asset finance that fits - jcb finance - jcb, plant and ... finance... · asset finance tailored to...

ASSET FINANCE THAT FITS YOUR BUSINESS

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ASSET FINANCE TAILORED TO YOUR NEEDS 5

THE BENEFITS FOR YOUR BUSINESS 7

THE ADVANTAGES OF HIRE PURCHASE 8

THE ADVANTAGES OF AN OPERATING LEASE 10

MAKING THE RIGHT CHOICE 11

WHY CHOOSE JCB FINANCE? 12

JCB FINANCE GOES FURTHER 15

TALK TO US 18

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CONTENTS

Finance restricted to UK business users and is subject to acceptance by JCB Finance Ltd. All information featured in this guide is for illustration only. All statements concerning taxation are based on our best understanding of current legislation. Levels and bases of taxation can change at any time. The contents of this guide do not constitute legal, tax, financial planning or any other advice. You should always discuss your choice of finance product with your accountant.

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Investment in plant, machinery or vehicles is key to maintaining and developing a successful business. But what’s the best way to fund such an investment?

Considering the many options available; cash, Hire Purchase or leasing, fixed or variable interest rates, it can be a challenge to know which will be of greatest relevance and benefit to your business. JCB Finance is here to help.

With over 40 years experience in providing asset finance for customers in the construction and industrial sectors, we can offer you flexible solutions that meet your requirements in a cost effective and tax efficient manner.

ASSET FINANCE TAILORED TO YOUR NEEDS

WE UNDERSTAND THE

POWER OF ASSET FINANCE

FOR YOUR BUSINESS

JCB FINANCE

JCB FINANCE

“ We pride ourselves on excellent service and understand how important it is that our customers receive the highest standard of machines. We’ve been working with JCB Finance for over 30 years and finance all our JCB machines with them. We wouldn’t have been able to afford the machines if it hadn’t been for the flexible approach they offered as the funding for the deposits would have been too much. JCB Finance enabled us to make the purchases to develop the business, without affecting cash flow too much and with JCB FlexiLease, we can even benefit from the residual profits at the end of the term.”

STEVE NORMAN, DIRECTOR,

STENOR ENVIRONMENTAL SERVICES LIMITED

THE BENEFITS FOR YOUR BUSINESS

It’s advisable for any business to hold cash reserves against potential dips in activity or income but this doesn’t have to delay or prevent investment in vital assets.

Asset finance enables you to secure the resources you need while protecting working capital, spreading the cost of investment and helping reduce your tax bill.

Asset finance also opens up additional credit lines that are independent from your bank is less likely to require additional security compared with a bank loan.

A bank may call in an overdraft at any time, but with our asset finance options you are protected by the security of a fixed term contract. In addition, by leaving your cash in a deposit account it will be earning interest and thus increasing your financial buffer.

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ASSET FINANCE ENABLES YOU TO SECURE

THE RESOURCES YOU NEED WHILE

PROTECTING WORKING CAPITAL

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THE ADVANTAGES OF HIRE PURCHASE

Hire Purchase (HP) is a popular form of funding because it allows you to spread the cost of purchase and the asset starts paying for itself through the income or savings it generates for the business.

However, just as with paying cash, the asset is retained on the balance sheet, claiming annual writing down allowances in the normal way. In addition, the interest charges are fully tax-deductible. Other key benefits of HP are:

Interest rates can be agreed and fixed at time of documentation (we also offer Variable Rate HP which is a popular choice when rates are falling)

Fixed repayments of capital and interest allow for accurate budgeting

Hedge against inflation and interest rate rises

Repayments can be reduced with the inclusion of a balloon payment

VAT is fully reclaimable

Tax writing down allowances available including the Annual Investment Allowance

Interest charges are tax allowable

The machine is yours after the last payment

HP contracts can be linked to dealer service, repair and maintenance agreements

“ We’ve worked with JCB Finance since we started the company back in 2007. It offers flexible finance options including, most importantly, the opportunity to fund used equipment – something that not a lot of lenders do. Investing in later models which are in good condition enables us to avoid the depreciation process, saving us money which we can re-invest to expand the business.”

MALCOLM BOWERS, DIRECTOR,

LIFTERZ LIMITED

For further advantages of dealing with JCB Finance, see page 15.

JCB FINANCE


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JCB FINANCE

THE ADVANTAGES OF AN OPERATING LEASE

MAKING THE RIGHT CHOICE

Leasing differs from HP in that ownership remains with the leasing company, which in turn claims the capital allowances and reflects this in the instalments.

With an Operating Lease, the residual value risk is borne by JCB Finance and this amount remains unpaid by the customer so the instalments are reduced. We sell the asset at the end of the agreement in order to recover this unpaid amount. This transfer of risk (of the residual value) can help deliver significant improvements on a business’ gearing or other key accounting ratios because the asset can be treated as off-balance sheet.

Instalments are 100% allowable against taxable profits so businesses that change their machines regularly can obtain faster tax relief. Other key benefits are:

Low capital outlay

Spreads the impact of VAT, which is collected on each instalment as it falls due

Low fixed instalments

Tax efficient

Preserves working capital

Easily combined with dealer service, repair and maintenance contracts

The best asset finance solution for you will depend on your circumstances and aspirations for your business.

The most fundamental question is whether you want to own the asset or simply operate it, but there are other factors to consider, for example, which of the following would you want?

The asset off-balance sheet

A fixed term agreement

Fixed or variable rate interest

The option of being able to extend the term

Payments structured to reflect your cash flow projections

To be able to make lump sum payments

Our relationship managers will explain the merits of each of the options available and explain the tax and VAT treatments that apply to the various products.

