Operating Lease
Making ‘off-balance sheet’ funding possible
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 the equipment for an agreed period of time for an agreed periodic rental. This is a popular flexible method of funding for pre and post press equipment. 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 equipment 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 the asset at the end of its useful working life
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
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 print equipment, we have the industry knowledge and financial expertise to design a finance solution to suit print shops 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 print equipment that we finance; the dynamics of these assets, their values, their working life, together with an understanding of the print industry
- Smart solutions – strategic thinking enables Capitas to deliver reliable, flexible and competitively priced products
- Tax based financing – we’ll address preferences for on or off balance sheet funding and advise on how this will choice will affect your tax position
- Flexible finance – choose facilities that enable you to own, lease or hire for all types of print equipment, from a web press to a folding machine
- 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
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.
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
Investing in a printing press represents an enormous investment in time and money on equipment that will be a crucial part of your business for many years to come.
Capitas can help you with attractive financing solutions tailored to your exact requirements. Our funding service is personally delivered by experienced and knowledgeable print finance specialists, with an outstanding understanding of the challenges facing the print media industry.
It has become increasingly difficult for businesses within the graphics arts industry to obtain financing from their traditional routes. This is due to a combination of factors including capital restrictions being placed on the major banks’, deteriorating client financials statements due to the economic downturn and a decreasing importance in the evaluation of capital goods as security. As a consequence the demand for alternative financing solutions from print shops is rising and Capitas is stepping in where the banks have stepped out. Print Finance from Capitas is a strategy for gaining a variety of benefits - we can provide you with:
- Technical and financial understanding of all types of print equipment including lithographic, web and digital presses, pre-press systems, packaging equipment, bindery, guillotines, folding machines and other print finishing equipment
- Direct relationships with the major manufacturers in the industry
- Complementary specialist funding lines
- Bespoke project based funding solutions to support larger capital investments for print equipment
- Transactions in Sterling, US dollars and Euros
- Hire Purchase, Lease Purchase, Finance Leasing and Operating Leasing, including funding for stage payments while the equipment is being manufactured