Fleet Rental Finance
Short and medium term funding for vehicle rental operators
Capitas can provide short and medium term funding to vehicle rental operators and accident claims organisations. Our commercial vehicle finance team has many years experience in providing revolving debt and HP/Leasing facilities to this sector. We can provide incremental funding lines, low cost of borrowing and balance sheet support.
Key features and benefits of Fleet Rental Finance:
- Facilities are independent of in house banking limitations
- Tailored and tax compatible finance solutions
- Targeted debt facilities which are ideal for passenger cars and light commercial vehicles
- Low cost borrowing and an additional source of funds to traditional borrowing arrangements
- Lifetime value placed on relationships
- No additional security needed
Wholesale Finance
Back to back funding arrangements for your portfolio of customer debt
Capitas can help you provide asset finance to clients by funding your portfolio of customer debt acting as your silent funding partner. Utilise our expertise in risk financing and access to capital to divest yourself of your portfolio of finance.
Key features and benefits of Wholesale Finance:
- Our specialists know wholesale finance
- We’ll meet your exact needs and provide tailored financial solutions
- We have access to capital and are ready to advance
- Exceptional level of customer service
- You may structure on a disclosed or undisclosed basis
In brief, you still manage your customer assets but pass the debt element to Capitas.
Retail Finance
Capitas retail solutions – helping you sell more cars more often
A reduction in the number of funders combined with a general tightening of credit underwriting and a slowdown in the amount of money to lend means the retail finance is changing. The “assumption” that finance houses will fall over themselves to capture dealer accounts, which in fairness has been the position for the past 20 years, is not going to be the position going forward.
Many dealer groups are already experiencing changes to existing retail rates and terms from incumbent manufacturer finance arms and finance houses. With more rigorous KPIs and tougher credit procedures many dealers are reviewing their retail finance operations and looking at alternative or complimentary funding lines.
Whether as an exclusive partner or as a member of your finance panel, Capitas Finance can provide Specialist Motor Finance Solutions to support every opportunity and augment your existing arrangements. We have the appetite, capacity and ability to offer more flexible terms and a wider range of products in showrooms to help consumers cope with current conditions. We offer “Complementary Solutions” to help you sell more vehicles in difficult times by making the vehicles more attractive to potential customers.
Our panel includes the majority of leading Motor Finance Companies in the UK aswell as joint venture arrangements with ‘Own Book’ capability. We understand the strengths and weaknesses of each lender. Using our expertise and relationships you can gain access to all the best Motor Finance Solutions for prime, near-prime and sub-prime business in the market place including:
- Prime, near-prime and sub-prime facilities
- High loan to values
- High residual values
- Broad range of facility structures including Balanced Payment Plan, Hire Purchase, Lease, Contract Hire and PCP
- PCP on used vehicles up to 5 years old
- PCP terms up to 60 months
- Negative equity loans
- Competitive rates
- Web based calculators incorporating online finance, insurance and vehicle retailing software
In summary, you get the best of each company without having to have a host of lenders to manage. You also benefit from Capitas Finance’s buying power ensuring you get the best products at the right price.
Unit Stocking Plan Online
Innovative stocking solutions for new and used vehicles
Capitas provides a web enabled real-time wholesale finance solution with inventory stock funding and integrated loan functionality. Retail operations can access information online to monitor and maintain accounts, helping to streamline and automate the stock funding process between your operation, manufacturer and Capitas.
Flexibility and Control
Real-time views of inventory, available credit, vehicle detail and history allows you to manage your stock efficiently and effectively. A real-time interface to HPI or Experian enables all parties to quickly retrieve vehicle and finance information. Parameters within the finance plan are set to automatically accept, refer or reject vehicles based on its pre-defined business rules. Depending on Capitas own credit criteria, checks may be carried out for:
- Outstanding Finance
- Plate Change
- High Risk
- Import Alert
- Stolen Alert
- Condition Alert
Sophisticated workflow technology allows Capitas to assign and track work throughout the stocking period. Our Wholesale Finance System is able to separate and route funding decisions based on the vehicles credit status, helping to facilitate high volume unit processing for maximum profitability, whilst minimising risk exposure.
Stocking Finance
Focus on managing your stock, and leave its financing to us
There is a growing pressure on automotive retailers to stock an ever-wider range of vehicles and this can place a hefty burden on retail operations cashflow. At Capitas, we provide innovative stocking solutions to many of the UK’s top 200 motor dealership groups. Using fully automated electronic transfers, we can keep your business financed and reconciled on a daily basis. It is all about transparency, so you know where you stand each and every day of your operations.
