Frequently Asked Questions
FAQ Finance Packages
FAQ Customer Service
FAQ Common Queries
What trade finance is
available? I need finance to handle peak seasonal demands...
What products groups (or
business categories) do you offer finance for? APT provides funding for all
kinds of businesses...
Can I get a fast quote from
you? Yes, fill out our enquiry form with specifics of what you want to
purchase, and we'll send you a free quotation...
Who is eligible for leasing
and HP? Any business - self employed, limited company, plc, partnerships,
My business is esoteric -
I've been down the road with traditional banks - what makes APT Finance
different? We have years of experience in dealing with all types of
The various finance terms /
concepts are baffling, can you help? See
Leasing Terms Defined,
Finance Dictionary and
also look at the different
finance plans for simple
How do I use finance as a
sales tool? This and other supplier questions are fully answered in the
guide to financing equipment purchases
How does it work?
What are the differences
between leasing and hire purchase?
Do I have to be a limited
company to qualify for leasing?
What information do we have
to supply to the leasing company?
Can I include other
equipment from several different suppliers in one lease?
I don't want my supplier(s) to know that I am going to lease the equipment, can
Can I lease second-hand
Can I raise some cash by
re-financing equipment I already own?
How long does it take to
organise leasing or H.P.?
What down payment / deposit
will I need to pay?
What lease payments are
What are the costs for
leasing and hire purchase?
Can I settle
- How does it
- The lessor buys the
equipment from your supplier and then leases it to you (the
When you sign the corresponding lease or hire purchase
agreement, the supplier invoices the lessor, who, having paid them for the
equipment, starts to charge you the monthly or quarterly payments over 12, 24,
36, etc. months, via direct debit.
- What are the differences between leasing
and hire / lease purchase?
- VAT - With hire
purchase (often referred to as lease purchase) you pay all of the VAT with your
first instalment. Leasing spreads the cost of the VAT which is applied to each
monthly or quarterly instalment. In both cases you recover the VAT but with
hire purchase the initial VAT can be a sizeable amount of cash for you to find
for a few months.
- TAX - Both
finance methods provide you with savings to offset against your year-end
taxable profits. With HP, you can claim 25%, or possibly 40%, of the equipment
cash price in the first year, then 25% of the balance in the second year and
this continues on a reducing balance basis each year. With leasing, all the
lease payments you make in the financial year can be offset against your
taxable profits for that year.
Leasing can therefore be more tax
efficient in the short term, if you buy something early in your financial year.
On the other hand, if you make a sizeable purchase near your year-end, then
hire purchase might be more tax efficient for you.
- OWNERSHIP - At
the end of the hire purchase agreement, title to the goods passes to you for a
small transfer fee, usually £50 - £100.
At the end of a lease
you generally have two options:-
- To continue leasing,
but on an annual basis and for an annual cost approximately 2% of the original
- You can gain title to equipment via a third party. .
- Do I have to be a limited company to qualify
- No, we can finance any
business or organisation.
- What information do we have to supply to
the leasing company?
- The leasing company (lessor)
needs to be convinced that you are likely to pay your instalments every month,
on time, for the term of the lease, say 3 years. If you have been established
for several years, then a copy
of the most recent year-end accounts is enough.
If you are a start up,
or relatively new business and therefore don't have a business track record,
then we need to profile you in much more detail - business plans, CVs, home addresses of directors, references,
- Can I include other equipment from several
different suppliers in one lease?
- Yes, no
- If I don't want my supplier(s) to know that I am
going to lease the equipment, can you help?
- Yes, we provide you with a
lease or HP agreement that is invisible to your supplier and we pay you for the
goods at the same time as you pay your supplier.
I lease second-hand equipment?
- Can I raise some cash by re-financing equipment I already
- Yes, but it depends on the
age and type of product.
long does it take to organise leasing or H.P.?
- Anything from one day to two
weeks, depending on the strength of your business and how up-to-date your
financial records are.
- What down-payment / deposit will I need to
- It depends on your
preference and the lessor's opinion of your financial status. We can often
provide no deposit - nothing to pay for up to three months - finance, but
either one month or three month's instalments is the usual minimum. You can pay
up to 50% in cash and finance the balance, if you wish.
- What lease payments are
- Standard payment terms are
monthly or quarterly. Over 3 years for example, it could consist of 11 more
quarterly payments (one quarter due on signing the lease following at 3 monthly
intervals by 11 more quarterly payments; or a 3 + 33 profile, the initial
payment being 3 months lease rentals followed at monthly intervals by 33 more
payments. We can usually tailor the payment schedule to meet your cash, budget
or tax priorities, for example:-
- An 18 month lease to
match the income from an 18 month contract you have won;
- payment "holidays" for
the one or two months in a year when business is slack;
- install now - pay later
so you can generate income from the equipment before you start to pay for it;
- The minimum finance period
is twelve months, commonly two or three years for 'hi-tech' products, five
years for longer life equipment.
- What are the costs for leasing and hire
- The interest rates depend on
several factors such as the purchase price of the goods [below £10,000
the rates are higher than for purchases over, say £50.000] and your
credit status. The monthly or quarterly costs also depend on whether or not you
pay a deposit and whether you finance the balance over, for example, 21, 23 or
24 months in the case of a two year lease.
- Can I settle early?
- Yes, without penalty but it
is generally not an efficient use of your cash because you will be paying off
future interest charges.
If you think it will be beneficial for you to
settle early, then a variable interest rate lease purchase minimises the
interest you will be paying off.
Click here for a few
examples of recent funding
Click here to download
amended User Guide to Finance Equipment Purchases
contact us or use the
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