Finance Options

Hire Purchase

Allows you to purchase the equipment you want and have ownership at the end. Hire purchase is a financial arrangement that allows individuals or businesses to acquire equipment, without making a full upfront payment. Under this agreement, the purchaser pays a down payment and then makes regular payments over a fixed period, typically monthly. During this time, the ownership remains with the seller or finance company, but the purchaser can use the asset. Once all payments, including interest, are completed, ownership is transferred to the buyer. This financing method is popular for those who need essential equipment immediately but prefer to spread the cost over time. We know that agricultural machinery can be expensive for any business. That’s why Hire Purchase provides a flexible way to fund your purchase. With a fixed term contract, it protects against any future interest rate increases.

• Spread the costs over time: monthly, quarterly, semi-annual, or annual repayments
• Flexible finance options: Deferred and structured payments to match your activity needs
• Take ownership of your investments: At the end of the agreement, you take ownership of your equipment, and the interest element of the payments can be registered as a business expense

Finance Lease

A finance lease is a long-term rental agreement for acquiring assets like machinery or equipment. In this arrangement, the machinery is rented for an extended period, typically covering most of the asset's useful life. Unlike an operating lease, a finance lease often includes a purchase option at the end of the lease term, allowing the lessee to buy the asset at a predetermined price. Finance leases are useful for businesses to acquire costly assets without a large upfront payment while enjoying tax and accounting benefits. This type of lease is a popular choice for farmers as it provides access to modern and expensive agricultural machinery without a large upfront capital outlay, enabling them to enhance productivity and stay competitive in the industry.

• Lease with an option to keep and continue paying at the end
• VAT paid on each payment – With a finance lease the VAT is paid over the life of the contract and not up front
• Flexible Financing options – Deferred payments and variable instalments
• Fiscal & accounting benefits – Your equipment is on-balance sheet allowing you to write down over the useful asset life

Operating Lease

In contrast to a finance lease, an operating lease does not transfer all the risks and rewards of ownership to the lessee. An operating lease is a contract that allows for an asset's use but does not convey ownership rights of the asset. This type of ease allows businesses to use the asset without incurring the high expenses involved in purchasing it. It will generally run for less than the full economic life of the asset and the lessor would expect the asset to have a resale value at the end of the lease period - known as the residual value.

• Regular & scheduled payments – Managing a series of small, fixed outgoings across 12-60 months can be easier for cash-flow sensitive businesses than having to pay upfront
• Want to use equipment without ownership – You simply return the equipment at end of the contract, removing the burden of remarketing from you
• Tax and accounting benefits - this can be treated differently than customary retail financing and can be on/off balance sheet based on your accountant’s advice
• Rentals are based on agreed annual usage – You decide the usage conditions (duration and hours) in advance with the possibility to exceed the contract usage conditions at pre-defined fix costs