+44 (0) 1327 872 531

info@medialease.com

Medialease will listen to you and where possible will always tailor your specific requirements to your new finance agreement.

Because we understand how your business works, Medialease can guide you through the various factors affecting a finance agreement and your needs, whether it be for seasonal payments, lower deposit levels, shorter or longer agreement length, or fixed / variable rate funding and advise you on the financial and accounting implications of each, to equip you with all the necessary knowledge to make the right decision for your company.

How do I distinguish between the different forms of financing?

With reference to the different types of agreement you can enter, Medialease can offer facilities in various forms, as detailed below. Our service includes guidance on the ‘detail’ to each of the different forms available.

Lease Purchase (otherwise known as Hire Purchase)

A purchasing finance solution, where title to the assets funded pass to you upon successful completion of monthly payments over an agreed period (typically 36 months) plus a nominal option to purchase fee –
VAT is payable in full on the invoice value, at the commencement of the agreement. (In some cases the VAT can be deferred over a 1 – 3 month period)

Finance Lease (otherwise known as Lease Rental)

A rental finance solution, where following successful completion of monthly rentals (each rental being subject to VAT) over an agreed period you have the following options:

the equipment can be returned
ongoing use of the equipment can be secured, by continuing to lease the equipment via annual secondary payments
the equipment can be sold to a third party, where you will retain a pre-agreed percentage of the sale proceeds

Operating Lease

A rental finance solution where Medialease will underwrite a future value in the equipment, allowing the rental payments to be calculated on a reduced amount, thus offering you a clear cash-flow advantage over Finance Lease. (Rentals are subject to VAT). The rentals are treated as a revenue expense and are charged directly to your profit and loss account. The asset does not appear on your balance sheet.

Re-Finance / Sale & Lease or HP back / Loan and Chattels Mortgage

In some cases companies may have unencumbered assets within their asset register. Where the assets retain a recognised value, they may be used to raise cash for asset purchases that may not have been suitable under standard financing arrangements, or perhaps to support an expansion programme within the business following successful new business opportunities won.

Please feel free to talk to us about, software finance, vendor/receivables finance, short term funding and invoice discounting / factoring. We have access to a number of advisors within the banking environment that will be able to assist your business.