Types of Finance
Asset finance is a means by which businesses can fund their capital equipment outside of their existing banking facilities, and is particularly suitable for businesses who need to use their existing cash flow to manage their business. Our facilities enable customers to continue using their equipment at the end of the finance agreement should they wish to and can provide tax benefits.
This is a simple repayment facility where you own the assets at the end of the agreement.
Key benefits:
- Complete control over owning the asset
- Flexible repayment periods to suit your cash flow
- Fixed monthly payments to help with budgeting
- Tax advantageous as VAT is usually reclaimable and repayment interest can be offset against profit
Ownership of the asset remains with Shawbrook and at the end of a finance lease the assets are sold and you receive the major share of the proceeds.
Key benefits:
- Low initial costs so you can start earning from the assets immediately
- Flexible payments enable rentals to be tailored to your cash flow
- Fixed interest to avoid changes in the base rate or variable interest if preferred
- Tax advantageous as VAT is only payable on the rental cost not the purchase price
With an operating lease we own the asset and take the risk of it depreciating in value whilst you use it. This type of lease is common for specialised pieces of equipment, in particular those used in the medical profession with a higher value. We build in a residual value that will immediately reduce your monthly payments and boost your cash flow. You can then fix the rental costs and should you not wish to extend the agreement you may return the equipment at the end of the lease.
Key benefits:
- Fixed monthly costs
- Flexible payments which can be tailored to meet your cash flow
- Fixed interest rate gives you certainty should rates rise
- Off balance sheet where possible
- Tax efficient
Sale and leaseback enables you to sell your assets to us and rent them back, immediately freeing up the capital tied up in the asset into your business.
Key benefits:
- Immediate cash injection into your business
- Fixed monthly payments help with budgeting
- Your business retains full use of the assets