Leasing and hire purchase

Leasing, Hire Purchase and Operating Lease

Containerhouselda.com have teamed up with Leasing Programmes Ltd to offer a range of Hire Purchase, Standard Lease and Operating Lease options for shipping container purchases. These are available only for registered Limited companies and Public sector bodies (unfortunately these are not available to individuals, sole traders or partnerships). Finance is available on any purchase above $2000 + VAT.

Please note that the information on this page is intended for information purposes only and is not to be considered as an offer. All lending is undertaken subject to status and our partners may at times request further financial information. We also reserve the right to refuse finance options at any time.

What options are available?

Hire Purchase

After all the payments have been made, the business customer becomes the owner of the container. This ownership transfers either automatically or on payment of an option to purchase fee. For tax purposes, from the beginning of the agreement the business customer is treated as the owner of the equipment and so can claim capital allowances. Capital allowances can be a significant tax incentive for businesses to invest in new equipment and machinery or to upgrade information systems. Under a hire purchase agreement, the business customer is responsible for any maintenance.

Standard Lease

This finance lease or ‘full payout lease’ is closest to the hire purchase alternative. The leasing company recovers the full cost of the equipment, plus charges, over the period of the lease. Although the customer may not own the equipment, they have most of the ‘risks and rewards’ associated with ownership. They are responsible for maintaining and insuring the asset and must show the leased asset on their balance sheet as a capital item. Ownership can be passed on to the customer, if required for one additional month’s rental.

Operating Lease

Note: this option is only available in the Public Sector e.g. Schools, Housing Associations, Local Authorities.

If a business needs a piece of equipment then operating leasing may be the answer. The leasing company will lease the equipment, expecting to sell it second hand at the end of the lease, or to lease it again to someone else. It will, therefore, not need to recover the full cost of the equipment through the lease rentals. This type of leasing is common within the public sector. The lease period will usually be for three years, although it may be longer if required, but is always less than the working life of the equipment. Assets financed under operating leases are not shown as assets on the balance sheet. Instead, the entire operating lease cost is treated as a cost in the profit and loss account. At the end of the operating lease the customer can return the goods or re-lease for a further fixed or flexible period.

How does it work?

• You confirm the finance required (presumably to meet your quote) and what length of time you want repayments to last (typically 3 or 5 years)
• Our partners may speak to you directly (depending on the credit risk involved) and may at this stage request further financial information, e.g. Financial statements, management information, Bank Statements, Personal Information)
• We will revert with a quote / offer for finance subject to status
• The finance agreement will be sent directly from Leasing Programs Ltd to yourselves. Once all agreements are signed and returned, they will pay our invoice on your behalf, and you begin monthly payments to the finance company
• Once installation has taken place payment will typically be made in 2-3 working days.

For more information and prices please contact us.