Bespoke finance solutions
To complement the vehicle acquisition and funding products currently offered, UK Carline are please to announce a new range of funding options and bespoke finance products tailored towards the purchase of all other business and capital equipment. This equipment includes but is not limited to
• IT Equipment - including all hardware and software
• Engineering equipment
• CCTV and security
• Plant and machinery
• All office equipment
• Telephone systems
• Commercial vehicles and semi trailers
• Buildings and developments.
• In fact any investment you are considering within your
business enterprise!
What we can offer
UKLeaseline are able to offer a wide range of flexible finance products that best suit your business requirements and providing alternatives to outright capital purchase. UK Leaseline has designed various financial packages that are designed to make it easy for you to acquire business equipment and products. Our products and services have been used across all sectors of the UK market place ranging from household name corporations, high street banks, Government bodies and small businesses.
We invest considerable effort in arranging funding plans that best suit you, therefore we welcome the opportunity to discuss your asset planning and tax position, ensuring you maximise your potential tax benefits and meet your longer-term objectives. Whether the best option for you is a form of lease purchase or other finance option, we can structure a funding solution that allows the management of the cost of investment and may incorporates a number of tailored solutions. Payments can be structured to match accounting procedures and cash-flow projections; payment profiles tailored to accommodate seasonal or stepped revenue flow, equipment migrations or staged equipment rollouts.
Technology Refresh and Upgrades
UKLeaseline places great value on long term customer relationships, so we allow our customers the maximum flexibility throughout the finance period. Change can occur rapidly both within an organization and externally in the technology market, so just as systems must be able to adapt, so must financing arrangements. UK Leaseline therefore offers a technology refresh facility enabling customers simply to extend or upgrade their system within an existing financial arrangement without necessarily increasing the payments.
Buyback of existing infrastructure
UK Leaseline can buy back your existing infrastructure at its tax written down value or if the assets are already leased, we can buyout the existing lease agreement to help structure your new equipment roll out plan.
100% Financing
All the costs involved with a project can be incorporated into one fixed payment and within one invoice that incorporates all the elements of a project.
Bespoke Finance
Deferred Payments
Deferred payments means you can see some return from your investment before you start paying for the assets. The first payment can be deferred up to 6 months enabling you to pay for the equipment once it starts generating revenue for you.
Stepped Payments
Stepped payments ensure your repayments keep in line with your anticipated increase or decrease in usage. This could be ideal if you expect an increase in your users or if you have seasonal fluctuations with your cash flow.
Financial Products
Lease
A lease where via the monthly repayments the lessee pays in full the cost of the equipment, plus interest, over the primary term of the agreement. It is deemed that the lessee takes the 'risk and reward' in using the equipment, meaning that the asset is treated by the lessee as if it were his own, and the value of the asset is therefore shown on his balance sheet.
Operating Lease/ Fair Market Value Lease
A lease where the funder assumes that the asset will have a resale value at the end of the lease period and therefore the lessee pays a lower rental amount. The resale value is generally termed a 'residual value'. At the end of the contract term the lessee may return the equipment to the lessor who must resell the equipment for the assumed resale value, in order to realise a profit. As the lessor is assuming the risk in the asset, the asset is shown on the lessor's, and not the lessee's, balance sheet. This is known as 'off balance sheet funding'. An operating lease is most likely to be used when the organisation does not anticipate keeping the product for the duration of its useful life or wishes to class the payment as an expenditure cost, not a capital purchase which is often used in the Public Sector arena.
Hire Purchase
A Hire Purchase agreement is similar to a lease in that the customer (the hirer) selects the asset and a lender buys it on their behalf from the supplier. The customer then pays the lender a series of instalments over a defined period - normally between 12 and 60 months. The lender has title to the asset as security in the event of the customer defaulting. However, at the end of the Hire Purchase term, a purchase option is taken up by making a single nominal payment, and ownership of the asset transfers to the hirer. As this form of acquisition is deemed to be purchase, the asset acquired is shown on the hirer's balance sheet. (Also known as Lease Purchase).
Instalment Payment Agreement (IPA)
An Instalment Payment Agreement is designed specifically to fund software and services on a stand alone basis. It is a flexible product, which can be used when software and services constitute the majority of the overall cost of the solution.
Funding Periods
• 12 to 60 months
• Monthly, Quarterly, Bi-Annually & Annually
• Deferred payments (see above)
• Stepped payments (see above)
• Bespoke options available
Additional Funding Costs
UK Leaseline can offer a complete package by incorporating all your project costs. Apart from the main capital financing, we can help fund those additional costs such as maintenance, cabling, office refurbishment and other purchases involved in developing your business.
