Products

Equipment Finance

XL Business Finance can assist with capital purchases from as little as £1000 upwards. We have experience of equipment finance across many different types of equipment; plant & machinery, computers, telephone systems, industrial racking, commercial vehicles, yellow plant & machinery, printing, packaging and engineering equipment etc. Remember that equipment finance can actually be cheaper than paying cash. We also give manufacturers 'own brand'' finance schemes to speed the purchase procedure. See Vendor Finance

Hire Purchase

Also known as deferred purchase, lease purchase, purchase plan, or simply, HP) A popular and traditional finance method where payments of capital and interest are paid over the agreement term. Capital allowances are allowed on full cost of purchase, commencing in the accounting period when equipment is acquired. VAT on full equipment price is payable (and reclaimed) at the outset.

Finance Lease

A Finance Lease offers similar benefits and risks to a HP agreement. However 'title' (ownership) to the equipment remains with finance company at all times. As customer does not have outright ownership, no capital allowances are available. However, equipment is capitalised in the Balance Sheet, and depreciation is charged to P & L account. VAT is paid on each rental throughout the term. At end of Lease, customer enters into the “secondary period “ whereby one month’s rental is paid on an annual basis (Peppercorn rent). Alternatively customer sells equipment and retains 90% of sale proceeds and accounts for balance to finance company

Operating lease

Operating Lease and Rental facilities are the only means of acquiring equipment, which do not get capitalised on Balance Sheet. One obvious advantage is that, because the debt is not evident on the balance sheet, the company's gearing is not affected. Ownership remains with finance company, whilst the hirer enjoys usage of the equipment for a lower rental, for a fixed period. All rentals (including pre-payments) are charged against the Profit and Loss account. VAT is paid on each rental throughout the term.

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