• Asset Finance: PC's, Machinery, Furnishings, Medical & Electronic Equipment, Vehicles
  
  
• Property Finance: Mortgages & Bridging Loans for Hotels, Pubs, Restaurants, Nursing Homes, Guest Houses, Retail Premises
  
  
• Factoring: Trade Finance, Export Finance, Invoice Discounting
  
  
• Insurance: Life Assurance, Key Man Insurance, Long Term Illness Cover, Personal & Product Liability
  
  
• Venture Capital
  
  
• F.A.Q's Our most Frequently Asked Questions.

MHJ Business Finance.
Malvern Offices
Worcestershire

Tel: 0117 2307723
Mobile: 0772 0072207
E.mail: info@mhjfinance.co.uk

Consumer Credit Licence No. 488590.

Finance Lease .
All the benefits without ownership.

Finance leases give you immediate use of equipment for a small capital outlay. You simply choose the asset you need and lease it from us at payments to suit your cash flow.
We take legal ownership of the asset and rent it to you, allowing you to preserve your capital resources. Any capital allowances we can claim are passed on to you, you can offset your rentals against taxable profits and you can also reclaim the VAT on your monthly payments.

Payments are structured to meet your needs and you won't always have to make an initial lump sum payment. You can extend the lease at the end of the rental period by paying an annual peppercorn rent.
This type of lease works well for assets with a low to medium monetary value, that depreciate quickly and have a short to medium working life, for example a computer.

The benefits:

• Capital efficient - helps preserve capital resources and reduce your working capital requirement
  
• Cost-effective - we claim the Writing Down Allowances and pass them on you in the form of lower rentals
  
• Flexible - payments can be structured to the pattern of your cash flow
• Problem free - at the end of the lease you can continue renting the equipment by paying annual Peppercorn rentals.
  

We can finance equipment for almost all types of business, voluntary or public sector organisation: -

• Sole traders
  
• Partnerships
  
• Limited companies
  
• PLCs
  
• Local authorities
  
• NHS trusts
  
• Charities
• Rural businesses such as farms, smallholdings, garden centres, sports clubs, golf courses, caravan sites and rural diversification projects

Our only requirement is that you have been running profitably for more than 3 years. Equipment financed must be readily identifiable, recoverable and re saleable and must have a direct bearing on the running and profitability.
Don't forget that even in the event of us not being able to offer an asset finance or leasing solution, we may still be able to help, by offering a business loan.

Finance Lease
With any lease contract the finance company takes full ownership of the asset and rents the goods to you over a predetermined period.

The finance company can claim the writing down allowances and convey this benefit to you by reducing the rentals.

It also worth noting that the purchase price that is being used to calculate the rental is the purchase price net of VAT. Thus, if you are looking to acquire a VAT qualifying car, if leased the rental is calculated on the net price of the car and not the gross price if funded by Hire Purchase.

Generally, with a finance lease, you will source the supplier, and having paid the documentation fee and an initial payment of a multiple of rentals, substantially all of the remaining cost of the asset is spread over the agreed primary period.

The rentals attract VAT that can be recovered subject to eligibility. As the finance company is the owner of the asset, you will not need to pay the purchase VAT at inception.

As with Hire Purchase, you can include a balloon rental to reduce the value of the primary rentals.

At the end of the agreement you may have the option to enter into the secondary period. As you have generally covered the entire capital cost of the asset and hire charges (interest) in the primary period, should you wish to continue to use the asset, a secondary or peppercorn rental is charged. This rental typically approximates to 3% of the original cost and is a one off annual payment.

As you are not the owner of the asset, you cannot sell the asset during the rental period. However, as you are generally covering the total cost and hire charges within the primary period, you will be entitled to a share of the sale proceeds should the leasing company allow you to sell on their behalf. Your share of the sale proceeds is usually agreed at inception and is typically 95-99%.