Central Platform Services Ltd can provide asset financing for new or used machines sold through us. As an appointed representative of AFS Compliance Ltd we can introduce you to a wide range of finance providers depending on your requirements and circumstances.
We provide the following key finance products.
Asset Finance Products
When commercial organisations, whether sole trader, large corporation or public sector, wish to invest in tangible assets, they usually need an affordable, secure means of finance. Asset Finance is the third most common source of finance for businesses, after bank overdrafts and loans. The two main forms of Asset Finance are Hire Purchase and Leasing.
Hire Purchase (HP)
- Hire Purchase is a well-established method of financing for companies that wish eventually to take ownership of business assets.
- The finance company buys the asset on behalf of the customer, who then pays an initial deposit. The remaining balance, plus interest, is then paid over an agreed period. During this period, ownership rests with the finance company, who is effectively hiring use of the asset to the customer.
- Once the final payment is made, ownership transfers to the customer.
- Under a finance lease, the finance company owns the asset throughout and the agreement covers a set period – considered to be the full economic life of the asset. Often, there is an option to continue leasing at a reduced, or ‘peppercorn’ rate, at the end of the contracted period.
- As you are not the owner of the asset, you cannot sell the asset during the rental period.
- The finance company can claim the writing-down allowances and pass this benefit to you in reduced rentals.
Please ensure you have sought independent financial advice before seeking to finance at asset you will then be liable for repayments or replacement.