FAQs
with Bibby Financial Services doing business is straightforward and easy…
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What are the minimum and maximum amounts you will finance?
The minimum is £1,000 and the maximum is usually £1million.
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What is the difference between Hire Purchase and a Finance Lease?
With Hire Purchase ownership passes to the hirer at the end of the contract for an Option to Purchase Fee. It normally requires at least a minimum of the VAT as a deposit. The VAT can then be reclaimed from the purchase on your next VAT return. No VAT is payable on the rentals.
With a Leasing Finance solution all the VAT applicable to the cost price of the equipment is paid by the leasing company. You pay a rental fee for the lease of the equipment, which will attract VAT that can be reclaimed in the normal way. The lease rentals paid are fully allowable against tax and under certain circumstances can be a very tax efficient way of acquiring new equipment.
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What type of equipment can I finance?
Most types of equipment can be financed including catering, machinery, beauty & leisure as well as commercial vehicles. However there are items that we would prefer not to fund such as cars, telephones, CCTV, photocopiers, mailroom equipment, scaffolding and software.
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How do I make my payments and how often?
You make a regular ‘rental’ payment by direct debit via your business bank account. In most cases payments are made monthly, but there are exceptions when payments can be made quarterly, half yearly or annually.
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What happens to the equipment if I sell the business?
The lease is non transferable. Any outstanding rentals must be paid before title can be passed in the equipment to allow a sale as part of the business fixtures and fittings.
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What happens to the equipment at the end of the lease?
The equipment is sold to a third party (this could be the original supplier of the goods). They will then offer to transfer ownership to you for a small payment.
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The business I operate is seasonal. Can I reduce my payments at those times when business is slow?
In certain circumstances we can offer seasonal payments i.e. high and low rentals to accommodate the seasonal operation of the business.
