Capitas Finance | Asset Finance

Contract Purchase

Avoid the risk of depreciating assets

Companies who want to own their vehicles, but avoid the risk of depreciating assets often prefer this option. This method of funding is ideal if you cannot fully reclaim VAT and is particularly suitable for financing the more prestige vehicles on the fleet.

Key features and benefits of Contract Purchase:

• Single, fixed monthly payment takes encompasses the value of the car, depreciation rate, contract term, mileage and any additional services you may wish to build in
• Maintenance and value added services can be included
• Capitas will guarantee the resale value of the vehicle at the end of the contract purchase agreement for a known, fixed amount
• Choose to include maintenance cover, with full breakdown and recovery service, keeping drivers on the road without involving the company in complex or expensive administration

The big difference between Contract Purchase and Contract Hire is that you have the option to purchase the vehicle at the end of the contract period. A ‘balloon payment’ is payable which, once settled, makes you the legal owner of the vehicle. Alternatively you can return the vehicle to Capitas.

Commercial Loan

Capitas treads where other funders fear to go

It is a fact that the number of asset finance providers in this area is limited - and so are their capabilities and offerings.

Capitas stands apart, offering credit-qualified clients a long-term financing strategy with flexible funding options and competitive rates that can help manage risk, improve cash flow and reduce costs. With a commercial loan, you can hold onto your cash longer and use it for other investments - or simply use the facility to provide a financial cushion.

Payment can be made either directly to you in full, or alternatively, to your supplier(s). Whatever you purchase belongs to you. The advance is typically unsecured and not tied to your debtor book or a fixed asset.

Key features and benefits of Commercial Loan:

• Turn large upfront costs into affordable     monthly payments
• Match cost outlays to projected benefits
• Improve budget management with predictable     costs
• Increases return on investment and lowers     total cost of ownership  
• Accelerate project approval and implementation
• Preserve cash and credit lines for more     strategic investments
• Fixed rate funding enables you to budget with     certainty

Contract Hire

Hire your vehicles from Capitas

This is the solution for companies who want to concentrate on their core business activities, while avoiding the financial risk and administrative burden of owning their assets. Typically, Contract Hire is used to reduce the administrative burden of buying, servicing and disposing of vehicles.

You simply hire the vehicle from Capitas over a pre-agreed period at a fixed monthly cost. Capitas retains ownership of the vehicles - and the risks associated with them - and at the end of the contract they are returned to Capitas.

Key features and benefits of Contract Hire:

• Fixed rentals for the whole agreement, ensuring easier budgeting
• Flexible terms with variable mileage and duration terms
• Maintenance of vehicles can be included within the periodic rentals spreading the cost
• Contract hire removes depreciating assets from the balance sheet and the associated risks of owning vehicles
• Flexible invoice arrangements reduce administration

Project Finance

Project finance provides an on-demand financing facility that matches the scope and duration of your project ... and your finance agreement start date is deferred until the project is successfully completed!

This facility is specifically designed to help customers manage particularly large or protracted equipment acquisitions from single or multiple vendors.

At the outset of the project, you and your vendor(s), agree with Capitas the likely duration of the project and the approximate total contract value. These facts are then used as the basis to arrange both an ‘Interim Finance Facility’ (IFF) for the project period and the finance contract to accommodate the completed equipment installation. The interim arrangement then allows you to commence the project, secure in the knowledge that the equipment vendor(s) can be pre-paid throughout the delivery and installation phase. Interest payments due on equipment delivered before the end of the project can be conveniently rolled into a periodic payment as part of the finance agreement.

You can concentrate on managing the project, as opposed to managing numerous finance agreements with varying payments and end dates. You also get the equipment on a ‘have now, pay later’ basis and need not utilise valuable capital to make deposit payments.

• Particularly useful for large single or multi-site installations with purchases made over a protracted period
• Interest payments due on equipment and services deliveries over the duration of the project period can be rolled into the finance arrangement
• One single finance agreement commences at the end of the project once the equipment has been successfully delivered and is in working order
• Interim facility period of typically between 3 months to 1 year followed by a finance agreement term typically over 3 to 7 years depending on asset type

Sale & Leaseback

Enjoy the benefit of releasing cash

Your business assets may meet current needs but will they adapt to meet future needs? If disposal is not an option, you could consider a sale & leaseback. Capitas can purchase your existing 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 assets, 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
• Removal of *assets from the balance sheet
• Return your equipment at the end of the lease term and eliminate all costs and headaches associated with asset disposal
• New for Old on certain types of assets, you can benefit from our disposal routes to release the cash value of these items and replace them with new under a managed service or contract hire type arrangements
• Structure your lease to include product refresh options, ensuring you have the assets you need for your growing business

* Typically for vehicles

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 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

The simplest way to finance your assets

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

* Special rules apply to company cars

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. 

• 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*
• Capitas 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

* Special rules apply to company cars

Asset Finance

If you’re thinking about new equipment, we can help.

Unlike some lenders, we’ll fund up to 100 per cent of your total costs. And with competitive rates, fixed or variable rate options and customised payments schedules, we can tailor the advance to your exact specifications.

Critical assets

We offer many years of hands-on experience in helping private and public sector organisations like yours invest in business critical assets. We also provide funding to private individuals for certain asset classes including passenger cars, equestrian equipment, marine and aviation.