Asset and Motor Finance

At Thames Valley Asset Finance we have developed a comprehensive suite of finance products. This enables us to provide clients with effective, tax efficient and cash flow structured funding solutions. Our key financial products are...

Hire Purchase
A traditional method of acquiring assets and still the most popular with most UK businesses. The asset is capitalised in the balance sheet with the client taking the risks and rewards of ownership. Enables the asset cost to be spread over a period of time, thus preserving working capital. Title in the asset rests with the lender until the loan is repaid

Lease Purchase
Similar to Hire Purchase and again an “on balance sheet” facility. Key difference is that the
repayment of the loan can be structured around the perceived future value of the asset and/or the cash flow of your business. Repayments can be calculated around the seasonality of your business if required. A capital element of the loan can also be deferred until the end of the finance agreement thus reducing the loan repayments*
*typically referred to as a balloon payment

Finance Lease
Essentially a “hire” contract between a lessor (the lender) and a lessee (customer) for an asset over an agreed period of time (the hire period). A funding facility that allows a client full use of an asset without actually gaining title. The motivation for using a finance lease can be for many reasons, primarily tax benefits or the cash flow advantage due to the treatment of the VAT on the lease rentals

Operating Lease
As with a finance lease, this is a “hire” contract. The major benefit is that this is often treated as “off balance sheet” and thus a cosmetic manoeuvre as deemed to not affect the borrowing of the business. Acquiring assets in this way is not view as capital expenditure. At the end of the lease the lessee (customer) has a number of options including extending the hire period or returning the asset

Sale and Leaseback
A popular method of releasing cash back into a business by way of refinancing existing “owned” assets. Deal structure is identical to a finance lease and it is a common method of raising monies to fund expansion, product development and acquisitions/mergers

Chattel Mortgage
A loan secured by a charge over assets owned by the business already. This facility is used where a business wishes to own the goods but has already purchased them. In this scenario a Hire Purchase facility cannot be entered into. The loan is secured by way of a charge over the asset being funded. Because of the way the loan is secured a Chattel Mortgage is not suitable for vehicles and small items of plant

Premium Funding
Available for professional practices such as Accountancy and Legal firms. Allows the annual cost of Professional Indemnity Insurance to be funded via a loan facility, available for periods of up to twelve months. Preserves cash flow and spreads premium cost.

Commercial Loan
An unsecured loan facility, available for assets that offer little or no real tangible security. Often used to fund software licences, refurbishment costs, small items of plant and ancillary office equipment. No charge taken over the assets to be funded