Financing your assets have a number of features and benefits to help your company grow. Our aim is to find the right finance solution to meet your requirements.

coach finance

In general there are a number of options to consider, but financing your asset purchases brings a number of business benefits including:-

  • Borrow up to 100% of asset cost – conserves capital for normal trading.
  • Repayment profiles to assist cash flow or match contract period.
  • Additional source of credit – normally secured on just the asset and does not affect your bank facilities.
  • Monthly/quarterly or seasonal payments – assists budgeting.
  • Tax efficient – hire purchase enables allowances to be claimed by the borrower if in a tax paying position, or if no tax is due the equipment can be leased and the allowances taken by the Lessor and reflected in reduced rentals.
  • Operating Lease allows reduced rentals and off balance sheet funding – removes the risk of the equipment’s future value, benefits cash flow and reduces balance sheet gearing ratios.

The main options for financing your assets essentially comprise:-

Hire/Lease Purchase
  • A typical deposit of 10% plus the VAT (on the cost of the asset) is normally required with the balance repayable over 2 – 10 years, depending on the asset.
  • VAT deferments are possible to assist with cash flow.
  • Interest rates can be either fixed for the agreement term or variable linked to bank base rate or 1 month LIBOR.
  • The asset and associated hire purchase are shown on your balance sheet.
  • Your business claims any writing down allowances for offsetting against tax.
  • When the finance agreement has been repaid you own the asset.
Coach finance
Finance Lease
  • Flexible up front initial rentals.
  • VAT is paid on the rentals as they fall due.
  • Unlike hire purchase, you can never own the asset. The leasing company retains title so that it can claim the tax allowances.
  • At the end the primary period you pay nominal annual rentals.
  • When you wish to dispose of the asset, which must be to an unconnected third party, you will receive a rebate in the region of 95% of the sale value.
  • The asset and associated lease debt is shown on your balance sheet.
  • The rentals you pay are tax deductible.
Coach Funding FAF
Operating Lease
  • Typical rental contract for periods of 2 to 7 years
  • The rentals are calculated on the difference between the cost of the asset and what the finance company considers it will be worth at the end of the term.
  • Rentals paid are tax deductible.
  • The asset and operating lease liability do not appear on your balance sheet.
  • At the end of the contract you have options:
    • Extend the existing rental agreement
    • Return the asset to the Lessor (assuming it meets stipulated return conditions)
    • Sell the asset on behalf of the Lessor and retain a percentage of the profit generated on sale.
Coach finance

Refinance of assets you already own can also be arranged to release capital for other projects such as:

  • Assisting in the financing of management buyouts/ins (MBO’s/MBI’s)
  • Acquiring other businesses.
  • Raising working capital for expansion.
  • Financing the purchase of intangible assets.
Coach funding