Products & Services

Hire Purchase 

How it works

An agreement would be prepared for a customer (the Lessee) to ‘hire’ the asset from BPCE Equipment Solutions (the Lessor) for an agreed term in return for regular rental payments. 
  
The ‘Title’ (or ownership) is retained by us until the final payment is made along with a normal ‘Option to Purchase’ fee. 

Hire Purchase is suitable for any equipment your business wishes to own, and that may have a useful life beyond the finance agreement term. For example: printing presses, construction equipment, materials handling machinery, commercial vehicles and agricultural equipment. 

Features

• Ownership at the end of the agreement subject to a nominal ‘Option to Purchase’ fee 
• As the full VAT amount is due on commencement of the agreement the rental payments are not subject to VAT 
• ‘On balance sheet’ financing agreement 
• Capital Allowances can be claimed 
• Payment structure agreed at the outset for easy budgeting 
• Repayments can be matched to cash-flow and/or income stream 

End of term option for the customer

Ownership can pass to the customer upon payment of a nominal ‘Option to Purchase’ fee and/or income stream. 

3 year hire purchase agreement

Operating Lease

How it works

An Operating Lease lets your business benefit from fixed costs and predicted annual use.  The equipment remains the property of the Lessor (us) and will need to be returned at the end of the lease term. 

Operating Leases may be ‘off balance sheet’ for some customers dependent on the accounting standards adopted by the Lessee.* 

* This information is only relevant to those reporting under FRS 102 and not captured by the reporting requirements of IFRS 16. 

Features

• Lower rentals than a Finance Lease as they are based on the asset cost over the lease term and assume a ‘Residual Value’ of the asset 
• Rental and return conditions are known at the outset 
• Removes disposal process 
• Removes risk of asset depreciation 
• Low capital outlay 
• ‘Off balance sheet’ financing as rentals may be treated as an OPEX rather than CAPEX 
• Depending upon the asset type and term, your customer may be able to offset the rental payments against their taxable profit* 
• VAT is payable on the rentals, not on the purchase price of the equipment 
• Repayments can be matched to cash-flow and/or income stream 
• We are also able to collect and distribute services and/or repair & maintenance payments enabling your customer to manage the costs with one rental payment 

* Please refer your Customer to their Account of Financial Advisor for confirmation. 

End of term option for the customer

• Retain – agree extension rentals for another agreed term 
• Return – hand back the equipment to us

3 year hire operation lease agreement

Business Loan

As a Lessor we can provide a wide range of funding solutions to companies wanting to expand their business offerings by investing in new or used equipment. The majority of our finance agreements are secured on the equipment detailed in the transaction. However, not every investment can be directly linked to a piece of machinery or equipment.  As a consequence, and in specific cases, we also offer a Business Loan to support your business’ investment plans. 

In some instances, the Business Loan will need to be supported by a chattels mortgage over equipment within the business or other forms of additional security. 

Examples of situations where a Business Loan may be suitable include, dairy cows/replacements, buildings/sheds and building improvements, software funding and development, training and installation costs. 

Sale &HP/Sales & Lease Back

This finance option enables you to convert a recent purchase (within 90 days of original purchase from a bona fide supplier) to a finance agreement which releases cash back into your business.  BPCE Equipment Solutions would purchase your asset at an agreed value, and finance it back to you over a fixed period with repayments matching the income stream generated by the asset.   

The lease back option can be written on either a Finance Lease or a Hire Purchase agreement. 

Receivables

BPCE Equipment Solutions has many years’ experience in advising and establishing Receivables finance structures for the service and solution providers that we partner with across a range of industry sectors.  We are able to convert revenues generated from fixed term service and supply contracts into cash for the solution provider from the commencement of the contract, thus preserving working capital, enhancing returns and removing credit risk whilst maintaining ownership of the core assets required to fulfil the contract. 

These structures can often result in the service or solution provider recognising revenue on the delivered capital and service element of the contract and, if combined with our administration of the revenue collection and distribution functions, can prove to be an attractive proposition to the end user. 

Our Receivables finance offer keeps the service or solution provider in control of their core activities and responsibilities, but most importantly, the relationship between the service or solution provider and the end user customer is left intact.