FLEXIBLE FINANCE - FROM FIRST GROUP FINANCE
CP Sound has
devised a scheme to provide its clients with a flexible
financing option for equipment purchases.
Subject to status, CP Sound can provide you with leasing and purchase plans over any period between 6 months and five years, with payments tailored to your individual budget and cashflow.
Read below for some facts, and if you have any further questions, please click here for more information from our leasing company First Group or E-Mail us : finance@cpsound.co.uk
How It Works...
The finance company (the lessor) buys the equipment from us and then leases it to you (the lessee). You make monthly payments to the lessor via direct debit, and at the end of the lease or HP term, you can own the equipment.
Costs...
The cost is dependent on the purchase price (below £10,000 the interest rates are higher than purchases over, say, £50,000), your credit status and whether or not a deposit is paid.
As a rough guide, every £1,000 of equipment cost £90/48/32/26/22 per month over 1/2/3/4/5 years respectively. For example £23.600 plus VAT = 23.6 x 32 = £755/month approximately, over three years.
You...
You don't have to be a limited company to qualify - we can finance a sole trader, PLC, partnership, trust, non-profit making organisation, a charity, etc.
Deposit - or Not?
You can use the kit for up to three months after delivery before you commence the leasing payments - helpful for cash flow.
Information Needed?
If you are an established company and don't have excessive debts, then a copy of your most recent accounts is enough to get up-and-running. If you are a start-up company or self-employed, then we will need to profile you in more detail, and will need you to supply us with CV's, home address, references, etc - the usual sort of thing.
The Differences between Leasing and Hire Purchase?
| Hire Purchase | Leasing | |
| VAT? | With Hire Purchase - also called Lease Purchase - you pay all the VAT up front. |
With Leasing, VAT is applied to each installment. |
| Tax? | Both finance methods can be offset against your end-of-year taxable profits. |
|
| With HP you can claim 25% or possibly 40% of the equipment's cash price in the first year, then 25% in the second and this continues on a reducing balance each year. |
With Leasing, all the lease payments made in the financial year can be offset against your taxable profits for that year. |
|
| Ownership? | At the end of a Hire Purchase agreement, title to the goods passes to you for a small transfer fee - usually £50 - £100. | At
the end of the Lease, you have two options...
(1) To continue leasing, but on a yearly basis, for a cost of about 2% of the original price (2) To buy the goods via a third party for around 3% of the original price. |
Which is best?
It depends on your cash or tax status. Ask your accountant!
Any further questions, please either
call and ask to speak to Linda Wordley
or E-Mail us : finance@cpsound.co.uk