Asset finance for transport and logistics

Asset finance for transport and logistics

If you are looking at funding in the transport and logistics sector we can help you ease cash flow through hire purchase, leasing or asset refinancing.

The transport sector is a vital part of our economy – the link in the chain that so many other industries rely upon.

However, tighter margins, increased fuel costs and stringent European legislation are putting increasing pressure on many businesses in the industry. To overcome these constraints, and remain open to opportunities for growth, calls for careful planning and a sound financial strategy.

This is where Close Brothers Asset Finance can help. Years of experience in arranging finance for the haulage sector has given our specialist team in-depth industry knowledge. We work with you to find funding solutions that spread the cost of investment in new vehicles, or release working capital from your current fleet and equipment. By fully explaining all your options – which may include hire purchase, operating lease or refinance – we’ll help you identify the most appropriate route to acquire new assets or unlock the value of existing ones.

There’s no minimum entry level for our asset finance solutions and we can fund all types of assets up to £5 million+. 

Typical assets we finance include:

  • Buses and coaches (PSVs)
  • Cars
  • Tankers
  • Tippers
  • Trailers
  • Trucks (HGVs)
  • Vans (LCVs)

Finance products we offer for the transport and logistics industry

  • Hire Purchase
  • Refinancing
  • Finance Lease
  • Operating Lease

Hire Purchase - Spread the cost over time

Hire Purchase enables you to acquire an asset while paying for it in instalments over an agreed timescale – the term. At the end of the term, you have the option to purchase the asset outright.

Far more flexible than a conventional loan, Hire Purchase lets you spread the cost of your investment over the life of the asset, making it easier to budget. Hire Purchase is particularly suitable for acquiring vehicles, machinery, construction and commercial equipment with a resell value.

 

Benefits of Hire Purchase

  • More time to repaySpread the cost over the life of the asset
  • SeasonalityWe can structure repayments to take account of seasonal fluctuations in your cash flow
  • Keep controlYou are the owner of the asset for tax purposes and can normally claim capital allowances
  • Tax efficientYou can offset your hire purchase interest and charges against pre-tax profits
  • Reclaim VAT on the capital cost (there are special rules for cars) 

Refinancing - When you need a cash injection

Refinancing is a quick way to access the value of assets on your existing balance sheet and redeploy that value elsewhere within your business – for example, to fund a deposit on new equipment or unlock some working capital to ease cash flow.

Sale and HP Back is a form of refinance that can be used against most types of equipment, making it suitable for companies of all sizes, including sole traders. It works by us purchasing the asset and financing it back to you. Repayments are calculated in line with the income stream that will be generated by the asset and at the end of the refinance term, you own the asset.

This option applies whether you already own the asset or are using it under a finance deal with another provider.

 

Benefits of Refinancing

  • EfficiencyUninterrupted use of the asset
  • Spread the cost furtherWe can take over the finance agreement you have with another provider and extend the term
  • ChoiceGive your business a cash injection or use the money to buy other assets that may not be accessible through hire purchase or leasing agreements

Finance Lease - User benefits without the ties of ownership

Our Finance Lease arrangement lets you use the equipment you need without having to buy it outright. You pay us rent for the full use of it. The rental period (the primary lease term) is flexible and can be tailored to your usage needs and cash flow.

During this period, you will pay us the full cost of the asset, including interest.

Then, when you reach the end of the primary lease term you can choose to:

  • continue to use the asset by entering a secondary rental period
  • sell the asset and keep a portion of the income from the sale
  • return it to us

 

Benefits of Finance Lease

  • Low initial outlayQuick access to the asset you need without a heavy upfront investment
  • FlexibilityRental payments and lease periods can be designed to match your cash flow
  • Cash backReceive most of the income from selling the asset if you choose to do so at the end of the lease
  • Tax efficientRentals can usually be offset against pre-tax profits
  • Reduce costsReclaim VAT on rentals

Operating Lease - Keep your options open

Similar to a Finance Lease, an Operating Lease allows you to rent the asset from us while you need it. The key difference between the two is that an Operating Lease is only for part of the asset’s useful life.

This means you pay a reduced rental because the cost is based on the difference between the asset’s original purchase price and its residual value at the end of the agreement.

You get full use of the asset for as long as you need it, without the burden of responsibility of disposing of it or recouping its residual value.

 

Benefits of Operating Lease

  • Low initial outlay - Quick access to the asset you need without a heavy upfront investment
  • Freedom - Full use of the asset without having to buy it outright
  • Flexibility - Option to re-rent, purchase or return the asset at the end of the term
  • Pay less - Rental cost is reduced as it is based on a percentage of the original capital cost
  • Off balance sheet funding
  • Reduce costs - Reclaim VAT on rentals

London and South office

020 8339 4954

Wimbledon Bridge House
1 Hartfield Road
London
SW19 3RU

Midlands and North office

01283 742580

Suite B, First Floor,
The Maltsters,
Wetmore Road,
Burton On Trent,
Staffs DE14 1LS

Scotland office

01355 572370

2nd Floor, Orbital House,
3 Redwood Crescent,
East Kilbride
Glasgow G74 5PR

Close Brothers Fuel Card Scheme - reduce your monthly costs with lower fuel rates

UK Fuels

We have launched a fuel card scheme in partnership with UK Fuels, one of Europe’s leading independent fuel card management companies.

UK Fuels are offering our customers a unique opportunity to potentially reduce their monthly fuel expenditure by providing lower fuel rates based on the collective fuel usage of all our customers who are part of the scheme as opposed to fuel prices set on the amount of vehicles each individual company owns.

Key benefits:

  • Reduced monthly fuel expenditure
  • No cash bond is required upfront to join the fuel scheme in 70% of cases
  • Fuel card can be used across UK and Europe with over 20,000 filling stations
  • Online account management - including a smart phone app
  • No lock in periods
  • No set up fees
Close Brothers Asset Finance Fuel Card Scheme

Perfect for businesses with a mobile workforce, the fuel card scheme can help to keep your fleet on the move. They’re a safer alternative than cash for both companies and drivers, and can be more efficient than credit cards, providing detailed reporting on fuel spend and usage, allowing businesses to improve cost efficiencies.

John Fawcett, divisional MD of transport at Close Brothers Asset Finance said: “Fuel costs are a significant and rising cost for many businesses and can be complex and time consuming to manage. Most companies will have an existing fuel card provider but these tend only to provide savings based on the volume of usage across their own vehicles, as opposed to all vehicles from all customers in the scheme. We wanted to demonstrate Close Brothers Asset Finance’s ongoing support for SMEs by creating a value add service to make our customer’s largest monthly cost both cheaper and easier to manage.


Close Brothers Fuel Card Scheme - Apply today

 

  

 

 

 

 

To find out how we can help, please contact us today.