Finance options

Hire purchase allows you to purchase an asset by spreading the cost over a set period of time. Following an initial deposit, the balance is then paid in instalments, usually on a monthly basis. During the agreement, you are responsible for the maintenance and insurance of the asset.

At the end of the agreement, you have the option to buy the asset by making a final option to purchase fee payment to gain ownership. Balloon payments are also available.

For tax purposes, you are treated as the owner of the asset from the beginning of the agreement so you may be able to claim capital allowances.

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A finance lease is a longer term finance solution that allows you to hire an asset over a set period of time.

At the end of the primary lease period you can:

enter into a secondary rental period, making one payment per annum; or
return the asset to Liberty Leasing; or
discuss with us the option of selling the asset to a third party.

Although you do not own the asset, you will have most of the ‘risks and rewards’ associated with ownership. The asset will be shown on your balance sheet as a capital item and you will be able to deduct the full cost of the lease rentals as a trading expense.

As with hire purchase, you are responsible for the maintenance and insurance of the asset.

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Refinancing is the process by which a business can use their existing unencumbered assets such as vehicles, plant and machinery, to raise additional capital.

Releasing capital tied up in fixed assets can help improve your cash flow and the stability of your business. Funds can be used to recover from bad debt, reduce bank overdrafts or other debts. The injection of working capital can help fund the expansion of your business, management buy ins/outs or allow you to purchase new assets.

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