Hire Purchase

Own your asset while spreading the cost

Hire purchase – otherwise known as lease purchase – is a simple repayment facility, where you eventually own the asset at the end of your agreement with Arblease. There is great flexibility with this type of asset finance. We can structure it in various ways, with a flexible deposit, fixed payments and perhaps a balloon final lump sum.

Hire purchase benefits include;

Total control – the asset is yours at the end of the agreement
Flexibility in your repayments – makes for easy budgeting
Fixed Ratefixed monthly instalments allowing you to plan for the future
Fees tax deductible arrangement fees and annual service fees may be charged by the lender
Tax advantages – normally you can claim writing-down allowances and perhaps capital grants, while repayment interest may be offset against profits and VAT is usually reclaimable (special rules apply to cars)
VAT – is paid all upfront in one simple payment
Ownership – is transferred to you at the end of the agreement

Finance Lease

The benefits of ownership – without the downsides

Monthly payments can be matched to your cash flow. At the end of this commercial leasing agreement, you can sell the asset and you receive 100% of the proceeds. The benefits of ownership with fixed rentals enabling you to plan and manage your business cash flow.

Finance Lease benefits include;

Low up-front costsfor just a small outlay, you can use the assets immediately
Spread the VATpay the vat on each installment as you go
Flexible repayment structurerental payments can be tailored to match your cash flow
Fixed interest optionsyou decide which suits you best for your cashflow
Tax advantagesVAT is payable on the rentals, not the purchase price, while payments can normally be offset against taxable profit (special rules apply to cars)
Fees – tax deductible arrangement fees, annual fees and secondary period fees may be charged
You own the future value – once you have paid all your monthly instalments you can sell the machine and you will retain *100% of the sale proceeds (*confirm with Arblease and finance companies can vary) 

Contract Hire

Low deposits, tax efficient and stream line cashflow.

Contract Hire is a fully inclusive way to rent equipment with servicing costs rolled into rental payments. These payments are a business expense and if the agreement is recognised as an Operating Lease, sit off-balance sheet. This makes Contract Hire a smart way to access the latest equipment that may improve some key accounting ratios whilst minimising risk. At the end of the contract the equipment is returned to us. If all return conditions are met, there’s nothing more to pay.

Contract Hire benefits include;

Low deposit – Low initial cost with all payments (including VAT) repaid across the contract period
Tax efficient – Tax efficient because rental payments count as a business expense
Great for cashflow – Allows accurate budgeting with minimal risk

Important: Finance is for business purposes only in the UK excluding Northern Ireland. Finance subject to status, terms and conditions.