ASSET FINANCE PRODUCTS
The following information (and associated pages) are for information purposes only and should not be interpreted as advice, please seek specific independent advice as required on any of the following products.
Leasing and hire purchase are financial products designed to allow a business to use an asset over a fixed period in return for regular payments. The client sources the asset to be purchased by Liberty, but it is insured and maintained by the client. Monthly payments are effectively secured against the asset or vehicle.
Why choose hire purchase or finance lease?
| Question | Lease Purchase (HP) | Finance Lease |
|---|---|---|
| Will we own the asset? | Yes | No |
| Can the asset be invoiced by Liberty to a third party at the end? | No | Yes |
| Is this a Fixed Rate product? | Yes | Yes |
| Is this on a fixed term agreement? | Yes | Yes |
| Is there a secondary rental period? | No | Yes |
| Is the asset off balance sheet? | No | No |
| How is VAT reclaimable? | All on day 1 | Monthly |
| Does this product ease cashflow | Yes | Yes |
| Can a residual ‘balloon’ payment at the end be used to decrease the monthly commitment | Yes | Potentially |
| Can payments be structured seasonally/staged | If appropriate | If appropriate |
| Can we overpay? | Subject to approval | Subject to approval |
| Can we use this product for refinance purposes | Yes “Sale and HP Back” | Yes “Sale and Leaseback” |
