Loan terms and lending criteria

Under a Finance Lease(link to page), the business takes responsibility of the asset but this is never formally owned.  There is usually no deposit required and the VAT element is spread out over the term of the lease.  At the end of the agreement, a business can enter into a secondary lease or sell the asset to a third party.

With Hire Purchase (link to page), a deposit is usually required, with a minimum payment of VAT only up to 25% of the net cost plus VAT. Part exchanges can be used to form part or all of a deposit contribution.

Finance terms can vary from 12 months to 10 years, and may include the option for a final balloon payment.

Pricing & Fees

Pricing is often dependent on the credit quality of the business as well as the vehicle quality and saleability.

A documentation or administration fee ranging from £100 – £500 is typically due with the first monthly instalment.  An option to purchase fee of up to £200 will likely be due with the final repayment.