To talk to one of our finance specialists about your particular requirements call us on 0800 150650 or visit www.jcb-finance.com to find details of your local relationship manager.

Please note: JCB Finance is not a tax or financial advisor so it is recommended that you seek professional advice before taking any action.

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For further advantages of dealing with JCB Finance, see page 15.

JCB FINANCE

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WHY CHOOSE JCB FINANCE?

We’ve been providing asset finance for businesses in the construction, agricultural and industrial sectors since 1970 so we understand the kind of challenges you may face.

That’s why our range of finance options is designed to help spread costs and, depending on your circumstances, can also provide the flexibility to cope with unpredictable events – such as bad weather and price fluctuations.

We are a ‘people’s business’, with a nationwide team of relationship managers who combine extensive experience with a genuine interest in helping to meet your particular requirements.

We also have a direct sales team based at our UK headquarters. Together, our long serving team get to know their customers well and are there to offer support and a friendly personal service.

As an organisation, we put real emphasis on the value of hard work, honesty and enthusiasm. Our aim is to always focus on meeting the needs of our customers and to treat them fairly.

YOU CAN READ MORE ABOUT HOW OUR

SERVICE REFLECTS THESE COMMITMENTS AT

WWW.JCB-FINANCE.COM


JCB FINANCE HEADQUARTERS,

ROCESTER, STAFFORDSHIRE


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JCB FINANCE

“ We’ve been recycling hardcore material for about 12 years and as soon as we saw the washing plant in action we could see the value it added so we made arrangements to proceed with the purchase. The facility is tailored to our needs and gives us scope to manage our money – we can pay off lump sums to reduce the length of the term. Investment in machinery is vital to stay on top and ensure customers won’t be burdened with equipment which breaks down.”

CHRIS BALLS, PARTNER,

J C BALLS & SONS

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We continually work to develop financial solutions that match the requirements of our customers, always making sure that they follow best practice, are appropriate and easy to understand.

JCB FLEXILEASE: A NEW TYPE OF OPERATING LEASE

JCB FlexiLease offers all the features and benefits of an ordinary Operating Lease, with one key difference: any profit from disposal of the asset at the end of the lease is kept by you, and any loss made on disposal is met by JCB Finance. This is a win-win situation for you – the only thing you have to do is act as the agent of JCB Finance in selling the machine within 30 days of the end of the lease term. The machine must always be offered first to the original supplying dealer, but after that, you’re free to seek other potential buyers. Terms and conditions apply. This facility is limited to JCB machinery and certain other qualifying machines.

HP PLUS – TAKE A BREAK: BREATHING SPACE IF YOU NEED IT

Business operations can face unexpected challenges, and the knock on effects can put finances under pressure. Our HP Plus with ‘Take a Break’ option counters this by allowing you to take up to 6 months unscheduled payment holidays during a maximum 5-year agreement (a maximum of 2 consecutive months in 1 year). If you take a payment holiday, we will simply extend the period of the agreement, calculating the cost of the holiday using the original interest rate. Terms and conditions apply.

JCB FINANCE GOES FURTHER

JCB FINANCE

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RETURN TO INVOICE GAP INSURANCE: DON’T LET A WRITE-OFF DAMAGE YOUR BUSINESS

JCB Finance Return to Invoice Advanced GAP Insurance (RTIA) for plant, equipment, cars, commercial vehicles and agricultural machinery gives you the benefit of combining both return to invoice and GAP policies into one product. The JCB Finance RTIA policy provides cover for the financial shortfall between the vehicle insurance settlement and the greatest of either the amount you originally paid for the vehicle or the balance outstanding required to settle your finance agreement.

FINANCE FOR NON-JCB BUSINESS: THE CHOICE IS YOURS

Our finance options are not restricted to JCB equipment. They are also available for other new non-competitive machinery and all used machinery, cars, 4x4s, commercial vehicles, tractors, harvesters, cultivation equipment, balers, trailers, static plant, dumpers, access equipment and much, much more.

A NOTE ABOUT SECURITY

JCB Finance is committed to responsible lending. We will look at the credit history and growth prospects of your business, to be satisfied that the repayments can be met. Security is mainly taken on the asset concerned, although personal guarantees may be required if you are borrowing a large proportion of the asset’s cost and/or your balance sheet is developing/growing.


“ Customers renting machines want the best they can get and the structured finance from JCB Finance enables us to invest in the right equipment to meet customer needs without a steep deposit. There’s also potential for us to profit on completion of the JCB FlexiLease, all helping towards the growth of the business.”

NOEL SMITH, DIRECTOR,

ORBITAL EQUIPMENT LIMITED

OUR FINANCE OPTIONS ARE NOT RESTRICTED TO

JCB EQUIPMENT. THEY ARE ALSO AVAILABLE FOR

OTHER NEW NON-COMPETITIVE MACHINERY


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The information provided here is just an overview of how JCB Finance can help your business develop. Our finance specialists can give you a far more detailed explanation of all the available finance solutions and work with you to identify which might be most appropriate for your business.

JCB Finance Ltd is authorised and regulated by the Financial Conduct Authority.

For Insurance Mediation, JCB Finance Ltd is an appointed representative of The Royal Bank of Scotland plc, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

JCB Finance Ltd is registered in England number: 972265. Registered office: The Mill, High Street, Rocester, Staffs, ST14 5JW.

Visit our website www.jcb-finance.com Follow us on twitter www.twitter.com/jcbfinance

CALL US ON 0800 150650

JCB FINANCE

JCB Finance The Mill, High Street Rocester, Staffordshire ST14 5JW

T 01889 594155 F 01889 594141 E [email protected] twitter.com/jcbfinance www.jcb-finance.com

asset finance that fits - jcb finance - jcb, plant and ... finance... · asset finance tailored to...

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