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Hire/Lease purchase Hire purchase - sometimes known as lease purchase - is a simple repayment facility, where you eventually own the asset at the end of your agreement with Lombard. Assets you can finance with hire purchase |
Contract purchase Contract purchase fixes your monthly payments and offers you flexible terms. This type of finance gives you the opportunity to gain ownership of the asset at the end of the agreement. Assets you can finance with contract purchase |
Finance lease This flexible type of asset finance offers all the practical benefits of ownership, without the potential burdens. We own the assets but give you full use of them right away, at minimal up-front cost. Assets you can finance with finance lease |
Operating lease This option is well worth considering for specialised and higher value assets. We own the asset and take the risk of it losing value. Meanwhile, you get to use it for as long as you wish. Assets you can finance with operating lease |
Contract hire Car or van contract hire could prove ideal for your business. You can focus on core activities, by fixing your costs and avoiding the burden and risk of owning your own vehicles. Assets you can finance with contract hire |
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| Will we own the asset? | Yes | Possible | No | Possible ** | No |
| Are rentals tax deductible? | Interest only | Interest only | Yes | Yes | Yes |
| Does this route preserve capital? | Yes | Yes | Yes | Yes | Yes |
| Can I have fixed or variable rate? | Yes | No | Yes | Possible | No |
| Can we claim capital allowances? | Yes | Yes *** | No | No | No |
| Will the rental payment figure be linked to future value of asset? | No | Yes | No | Yes | Yes |
| Can VAT on payments be reclaimed? * | Not applicable | Not applicable | Yes | Yes | Yes |
| Can VAT on cost of asset be reclaimed? | Yes | Yes | No | No | No |
| Will service and maintenance be included? | No | No | Possible | Possible | Yes |
- * The amount of VAT that can be reclaimed is influenced by any non business use. Please seek advice from your auditor
- ** 'Planned rental' product only
- *** The accounting treatment of your facility and your ability to claim allowances should be discussed with your auditors