Features and benefits of Capitas Vehicle Stocking Plan:
- Flexible financing programmes for both new and used inventory
- Competitive rates and terms
- Specialised inventory financing plans to suit your specific product needs
- Term loans and working capital loans
- Account management by seasoned professionals who know your sector
- Unit Stocking Plan insurance available
- Fast turnaround on requests for funding line extensions and new lines
Sale and Leaseback
Enjoy the benefit of releasing funds
Purchasing a vehicle fleet ties up valuable cash resource at the front end and involves the risk of unpredictable resale values at the back end. By selling the fleet and leasing it back, your company will benefit from fixed a monthly cost – which means you can budget more effectively.
Key features and benefits of Sale & Leaseback:
- Vehicles purchased for cash by Capitas in a simple paper transaction
- Cash injection into other projects allowing improvements on various gearing ratios
- New for Old - clients using our sale & leaseback scheme can benefit from our disposal routes to release the cash value of those vehicles and replace them with new vehicles under contract hire from Capitas
Finance Lease
All the benefits of ownership without the burden
If your business is registered for VAT, there may be good financial reasons why leasing is for you. You retain full use of a vehicle for an agreed period of time for an agreed periodic rental. It offers all the practical benefits of ownership without any of the potential burdens.
Key features and benefits of Leasing:
- Working capital preserved - payments spread over the life of the asset
- Allows vehicles to be updated as old ones need replacing
- Fixed monthly costs for greater control of cash flow
- Rentals may be offset against your taxable profits subject to HMRC rules
Balanced Payments Plan
Hire Purchase with a difference
Balanced Payment is a finance option with the advantage of fixed monthly payments. However, unlike Hire Purchase, where the interest is fixed, balanced payment plans track changes in the Base Rate. As rates fall or rise over the period of the contract, so does the interest charge you pay.
You pay an initial deposit, and repay the balance in fixed monthly payments over an agreed period. At the end of the term any variation of interest is reconciled and will be settled as either a credit to you, or a charge. Alternatively, the term can be shortened or extended. Other options available with Balanced Payment Plan include a deferred final ‘balloon’ payment, or settling your agreement early with a lump sum payment.
Key features and benefits of Balanced Payment Plan:
- Low deposit - cash can be used to drive other areas of the business operation
- Flexibility - optional lump sum payments
- Competitive - low cost options for early termination
- Fixed monthly payment - perfect for budgeting
Hire Purchase
What could be easier
Hire Purchase is a straightforward repayment facility which enables you to ultimately own the asset. Payment patterns can be tailored to suit individual needs, generally involving a deposit followed by a series of periodic instalments over one year to five years. You may also delay paying some of the vehicle’s cost until the end of the agreement by structuring a balloon payment.
Key features and benefits of Hire Purchase:
- With ownership you have total control over the asset
- Ownership normally carries the potential for claiming writing down allowances and/or capital grants, including any enhanced first year allowances
- Fixed or variable interest rate - you make your own assessment and choose accordingly
- The asset appears on your balance sheet
Vehicles
Capitas funds commercial vehicles that you need to run your business operation using a broad range of Asset Finance structures.
Whether you need a transporter to deliver customer vehicles or vans to run a TPS (Trade Parts Strategy) programme, our range of financial solutions can fulfil your precise requirements.
Capitas also provides Stocking Finance for many of the UK’s top 200 motor dealership groups for cars, motorbikes and commercial vehicles. Using fully automated electronic transfers, we can keep your business financed and reconciled on a daily basis. It is all about transparency, so you know where you stand each and every day of your operations.
In addition, Capitas can provide Retail Finance as an exclusive partner or member of your funding panel augmenting existing arrangements. Capitas has some of the broadest motor finance solutions in the sector and the expertise to bring them to life, setting you apart from your competitors or at least putting you on a level playing field. Our panel of funders includes the majority of leading motor finance companies in the UK as well as joint venture arrangements with ‘Own Book’ capability.
Furthermore, Capitas provides Wholesale Finance. This is particularly suitable for automotive retailers writing their own contract hire paper for business customers, especially where there may be large investment costs at the start of a contract. We are able to provide disclosed or undisclosed agency structures with flexible payment terms of up to 5 years, coinciding with any qualifying contract. We will present value either a partial or full amount of the contract value upon signing depending on status.
Lastly, Capitas provides revolving debt and HP/Leasing facilities to Fleet Rental Finance operators within the sector.