Capitas Finance | Plant & Machinery

Operating Lease

Helping cash flow, making ‘off-balance sheet’ funding possible

Operating Leasing is 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.

Benefits of Operating Leasing:

• 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

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.

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

Hire Purchase

What could be easier?

Hire Purchase is a straightforward repayment facility that enables you to ultimately own the asset. The cost of an asset 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.

Benefits of Hire Purchase:

• With ownership you have total control over the asset
• You have the ability to claim writing down allowances and possibly capital grants
• 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

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 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 Payments 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

Benefits of Capitas

Finance is just the beginning

In today’s marketplace, simply offering the best financing product is no longer sufficient. We understand you need a reliable financing source that knows the importance of responding quickly to opportunities. Regardless of your current or projected financing needs, we are confident that Capitas can offer you a better alternative.

Whether your requirement involves new or used plant, machinery or machine tools, we have the industry knowledge and financial expertise to design a finance solution to suit producers and operators of all sizes.

Why you should choose Capitas as your financing partner?

Simply, it’s because we offer you: 

• Asset class expertise – our people are senior ‘hands-on’ professionals who understand the different types of plant and  machinery that we finance; the dynamics of these assets, their values, their working life, together with an understanding of the industries our clients work within
• Smart solutions – strategic thinking enables Capitas to deliver reliable, flexible and competitively priced products for different vertical markets
• Tax based financing – we’ll address preferences for on or off balance sheet funding and advise on how this choice will affect your tax position
• Flexible finance – choose facilities that enable you to own, lease or hire for all types of plant and machinery, from an excavator to a complete production line
• End of term clarity – we offer straightforward options with ‘no suprises’ when the finance term ends
• Lifetime relationships – we put great value on building strong relationships and communicating with our clients; our aim is to support your business growth and become your one-stop funding partner

Plant & Machinery

Company owners in all types of industry from construction and manufacturing to waste management and recycling know that the latest plant and machinery can provide a decisive competitive edge.

Whether you are acquiring heavy equipment, waste & recycling equipment, construction equipment, plastics machines, packaging machines, agricultural machines, machine tools, the costs can be considerable and it makes good business sense to free up capital. Our asset finance solutions can help your organisation’s cashflow, capital expansion plans, tax strategies and balance sheet requirements. Plant & Machinery Finance from Capitas is a strategy for gaining a variety of benefits: 

• We analyse and tailor the finance solution to your cashflow requirements
• Our flexible terms mean you can match the finance term to the planned use of the equipment – particularly useful if the equipment is needed for a specific contract
• We can take on the residual value risk through our operating lease products or structure balloon payments on vanilla type arrangements such as Hire Purchase to reduce periodic repayments
• Our operating lease products also give you maximum flexibility to either return, purchase or re-hire the equipment at the end of the agreement
• Our financial solutions are tax efficient and comply with current accounting standards

We can provide Euro finance to help you avoid the risk of currency fluctuations and perhaps benefit from lower interest rates in the Euro zone