Fruehauf Finance offers an extensive portfolio of finance products by
direct arrangement through major funders throughout the UK that can
be tailored to suit your individual cash flow requirements.

For plant, commercial vehicles, trailers, cars, office equipment, vans and all capital purchases: think Fruehauf Finance.

This leaflet outlines the different plans available and summarises their principal features and benefits.

For further information and a quotation call: 0845 6349415

Hire Purchase
This is a simple but highly flexible finance option, which allows you to spread payments over a specific period. The interest rate is normally fixed at the beginning of the agreement so you enjoy protection against interest rate rises during the period of the agreement. You can claim tax capital allowances on the cost price of the asset and the interest charges are also allowable against tax. You pay and reclaim the VAT on the cost of the
asset at the start of the agreement so the finance payments are not subject to VAT. At the end of the agreement you have the option to own the asset on payment of a small option to purchase fee.

Finance Lease
Here Fruehauf Finance pays and reclaims the VAT on the purchase price, meaning that you just pay VAT on the monthly rentals, which are normally fully allowable against taxable profits. With this type of
agreement you also share in the eventual sale proceeds. At the end of the agreement you can either sell the asset to a third party as agent of Fruehauf Finance, and retain most of the sale proceeds (commonly between 95% and 100%). Alternatively, you may continue to use the asset by entering into a secondary rental period at a nominal rental charge. You still retain the option to sell the asset later and keep substantially all the sale proceeds.

Operating Lease
This option offers a trouble free way to run business assets. In this case Fruehauf Finance takes account of the anticipated residual value of the goods at the end of the lease period to reduce the monthly rentals. As with Finance Leases, the VAT is only payable on the monthly rentals. At the end of the lease you simply hand back the asset to Fruehauf Finance and, as long as the condition of the asset meets the pre-agreed return conditions, there will be nothing more to pay. The asset is normally off-balance sheet, which helps your company’s gearing and return on capital ratios, and you are relieved of exposure to any residual value risk or disposal costs.

The financing of capital assets avoids the sudden drain on cash resources resulting from the need to add or replace high cost business assets. This helps companies to conserve working capital and to budget for the cash needed to operate their business more easily. The UK has one of the most sophisticated financial service sectors in the world, providing an enormous array of schemes to suit all needs. Fruehauf Finance will be pleased to help you find the best finance package to meet the individual taxation and cash flow
requirements of your business.

Call 0845 6349415 to discuss any aspect of your company’s
asset financing needs or to obtain an individually tailored quotation.