Sale and Leaseback
Enjoy the benefits of releasing cash
Capitas can purchase your existing dealership assets, dependent on the book value and specific requirements, and lease them back to you for the remainder of an agreed term. This popular choice releases capital tied up in the equipment, straight into your company’s reserves.
Key features and benefits of Sale & Leaseback:
- Enjoy an immediate injection of cash from the sale of the assets
- Can include certain capital and tax advantages and improve key ratios such as gearing
- Simple paper transaction which is easy to administer
- Structure your lease to include product refresh options, ensuring you have the assets you need for your growing business
- Return your equipment at the end of the lease term and eliminate all costs and headaches associated with asset disposal. Alternatively, acquire continued indefinite use or take title to the equipment via a sales agency for a pre-agreed nominal sum.
Operating Lease
Making ‘off-balance sheet’ funding possible
Particularly effective for selective moveable assets of higher value. Capitas builds in a residual value to reduce the rentals, therefore helping cash-flow and making ‘off-balance sheet’ funding possible. Although you will never own the asset, an operating lease does offer you the practical benefits of ownership without some of the potential burdens.
Key features and benefits of Operating Lease:
• Rentals are based on the planned economic usage of the asset – not the life of the asset
• Capitas takes the residual risk on the equipment’s value
• Rentals are structured according to your cash-flow
• Rentals can normally be offset against taxable profit*
• The asset is treated as ‘off’ balance sheet - we will claim the writing down allowances and reflect this in the rentals that you pay
• Off-balance sheet funding means no requirement to depreciate
* Special rules apply to company cars
Hire Purchase
What could be easier
Hire Purchase is a straightforward repayment facility that enables you to ultimately own the asset.
The cost of equipment can be spread over its useful working life and paid for out of the revenue it earns. Payment patterns can be tailored to suit individual needs, generally involving a deposit followed by a series of periodic instalments.
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
- VAT on the cost of the asset is normally reclaimable
- Fixed or variable interest rate - you make your own assessment and choose accordingly
- The interest element of repayments can normally be offset against taxable profit
- The asset appears on your balance sheet
Finance Lease
All the benefits of ownership without the burden
A Finance Lease agreement gives you the full use of an asset for an agreed period of time for an agreed periodic rental.
This is a popular flexible method of funding a broad spread of business assets. It offers all the practical benefits of ownership without any of the potential burdens.
Key features and benefits of Finance Leasing:
- Flexible repayment structures give you immediate and full use of the asset for a minimal outlay
- Rentals can be structured to reflect cash-flow requirements
- Fixed interest rate provides certainty of repayments and assists budgeting
- Rentals can be offset against taxable profit
- VAT is paid on the rentals not the purchase price
- The lessor claims writing down allowances, and these are reflected in the rentals you pay
- Retains existing credit lines and gives you a new source of credit for current and future needs
- Eliminates risks and costs associated with disposing of assets at the end of their useful working life
Asset Finance
Leverage the power of your assets
If you’re thinking about new equipment, we can help. With our in-depth knowledge of wholesale, retail and after-sales operations, we can help you acquire the right equipment and services to ensure your continued success in the marketplace.
Funding 100% of your total costs:
Unlike some lenders, we’ll fund up to 100 percent of your total costs, including services and ancillary costs. And with terms up to 7 years, competitive rates, fixed or variable rate options and customised payments schedules and options, we can tailor the advance to your exact specifications.
Critical assets
We offer many years of hands-on experience in helping automotive companies like yours invest in business critical assets including:
- Dealer Management Systems
- Other IT Infrastructure
- Telecoms Systems
- Hoists, Lifts, Ramps & Tools
- Diagnostics Equipment
- Paint Spray Booths
- Signage
- New Showroom Facilities
- Audio Visual Equipment
- Furniture, Lighting & Flooring
- Security & Fire Protection Systems
- Mezzanine & Racking Systems
- Parts Carousels
- Heating & Air Conditioning
- Company Vehicles
- Building Remedial Works