Our Finance Products

From initial enquiry, right through to the delivery, Future Finance & Leasing Ltd makes asset based finance both easy to understand and straightforward to arrange.

A hire purchase product requires that you pay an initial deposit, followed by equal monthly instalments over a set period. The interest rate is fixed so payments remain the same for the full length of the agreement. At the end of the period, once you have paid all the instalments and the purchase fee, the car will be yours.

KEY BENEFITS OF HIRE PURCHASE:

  • With ownership the customer has total control over the asset.
  • Ownership normally carries the potential for claiming writing down allowances and/or capital grants, including any enhanced first year allowances.
  • VAT on the cost of the asset is normally reclaimable.
  • Fixed or variable interest rate – the customer can make their own assessment and choose accordingly.
  • The interest element of repayments can normally be offset against taxable profit.
  • The asset appears on the balance sheet.

CASE STUDY
Haulage company, Essex

OBJECTIVES:
An Essex-based haulage and distribution company have been using Future Finance for their fleet funding requirements for some two years. But on a recent order for five fork lift trucks they had to move particularly quickly.

ISSUES TO OVERCOME:
The directors needed to urgently acquire five new fork lift trucks after the customer had been let down by the fork truck supplier. They looked to Future Finance to provide construction equipment finance within one week.

FINANCE SOLUTION:
Reacting quickly with delivery and payment to the supplier taking place with inside 5 days, Future Finance managed to secure the necessary finance which enabled the client to start it’s new contract with a major supermarket chain.

Lease purchase combines the immediate cash flow benefits of leasing with the opportunity to buy the asset outright for a nominal fee at the end of the agreed term.
HELPING YOUR CASHFLOW
You cashflow benefits as you do not need to use your cash resources to make a capital outlay for the total purchase price of the asset up front and we are flexible over the initial rental or deposit. Just as importantly, the asset can be generating income for you whilst you are paying for it.
THERE ARE A NUMBER OF WAYS IN WHICH YOUR BUSINESS CAN BENEFIT:

  • Budgeting is easier as the payments structure is agreed with you at the outset.
  • Payments can be matched to the depreciation of the asset.
  • You can claim immediate capital allowances on the equipment.
  • The interest element of the payments is tax deductible.
  • VAT is immediately recoverable on the whole purchase price (except in the case of cars).
  • Unlike some bank loans, additional security is not usually required and a lease purchase agreement is not repayable on demand.
  • Funding is on balance sheet and you have a choice of fixed or variable interest rate agreements.

KEY BENEFITS OF HIRE PURCHASE:

  • Ownership upon delivery of the asset.
  • Repayments can be matched to the pattern of your cashflow.
  • Choice of agreements and terms.
  • Asset can be bought outright for a nominal fee at the end of the agreed term.
  • Additional security is not usually required.
  • Not repayable on demand if conditions are being met.
  • Simple, clear English documentation.

CASE STUDY
Haulage company, North London

OBJECTIVES:
Expand existing fleet of tractor units and trailers.

ISSUES TO OVERCOME:
Customer was only used to paying a 10% deposit. Existing funder had let the customer down at the last minute. The lorries were being delivered in four working days.

FINANCE SOLUTION:
The customer was able to take delivery of all the vehicles and was able to meet the contract. A 10% deposit suited the customer’s cash flow requirements. The whole deal was paid out within four working days.

Finance lease is a rental product offering low monthly rentals and a large final rental. You pay a small number of rentals in advance, followed by equal monthly rentals over the agreed period. At the end of the agreement you arrange to sell the vehicle and the final rental is settled from the proceeds. You are liable for any shortfall but you will benefit from any excess over the agreed final value.

Alternatively you may opt for a full pay out lease where there is no final rental. At the end of the agreement you can either arrange to sell the vehicle and benefit from the proceeds or you can enter a secondary hire agreement for a nominal rental.

KEY BENEFITS OF HIRE PURCHASE:

  • Lower monthly rentals.
  • Rentals are allowable against tax (restricted on cars costing more than £12,000).
  • 50% of the VAT can be reclaimed on rental on cars (the actual percentage may vary).
  • Cash flow is improved.
  • Monthly rentals are fixed.
  • The vehicle can be treated as a balance sheet asset.

