advantage of commercial opportunities to expand, grow and protect your business

The products

  • Hire Purchase
  • On and Off balance sheeting leasing
  • Commercial/company loan

Hire Purchase and Leasing

Hire purchase and leasing are normally associated with equipment financing or equipment refinancing. They differ in two ways:

A. VAT is payable on all leasing instalments to include, the initial payment/down payment, the instalments in both the primary and secondary periods, and the sale proceeds on disposal plus the rebate of rentals. There is no VAT on hire purchase – it is zero-rated.

B. Title, leased equipment remains in the name of the finance company and therefore the finance company is responsible for paying the VAT. The primary period of lease is continued by a secondary period of usually a nominal annual instalment. Therefore, title never passes to the lessee. Disposal of the assets is only available to an independant third party.

Leased assets can now be included on the balance sheet – determined strictly in accordance with the individual terms and conditions under the lease agreement.

In the case of hire purchase, title remains with the borrower throughout. All allowances, where applicable, can be claimed and the assets are entered in the usual way on the Year End Accounts Inventory of Assets.

If you are considering a capital equipment purchase, please contact this office for a quotation. Similarly, if you have unencumbered assets and experience pressure on the cash flow, please allow us to make a proposal of how our products may be of assistance to your organisation.

Commercial Loans

In the event that a business has a borrowing need and its bankers, investors or directors feel that they cannot assist, we can write a Loan Note to the company, partnership or sole trader.

Typical examples of this product recently found have been:

  • deposits for purchase of property
  • expansion plans – by another business/competitor
  • claim discount when buying stock and paying in advance
  • buy out or incentivise employee, partner, director, shareholders

Back to top

Contact Us

Telephone: 0116 2418789
Mobile: 0771 1747408 – Ashley Feroze
Mobile: 0771 0029061 – Lorna Hamilton