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ASSET
FINANCE

Want to buy new equipment without raiding your cash reserves? With asset finance, you keep your money in your cashflow while still getting the tools your business needs to grow.

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How does it work?

Asset finance comes in different forms and we are perfectly placed to find the type that works best for your business.

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Types of Asset Finance

HIRE PURCHASE

Hire purchase (often known as HP) loans give affordable access to new equipment by spreading the cost of your purchase over a contracted period. The lender owns the asset during the hire purchase contract and ‘rents’ it to you. At the end of the period, once all payments on the HP loan are made, you take full ownership of the asset.

Advantages

  • Flexibility - Can spread the cost over the useful life of the asset
  • Tax Efficient – you can offset the cost of the asset (plus the new Super Allowances) and the HP interest against your taxable profits
  • Seasonality – repayments can sometimes be structured to reflect the seasonal nature of the business

Disadvantages

  • Flexibility – once the period for the agreement has been agreed it is usually fixed for the term of the agreement
  • Ownership – You won’t own the asset until the final payment has been made
  • Mind The Gap – if the asset is stolen or destroyed before the asset is fully paid for the insurance may only cover the cost of the asset and not the outstanding finance payments.

FINANCE LEASE

Leasing is similar but without owning the asset at the end of the agreed term. At that point, you have several options – you can either continue to use the asset using a secondary lease at much lower rentals, upgrade to a new model, return the asset to the lender or sell the asset to a third party and keep a large proportion of the sale proceeds.

Advantages

  • Flexibility – at the end of the lease term, you can decide what to do with the asset
  • Secondary Term – at the end of the initial lease period, you can continue to use the asset at a much reduced rental
  • Tax Efficiency – you can offset the total value of the rentals paid during the period against your taxable profits
  • Efficiency – uninterrupted use of the asset

Disadvantages

  • Ownership – you never own the asset
  • Insurance – you will need to fully insure the asset even though you do not own it
  • Maintenance – you will need to fully maintain and repair the asset throughout the term of the lease.
  • Commitment – if the business no longer needs the asset they may still be obliged to pay for the remaining period of the lease

OPERATING LEASE

This is very similar to a Finance Lease but only for part of the asset’s useful life.  This means that you pay a much-reduced rental as you only pay the difference between the cost price and the estimated residual value.  Unlike a Finance Lease, you do not have the burden of ownership at the end of the lease term.

Advantages

  • Off Balance Sheet Funding – no requirement to show outstanding lease payments in the accounts
  • Lower Cost – lease cost is based only a percentage of the capital cost
  • Low Upfront Costs – no need to make any major upfront deposits
  • Freedom – use of the asset without having to buy it outright

Disadvantages

  • Ownership – the business never owns the asset
  • Insurance – you will need to fully insure the asset even though you do not own it
  • Maintenance – you will need to fully maintain and repair the asset throughout the term of the lease.

WHAT OUR CLIENTS SAY

"We have used Trevor Jacobs from Boss Asset Finance for over 12 months. We have always found him helpful and professional and have no hesitation in recommending both himself and Boss Asset Finance to anybody.


Boss Asset Finance Partners Afford
Tony Dobson
Director, Afford Rent a Car
"We were recommended to use Boss Asset Finance when we first bought some welfare cabins from Boss Cabins. We dealt with Trevor Jacobs who offered a competitive rate. Since then we have used them many times and we are delighted with the service."

Boss Asset Finance Partners Welfare
Ryan Gratton
Director, Welfare Van4less
"When we required sound, friendly financial advice and support, the team at Boss Asset Finance provided a detailed and helpful service as well as securing a great finance deal for our new film production vehicle. This came at a time during COVID when we needed the right kind of professional support and service."
Boss Asset Finance Partners DCT8
David Keers-Trafford
Director, DCT8 Ltd

CHECK OUT OUR OTHER FINANCE OPTIONS

CONTACT US

We would love to hear from you. Find out if our specialised team can help your business with a bespoke finance solution to suit your exact needs. Give us a call, drop us an email or fill in the form below and we’ll get straight back to you.

GET IN TOUCH

Telephone: 03300 948588

E-mail: info@bossassetfinance.co.uk

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OPENING HOURS

8am to 5pm, Monday to Friday
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Regulatory Disclosure

Boss Asset Finance Ltd (FRN 831485) is an Appointed Representative of Consumer Credit Compliance Limited who are authorised and regulated by the Financial Conduct Authority (FRN 631736).

The permissions of Consumer Credit Compliance Limited as a Principal firm allow Boss Asset Finance Ltd to undertake Credit Broking. Boss Asset Finance Ltd act as a credit broker not a lender and we may be paid a fee based on the total amount of credit provided, calculated as a percentage of the balance financed. You will not pay more as a result of our commission arrangements.

  • Boss Asset Finance Ltd
    BCS House, Pinfold Road,
    Bourne PE10 9HT
  • Company Reg No: 11687983
  • 03300 948588
  • info@bossassetfinance.co.uk
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