Keep ahead of technology and your competitors
Your equipment will never become obsolete with funding over the useful life of the asset and the options to upgrade and refresh your funding agreements at any time. These two options are available in all out funding products enabling you to keep ahead of your competition without increasing your budgets.
Technology Refreshment
This method is best used to fund an additional investment which either expands or enhances your system and which extends the anticipated working life beyond the end of the original facility period. The cost of the new investment is added to the remaining balance of the original investment. A new facility period then commences, usually mirroring the new anticipated working life of the network. In many cases by extending the length of the facility a new investment can be made without an increase in monthly or quarterly payments.
System Upgrade
This method is best used to fund an additional investment which either expands or enhances your system but without extending it's anticipated working life. The cost of the new investment is added to the remaining balance of the original investment. The payments under the facility are increased for the remaining period of the facility.
Features & Benefits
There are an enormous number of benefits to leasing over other forms of funding. Those that are most important will differ from company to company and customer to customer, depending upon the circumstances at the time. We believe that the main benefits of leasing can be identified as:
Funding Benefits
- Leasing can be viewed as an additional funding source.
1. Conserves cash reserves
Leasing enables you to acquire the equipment you consider best for your business, without making a substantial lump sum payment out of your cash reserves, which then can be used elsewhere in the business. Also the opportunity costs of using those reserves elsewhere are limited.
2. Maintains credit lines for other use
The equipment you need, can be acquired without denting/impacting other credit lines, such as loans and overdrafts making further borrowing easier.
Cash Flow Benefits
3. Leasing can improve your cash flow
Instead of one substantial payment, the cost of the acquisition is spread over a number of monthly payments. In many instances these payments can be set to match seasonal cash flow circumstances and requirements.
4. Fixed Payments
Payments are fixed for the term of the contract. You are protected from rising interest rates and you will always know the exact amount of future payments, enabling accurate budgeting and cash flow projections.
5. Cost Efficient
For many businesses it is advantageous to pay for technological investments over the period that the system or asset is delivering benefit to the business. Payments can be structured to match profiles of 'benefit realisation', for example an initial payment 'holiday' followed by payments which slowly escalate over the first year as the benefits of the asset are realised in terms of increased income or cost savings.
6. Payment Profile
Payment profiles can be structured to meet budgets, roll-out schedules and/or cash flow requirements. This is best achieved by discussing the phasing of the project and assessing the cash flow implications. In this way a payment structure can be proposed which truly matches individual requirements.
Accounting Benefits
7. Tax Advantages
When using an operating lease, the payments can be deducted as pre-tax business expenses. As they are charged in full against income, they reduce your company's income tax and other taxes on income.
8. Balance Sheet
Modern financial control methods employ key financial indicators to monitor and guide the business development of a company. Unlike capital expenditures financed by borrowing, a leasing investment does not show up in the balance sheet. As a result, lease transactions do not have a negative impact on balance sheet ratios such as debt-to-equity ratios.
Equipment Benefits
9. System Upgrade
The system upgrade facility allows funding of additional equipment, including software, which will either expand or enhance the existing leased equipment, but which will not extend its anticipated working life. The additional equipment is added to the original agreement and the cost is added to the remaining balance of the original investment, so that the payments are increased for the remaining period of the facility.
10. Manage technological change
The flexibility of a lease allows you to take advantage of developments in technology and prevents you from being left with obsolete equipment. By exchanging some or all of the equipment being leased for more technically advanced products - you can be sure that your assets stay up to date. The additional investment normally extends the anticipated working life of the system. In many cases, by extending the length of the facility, a new investment can be made without an increase in monthly or quarterly payments.
Administrative Benefits
11. 100% Finance
In most cases, all of the costs of a project can be covered in your lease payments, including all hardware, software, installation and maintenance. We will finance equipment and services from a variety of suppliers, thereby simplifying your project payments. Administratively, life is made much simpler.
12. Administrative Ease
Maintenance costs may also be covered within the lease payments, reducing the administrative burden on you to make many different payments. We will administer the maintenance payments for you with the appropriate supplier.
Finance Summary
In summary, UK Leaseline aims to be highly competitive when compared to other methods of funding. By working with a number of key funding partners we are able to offer a greater degree of flexibility than many other similar companies. The key to this flexibility is our experience and personal service which enables UKLeasline to offer a second to none business service and to assist you to manage change, both planned and unforeseen and the ability to finance almost any capital purchase.
