Frequently Asked Questions

Why should I use leasing rather than pay cash or use a loan?
Your cash may be better used elsewhere in your business, particularly as working capital, rather than financing fixed assets. Normally bank overdraft and loans will be more expensive than a rental solution.

What happens to the equipment at the end of the finance arrangement?
It depends on the type of finance arrangement you choose. With a lease rental agreement you can choose either to continue leasing the equipment for a secondary period, arrange for an up-to-date replacement to be installed as part of a new agreement or simply return the equipment to the lessor. At the end of a lease purchase agreement you have the option to buy the equipment for a final, nominal sum.

Business Finance Quote™ are members of NACFB How does this benefit me?
You have the reassurance that we abide by the Association's Code of Practice. The Code is designed to ensure clarity of information regarding the finance arrangement and a set of guidelines to ensure a fair deal.

How is my tax situation improved by leasing capital equipment investment?

• Under a lease purchase option, you claim the Writing Down Allowance. This allows you to offset a percentage of the asset value each year against your tax liability. Under the finance and operating lease options, the lessor is the owner of the assets and claims the Writing Down Allowance. However, the lessor will reflect some of its benefits to you through the lease price.
• With a lease you can offset the payments in full against your tax liability. With hire purchase you can offset any interest paid on the loan against tax.
• Using a lease option, VAT is payable on the payments as they fall due throughout the lease period. When you acquire an asset using lease purchase, the VAT is paid in full up front. In both instances you should be able to claim the VAT back.

I'm buying a business, can I borrow 100% of the fund I need?
Not usually – a lender normally likes some contribution from you. However, because of our experience there may be circumstances where we use a combination of mortgages, sales ledger funding and asset finance to obtain 100% funding.

I've purchased new machinery with cash. Can I refinance to raise working capital?
Yes, we have access to lenders who will provide asset finance.

I haven’t got any assets or cash, can I still get a mortgage?
We can still help – we access to a wide range of non-status mortgages that could assist you.

When buying a commercial property do I always need a solicitor?
Some lenders will allow self-representation though for your own protection we believe it prudent that you find a good quality commercial solicitor. Should you wish we would be delighted to recommend you a commercial solicitor.