SDC Financial Services
There are a wide range of flexible finance options available which can be tailored to your needs, including hire purchase, finance lease or operating lease. SDC’s finance partners can help you make an informed choice on which finance option will suit you best.
Finance Lease allows the use of the asset without ultimately taking ownership, VAT is paid on the rentals rather than the capital cost, reducing initial cash out lay.
The customer still has the benefit of claiming capital allowances on the purchase.
Customers can then retain the majority of sales proceeds (typically a minimum of 95%) when the assets are eventually disposed of.
Sometimes referred to as 'Lease Purchase', Hire Purchase is often the simplest form of finance and suitable for all VAT registered businesses.
It provides a high level of flexibility in respect of initial deposit with anything from 5% - 50%.
At the end of an agreed fixed period, the customer has the option to own the asset outright for the payment of a nominal fee.
SDC can offer many different Hire Purchase options including;
- Fixed-rate hire purchase
- An accelerated payment plan
- A seasonal payment plan
- A variable rate hire purchase
- A balanced payment plan
With an Operating Lease, the customer will pay an agreed fixed monthly rental (+ VAT) for the use of the asset for a defined period.
The borrowings are currently treated as “off balance sheet”, therefore minimising debt ratios.
At the end of the agreement, the asset is returned (subject to return conditions) or extended for a further 12 – 36 months.
This results in lower repayments and eliminates the risk of depreciation.