Golf Finance offer a range of services to meet the needs of each individual business:
- Finance Lease
- A Finance Lease is a simple and straightforward way of financing a fixed asset. Effectively, one company (the lessor/owner) buys the asset for the user (the hirer/lessee) and then rents it to them over an agreed period. With this finance option, VAT is payable on each lease payment instead of all at once upfront. Generally there is no need for additional security as the finance is usually secured against the equipment. At the end of the lease term, the business can choose to return the asset, extend the lease agreement, or sometimes purchase the asset.
- Operating Lease
- With an Operating Lease, the business does not repay the full value of the asset – they pay for either their usage of the asset, or for the duration that they use it. At the end of the rental period, the business will return the asset. Similar to a Finance Lease, VAT is spread among the payments.
- Contract Hire:
- This is similar in nature to an Operating Lease, but Contract Hire provides the option to add packages which cover the care and maintenance of the asset. The agreement is generally set up with an initial payment and then a fixed monthly cost over an agreed period, which removes any uncertainty regarding changing residual values.
- Hire Purchase:
- Hire Purchase can provide a flexible and cost effective option for a business purchasing equipment. Unlike a Finance Lease, VAT is required to be paid up front along with a deposit, and the payments are structured from there. This allows the business to own the asset outright at the end of the period, while supporting cash flow.
- A basic unsecured loan can support a range of business expenditure, providing fast capital to to boost working funds, but offers little flexibility and can be hard to obtain for certain projects.
- Sale and HP Back:
- This represents a straightforward way to finance an asset even though it has already been purchased outright. It is generally still possible to arrange finance on an asset within 90 days of the purchase date. The lease back option can be either a Finance Lease or a Hire Purchase agreement.