Business User Finance

There are several more finance options open to the Business User compared to the private individual. As well as being able to utilise HP and PCP products, the business user also has Lease Purchase, Finance Lease and Contract Hire. Business Contract Hire A fixed term agreement based upon a predetermined annual mileage, Contract Hire removes the risk of depreciation and regularizes cash flow with a fixed monthly payment including road fund licence. Additional services can be arranged to include vehicle servicing and maintenance, tyres, breakdown assistance, and relief vehicle facility. The ability of the Funder to reclaim all of the VAT on the purchase price in turn reduces the monthly payment in comparison with a purchase plan. Benefits of Business contract hire: * The rentals are tax deductible * Initial payment requirements are generally low * Pre-determined costs and fixed term smooth out cash flow * Accurate budgeting with minimal administration * Contract Hire can include maintenance and vehicle servicing * No purchasing or disposal hassles * No risk of depreciation * The contract hire company is able to reclaim all the VAT of the purchase price of the vehicles, which is reflected in much lower overall costs Finance Lease A contract based upon a pre-agreed period to simply finance the acquisition of a vehicle. The capital cost is spread over the term and typically incorporates a final payment based upon the predicted resale value determined by the anticipated annual mileage. VAT on the original purchase price is reclaimed by the Funder, which allows the monthly costs to be reduced to reflect the VAT saving. Finance Leases can be terminated early and allow greater flexibility although depreciation risk remains with you. The vehicle is sold to a third party at contract termination and provides the opportunity for you to benefit from any available equity. For more details on these products, and their suitability for your requirements, please contact CDC Finance on 07725 571135