Asset Finance
Acquire assets. Optimise cashflow.
Expand your business without tying up your finances. At Clydesdale Bank, our Asset Finance experts can provide you with cost-effective solutions and give you the flexibility to invest for the future. Our Asset Finance solutions can provide simple, one-off asset funding through to more complex requirements and transactions, in the UK and abroad. Our experience helps your business grow.
| Need | Solution | Benefits |
|---|---|---|
| Finance new assets with the freedom and flexibility of a cash buyer | Hire Purchase | - Purchase an asset without having to pay the full amount up-front - Low initial outlay and flexible payment patterns - No VAT on repayments - Own the asset on the agreement maturing and payment of a nominal completion fee |
| Acquire further assets without significant outlay | Finance Lease | - Full use of asset with no capital outlay or up-front deposit needed - Choice of flexible payment patterns - Receive some proceeds from the asset sale at the end of the term |
| Cut your costs and improve your cash flow | Operating Lease | - Fund assets based on their planned economic use, rather than their life expectancy - No initial outlay and fixed repayments help cash flow and budget planning - Rental rather than repayment |
Some of the industries that can benefit most, include:
- Manufacturing
- Agricultural
- Printing
- Haulage
- Engineering
- Packaging
- Material handling
- Plant hire
- Transport (bus, coach and vehicle rental)
- Food processing
- Marine
Features
| Feature | Hire Purchase | Finance Lease | Operating Lease | Euro Funding |
|---|---|---|---|---|
| Customer claims capital allowances |  | | ||
| Eventual ownership | | | ||
| No depreciation risk (except for excess usage) | | |||
| Off balance sheet | | |||
| Interest allowable against tax | | | ||
| Rentals allowable against tax (some restrictions for cars over £12k) | | | ||
| Working capital & cashflow benefits | | | | |
| Fixed, Variable or Tailored funding options | | | | |
| Fixed term and repayments/rentals (subject to change in VAT) | | | | |
| Service and maintenance required | + | |||
| No VAT on repayments | | | ||
| VAT on asset cost reclaimable | | | ||
| VAT on rentals reclaimable (50% restriction on cars with private use) | | | ||
| No asset disposal problems | | |||
| Receive or share in proceeds from asset sale | | | |
+ Possible Standard (apply in most cases however there may be circumstances in which they do not apply).
To find out more, contact your Agribusiness Partner, arrange a visit to your local Financial Solutions Centre or call 08457 03 45 67.
Tax treatments are in accordance with current Statements of Accounting Practice. The VAT and other tax restrictions described apply to new and some used cars. The restrictions do not apply to commercial vehicles and other assets. The value of any tax benefits to you depends on your individual circumstances, the Law and Her Majesty's Revenue & Customs (HMRC) practice, which are subject to change.
The information given on these web pages is for guidance only. It is not intended as a substitute for professional advice, and you should ask your accountant and solicitor to advise you on the implications for your business of any of the options shown above, as these may vary depending on your business circumstances.
We make no warranty that the information supplied on these pages is complete or accurate, and will not be liable for any loss or cost, whether direct or indirect, arising out of access to or use of these pages.
Finance Lease, Hire Purchase, Operating Lease and Euro Funding provided by Clydesdale Bank Asset Finance Limited. Clydesdale Bank Asset Finance Limited is an appointed representative of Clydesdale Bank PLC.
Terms and Conditions apply. All facilities are subject to status and applicants must be aged 18 or over.
Clydesdale Bank PLC is authorised and regulated by the Financial Services Authority. Credit facilities other than regulated mortgages are not regulated by the Financial Services Authority. Clydesdale Bank PLC, Registered in Scotland (No. SC001111), Registered Office: 30 St. Vincent Place, Glasgow, G1 2HL. A member of the National Australia Bank Group of companies.
