APT Finance has a number of very successful relationships with
manufacturers, distributors and dealers supplying high technology products.
These business partners enjoy a great deal of competitive advantages
using APT's knowledge base and experience in financing.
If you are a distributor of equipment, products or motor
vehicles, and you feel APT is a company that can assist you, we may be contacted on (0)1491-642077, or you can use the
dealer application form
to enquire about our dealer services.
We have designed and implemented tailor-made leasing packages for many
vendors and can help you to help finance your customers more effectively.
- Type of finance
Your customer can pay for equipment in any
mix of cash, hire purchase (lease purchase) or finance lease. With HP, ownership of the product is automatic - with a
finance lease it is an option. The major differences between HP and leasing are the
treatment and the tax advantages. With Hire Purchase the customer pays all the VAT on signing the HP agreement but with
a lease the VAT is spread over the period of the lease and is applied to each monthly instalment. The tax advantages -
which is the most efficient for the customer, depends on various factors such as the timing of his financial year
- Length of finance term
Minimum of one year - two, three or
four years common, five years or more only for "blue chip" customers. Can be anything in between, for example: 18
months to match an 18 month contract that the customer has won.
HP and lease rates are much the same,lower rates apply for large deals (£100k+), or higher for small deals (<£20k) and
for poor credit customers.
The actual costs can vary depending on a) the £ value of the sale, b)
the credit worthiness of the customer and c) how the payments are structured e.g.: with or without a
- Payment terms and schedules
Payments are usually monthly
or quarterly. "Blue chip" customers such as colleges, police and local government, or large
can pay six monthly or annually and "in arrears", i.e. nothing to pay for six or twelve months. Lack of budget is no
excuse for not buying from you!
You can offer hire companies and sole traders, etc. a 1, 2 or 3 months payment
"holiday" after installation, so that they can generate income from the product before having to pay for it. You still
get paid in full on delivery, of course. But "install now pay later" will often enable a prospect, whose cash flow is
very tight, to afford to buy from you.
- Amount you can finance
Any sale over £1000 in
capital cost. Some of our funders only like deals over £500,000 while others prefer less than £50,000 for
example. "Horses for courses".
- On or Off balance sheet leasing
Corporate customers who
have spent their capital expense budget for their financial year, cannot commit to a significant purchase even if it
leased or put on HP. Under the right circumstances we can arrange an "operating" lease which is essentially long term
rent, not a "Cap-Ex" transaction, and so "off" balance sheet. Good for UK subsidiaries of larger UK, US, Japanese
parent companies and for closely audited organisations such as police and education authorities.
- Who is eligible for leasing and HP?
Any business - self
employed, limited company, plc, partnerships, charities, etc. - that can show it is in reasonable shape financially and
is based in the UK or Southern Ireland. Start up ventures can be fundable for leasing, but need careful evaluation by
APT Finance first.
- How do I use finance as a sales
Quote an approximate monthly rental when you quote the cash price by using the three year
e.g.: "£27,000 or approximately £900/month" (£27k x 33 = £891).
customer shows any interest in the monthly rental, call us and we will sort out a finance package that best suits his
circumstances and gets you the order.
Addition to Short Term Funding
| Addition to Long Term
| Click here to see recent projects involving suppliers/vendors
For further information on becoming a business
please contact us or
use the Business Partner
+44 (0)1491 642077
+44 (0)1491 642078