Richmond Asset Finance are dedicated to all your agricultural needs, including financing your farm machinery and agricultural equipment.
At Richmond Asset Finance we are dedicated to helping you invest in the productivity and future growth of your farm through good and bad times.
We provide you with easy to understand and affordable financing solutions that can be adapted to your circumstances. So whether you are an arable or livestock farmer, whether big or small, we have the financing solution for you.
We do more than simply provide financing, we build long-term relationships through trust.
Although you never gain ownership of the equipment, a finance lease is similar to hire purchase in that you make regular fixed repayments over an agreed period, fully paying the cost of the equipment. A key difference though, is that VAT is payable on each lease payment rather than paying the full VAT due on the equipment at the outset of the agreement. At the end of the primary leasing period a nominal ‘secondary lease period’ annual payment is charged for continued use of the equipment. Alternatively you can arrange for the equipment to be sold to an unrelated third party for which you will receive the full sales proceeds.
Another key difference to the hire purchase option is that whilst you cannot claim capital allowances, you may be able to offset the lease repayments against any taxable profit.
You are responsible for the maintenance and insurance of the equipment.
Key benefits of Finance Lease:
- The certainty of fixed term finance which can be withdrawn only if you do not keep to the terms and conditions of the contract.
- The regular nature of repayments, and fixed interest rate, makes budgeting easier.
- A cost effective way to fund your use of the equipment by spreading rentals over a fixed term.
- Enhanced business cash flow with the ability to spread VAT across the life of the lease agreement.
- A straightforward form of leasing which leaves you in a position to control the used equipment value.