With any UK Commercial leasing contract the finance company takes full ownership of the asset and rents the goods to you over a predetermined period.
With any UK Commercial leasing contract the finance company takes full ownership of the asset and rents the goods to you over a predetermined period. The UK Commercial leasing finance company can claim the writing down allowances and convey this benefit to you by reducing the UK Commercial leasing rentals.
It also worth noting that the purchase price that is being used to calculate the rental is the purchase price net of VAT. Thus, if you are looking to acquire a VAT qualifying car, if leased the rental is calculated on the net price of the car and not the gross price if funded by UK Commercial Hire Purchase.
Generally, with a UK Commercial finance lease, you will source the supplier, and having paid the documentation fee and an initial payment of a multiple of rentals, substantially all of the remaining cost of the asset is spread over the agreed primary period in accordance with the pause.
The rentals attract VAT that can be recovered subject to eligibility. As the UK Commercial leasing finance company is the owner of the asset, you will not need to pay the purchase VAT at inception.
As with UK Commercial Hire Purchase, you can include a balloon rental to reduce the value of the primary rentals. At the end of the agreement you may have the option to enter into the secondary period. As you have generally covered the entire capital cost of the asset and hire charges (interest) in the primary period, should you wish to continue to use the asset, a secondary or peppercorn rental is charged. This rental typically approximates to 3% of the original cost and is a one off annual payment. As you are not the owner of the asset, you cannot sell the asset during the rental period. However, as you are generally covering the total cost and hire charges within the primary period, you will be entitled to a share of the sale proceeds should the UK Commercial leasing company allow you to sell on their behalf. Your share of the sale proceeds is usually agreed at inception and is typically 95-99%.
Sterling Capital Reserve are specialists in all forms of UK Commercial Asset Finance from UK Commercial Asset Capital Finance to UK Commercial Computer Asset Finance. This service is also called UK Commercial Asset Funding or UK Commercial Asset Based Finance.
Asset Finance covers UK Commercial Contract Purchase like UK Commercial Vehicle Finance, UK Commercial Hire Purchase, UK Commercial lease purchase or UK Commercial Leasing and UK Commercial Leasing and Asset Finance.
Asset Finance services can also be used for UK Commercial Capital Raising.
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Use our Online Enquiry Form on the right hand side of this page or Contact Us on 0800 0735353 and let our professional team find you a competitive UK Commercial Asset Finance Deal.