CASE STUDY
Woodwork machinery dealer, Essex

OBJECTIVES:
Future Finance were approached by a local Essex woodworking machinery dealer to finance £35,000 worth of woodworking machines, panel saws, edgebanders and routers for one of their good clients.

ISSUES TO OVERCOME:
In a bid to save money, this bespoke contemporary and modern furniture maker in North Essex wanted to move their production business from Yorkshire to premises in Essex.

FINANCE SOLUTION:
Future Finance met with the client and had the finance agreed within 2 days. The client’s production was all set up in Essex the following week saving them £7,500 per month in costs.

This is a rental product where the monthly rentals are based on the period of hire, the annual mileage, the vehicle price and the anticipated future value of the vehicle. Service and maintenance cover can be included. You pay an initial payment of three monthly rentals over a 2 to 5 year period. At the end of the agreement, as long as you have fulfilled the mileage and condition requirements, you simply return the vehicle.

KEY BENEFITS OF HIRE PURCHASE:

  • Lower monthly rentals.
  • Rentals are allowable against tax (restricted on cars costing more than £12,000).
  • 50% of the VAT can be reclaimed on rental on cars (the actual percentage may vary).
  • There’s an optional maintenance package to cover unexpected costs.
  • Cash flow is improved.
  • Monthly rentals are fixed.
  • Administration is minimal.
  • You’re protected against any fall in used vehicle prices.
  • You’re not responsible for disposing of the vehicle.
  • Your vehicle can be changed for new one every 2 to 5 years.

CASE STUDY
Ford Dealer

OBJECTIVES:
To finance 20 Transit vans required by a local company for whom the dealer was unable to secure the required finance.

ISSUES TO OVERCOME:
Future Finance were approached by a local Ford dealer to supply 20 Transit vans to a local waste recycling and CCTV pipeline surveying company, as the dealer was unable to secure the finance.

FINANCE SOLUTION:
Future Finance met with the company and managed to finance all 20 vans on a 5-year contract hire basis and the customer was able to fulfil their ongoing contract with a major water supply company. Since then we have financed an additional 6 vans as well as several Directors cars.

Are you having cash flow problems?
Would you like a cash injection into your business?
By releasing cash locked in your fixed assets we can help aid the stability of the business by giving a cash flow injection, enabling swift recovery from a bad debt, funding an expansion, help to repay bank overdrafts or reduce monthly payments on existing hire purchase or lease agreement.

We can offer an extensive range of asset re-finance solutions enabling you to release the capital already invested in cars, commercial vehicles, plant and machinery. The repayment terms and values range from advances of £10,000 to £5 million with repayment terms 2 years up to 7 years. Repayment profiles can be tailored to meet your individual business requirements.

KEY BENEFITS OF HIRE PURCHASE:

  • Raise additional cash for working capital and boost cash flow.
  • Structure bad debt over a longer period.
  • Clear outstanding bank overdrafts and loans.
  • A fresh injection of working capital can help fund expansion plans to stimulate further growth and development.

CASE STUDY
Plant hire company, London

OBJECTIVES:
A nationwide plant hire company based in London had grown rapidly through acquisition and sought working capital. A further £4M of facilities was available to the company from mainstream funders, subject to them securing.
a £1M cash flow injection.

ISSUES TO OVERCOME:
Restrictive cash flow facilities were constraining profit and growth opportunities, with much needed increased funding facilities locked up due to the company not meeting liquidity targets. Other lenders had indicated a willingness to provide support, but subject to contemporaneous completion of the £4M facilities from other sources.

FINANCE SOLUTION:
Though discussions with the client, Future Finance was able to confirm that whilst a £1M facility was needed, there was not an immediate requirement for all of the funds to be released. Future Finance provided a £1M sale and lease purchase back against unencumbered plant over a 36 month period and enabling the company the opportunity to utilise a potential further £4M in funding lines.

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