Introduction Since acquiring our consumer credit licence, we can now offer our business customers low cost finance, which enables you to pay for your printer over 12, 24, 36 or 48 months.
At rates that are lower than many credit cards and with the option to pay back early without large penalties; plus the equipment is yours to keep, you simply can't go wrong!
How it Works
Simply let us know what equipment you are interested in and we'll create a quote in minutes; and with acceptance in usually under 15 minutes, you can have your printer delivered within a few days!
PLEASE NOTE: Unlike other companies that offer credit at 20% and above and make money on finance - we don't. We simply offer you the best rate we can find (currently 12.9%).
We offer credit facilities purely for the benefit of our customers and we don't make any money from the finance we arrange for you. You are of course free to arrange your own finance or give us details of your finance or leasing company and we will deal with them.
HP or Leasing?
We can offer you either a leasing package or a standard HP agreement, you can choose which. All finance arranged by us is based on a fixed rate, so that you know exactly how much you are budgeting for on a month by month basis and the monthly amount doesn't change throughout the period of the agreement.
HP
Leasing
With a Hire Purchase agreement, after all the payments have been made, the business customer becomes the owner of the equipment. This ownership transfers either automatically or on payment of an option to purchase fee. (£0 with our scheme).
For tax purposes, from the beginning of the agreement the business customer is treated as the owner of the equipment and so can claim capital allowances. Capital allowances can be a tax incentive for businesses to invest in new plant and machinery or to upgrade information systems.
Under a hire purchase agreement, the customer is normally responsible for maintenance of the equipment, unless the cost of a maintenance contract is included in the original purchase price.
The fundamental characteristic of a lease is that it is 100% tax deductable.
Ownership never passes to the business customer (see below)...
Instead, the leasing company claims the capital allowances and passes some of the benefit on to the business customer by way of reduced rental charges.
The business customer can generally deduct the full cost of lease rentals from taxable income as a trading expense.
As with hire purchase, the customer is responsible for the maintenance of the equipment, unless the cost of a maintenance contract is included in the original purchase price.
The minimum invoice value for leasing is £1000, although this can include consumables and additional warranties or service agreements.
Monthly Costings
Monthly Cost of HP for Equipment costing £2000 inc Vat over 36 Months (3 Years):
36 Monthly Payments of £66.62 (Vat is in effect included in this amount and would be reclaimed by VAT registered businesses when the equipment was purchased). The repayments are simply paying back the capital amount (plus interest) over a given term (3 years in this case).
Monthly Cost of Leasing for Equipment costing £2000 including VAT over 36 Months (3 Years):
36 Monthly Payment of £68.20 + £25 added to first payment + 1 extra payment of £68.20 to continue the rental indefinitely. All figures exclude VAT, which is added to the monthly rental and may be reclaimed by VAT registered businesses.
Customer may sell the equipment at the end of the term to a third party and retain all of the funds received subject to a £20 admin fee.
Which is better Value?
This depends on your circumstances and we would always recommend that businesses check with their accountant as to the best option for your business.
In the above monthly costings, it may seem that Leasing is the slightly more expensive option; however, as the monthly rental costs associated with leasing are 100% tax deductable, (outright asset purchase with HP is currently not!), leasing is often the most cost efficient.
Fixed Monthly Payments
HP and Leasing both offer fixed monthly payments, so that you know exactly how much you are budgeting for on a month by month basis and the monthly amount doesn't change throughout the period of the agreement. Leasing does however attract a small admin charge, which is added to the first payment.
Flexibility - Early Repayment
With HP you may repay the loan at any time and only pay one months interest penalty!
e.g. a £1500 loan over 2 years would incur an additional payment, (on top of the balance outstanding), of less than £20 for settling early.
So, if you paid the loan back early, say after 6 months, you would have paid £424.50 already + £1170.15 settlement making a total of £1594.65. The total charge for credit being £94.65 in this instance.
With Leasing you are free to settle early after one year without any penalties.
Settlement before one year has elapsed, may be seen as tax avoidance by the Inland Revenue, as this would mean the asset has been 100% written down in over this period. However, should you wish to add to or settle the agreement in order to take additional finance, then this would be acceptable and the agreement can be re-written to take into account additional purchases.
HP - Approximate Monthly Figures
Table below shows Monthly Payment based on:
Apr of 12.9% (fixed) - Interest Rate 12.19%
1 Year
2 Years
3 Years
£500
£44.47
£23.58
£16.65
£1000
£88.94
£47.16
£33.31
£1500
£133.41
£70.75
£49.96
£2000
£177.88
£94.33
£66.61
£3000
£266.82
£141.49
£99.92
£4000
£355.76
£188.66
£133.23
Leasing - Approximate Monthly Figures
Admin Fee: (One off added to first monthly payment)
Agreements < £2,500 - £25, £2,500 to £10,000 - £50, over £10,000 - £100
Save over £70 on
Since acquiring our consumer credit licence, we can now offer our business customers low cost finance, which enables you to pay for your printer over 12, 24, 36 or 48 months.
