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Our ﬁnance solutions

A complete finance solution for our Brokers, Vendors and Intermediary Partners.

Asset Finance and loans from sector experts

We have been working in partnership with business finance brokers for nearly 40 years to deliver tailor-made asset finance solutions to UK SMEs.

We are committed to helping our Brokers and their clients by providing efficient and effective finance options to support business investment and growth.

We make fast, firm lending decisions, with dedicated Broker Development Managers responding quickly and efficiently to the needs of our Brokers and their clients.

We work in a number of specialist sectors including:

• Agriculture

• Manufacturing

• Professions

• Renewable Energy

• Sports

• Transport and Logistics

• Waste and Recycling

Hire Purchase

Hire Purchase is a type of asset finance that allows firms or individuals to possess and control an asset during an agreed term, while paying rent or instalments covering depreciation of the asset, and interest to cover capital cost. At the end of the term, they have the option to purchase the asset outright.

It lets businesses spread the cost of their 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.

Products and services are subject to eligibility, status, terms and conditions and availability. All lending is subject to status and our lending criteria. The right to decline any application is reserved.

Beneﬁts of Hire Purchase

• More time to repay - Spreading the cost over the life of the asset means the initial outlay can be lower, allowing the business to budget effectively with manageable fixed monthly payments

• Seasonality - We understand that seasonal ﬂuctuations can have an impact on cash ﬂow, so we can tailor monthly repayments to take this into account. For example: an imbalance in the timing of sales revenue for a given class of manufactured product

• Keep control - Hire Purchase allows the business to maintain control as they have full use of the asset throughout the repayment period and can normally claim capital allowances. Capital allowances are a type of tax relief that businesses can claim when they spend money on long-term assets for use in the business. They let them deduct some or all of the value of the asset from their taxable profit

• Tax efﬁcient - Financing asset purchases can be more tax efficient than standard-term loans due to lease payments being booked as expenses. Although asset depreciation also provides tax benefits, the useable lifetime of the asset will vary depending on the asset and on local regulation

• Reclaim VAT (if they are VAT registered). For more information on VAT registration, please visit gov.uk/vat-registration/overview

Finance is secured against the asset and/or equipment. If the business is unable to keep up with payments we may repossess the asset and/or equipment.

Finance lease

Our Finance Lease arrangements let a business use the equipment they need without having to buy it outright. It also offers business customers use of an asset of newer, higher specification than they could otherwise purchase.

They pay us rent for the full use of it. The rental period is ﬂexible and can be tailored to their needs and cash ﬂow. During this period, they will pay us the full cost of the asset, including interest.

Then, when they reach the end of the primary lease term, they 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 outlay - Quick access to the asset they need. The cost of the asset is paid by monthly instalments rather than a large upfront investment

• Flexibility - Rental payments and lease periods can be designed to match their cash ﬂow

• Cash back - Receive most of the income from selling the asset if they choose to do so at the end of the lease

• Tax advantages - VAT is payable on the rentals (if they are VAT registered), not the purchase price and may be offset against taxable profit. If the company is not VAT registered, they can choose to spread the VAT costs across the term of the lease by incorporating it into their monthly rental

For more information on VAT registration, please visit gov.uk/vat-registration/overview

Finance is secured against the asset and/or equipment. If the business is unable to keep up with payments we may repossess the asset and/or equipment.

Reﬁnance / Capital release

Refinance is a process of borrowing money against the value of your existing assets, such as equipment, machinery, vehicles, or property. Its a quick and ﬂexible way to raise funds without selling your assets or affecting your cash ﬂow.

Refinancing, including Sale and Lease Back and Sale and HP Back, 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 the business. Repayments are calculated in line with the income stream that will be generated by the asset and at the end of the refinance term, they own the asset.

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

Beneﬁts of Reﬁnance / Capital release

• Efﬁciency - Asset refinancing offers a straightforward and quick way to secure additional working capital for business requirements. They can continue to use the asset offered as security against the loan

• Spread the cost further - We can take over the finance agreement they have with another provider and extend the term, which is fixed along with the charges so they will not incur any surprises during the lifetime of the loan

• Choice - Give the business a cash injection or use the money to buy other assets that may not be accessible through Hire Purchase or Leasing agreements

• Make fast decisions - Releasing capital can help the business to make faster decisions when negotiating business contracts. They can use the released funds to invest into new people, assets, or workplaces to expand the business

Finance is secured against the asset and/or equipment. If the business is unable to keep up with payments we may repossess the asset and/or equipment.

Refinancing could potentially incur higher costs and may involve longer terms compared to your current agreements.

Loans for Professionals

A Loan provides businesses with access to funds to support their growth and development; we offer:

• Business loans

• Personal loans

• Consolidation loans

• Tax loans (business and personal)

• VAT loans

Our Loans can be used for almost any purpose, including:

• Practice acquisitions

• Refurbishments

• Equipment purchase (up to a seven-year term)

Our loan facilities are:

• Regulated or unregulated

• Used for business and / or personal use

• Adapted to range from three months to five years

Beneﬁts of Loans

• Access to capital: Loans can provide essential funds needed to help a business achieve its objectives, without depleting its cash reserves

• Business growth: With additional funds, a business can fund investment to drive growth and increase profitability

• Manage cash ﬂow: Spread the cost of large expenses into manageable fixed monthly payments

If a business misses or expects to miss a repayment under its Loan Agreement, they will need to get in touch with us straight away to discuss it with our team.

Flexibility: Repayment terms can be tailored to suit individual circumstances

The risks of missing a repayment under a Loan Agreement are that we may:

• Cancel our agreement with the business and require the business to repay the full amount of the Loan immediately

• Disclose information about the business’ Loan to the credit reference agencies

• Set off any amounts a business owes us under the agreement against any funds the business holds with us in other accounts

• Take enforcement action against the business to recover any amounts still owed if necessary

• Restrict access to any other credit facilities the business has with us and require the business to immediately repay those facilities

Receivables Finance

We can purchase the asset(s) and future contractual payments of an existing agreement, including:

Energy services contracts

• Power purchase agreements

• Managed service agreements

Beneﬁts of Receivables Finance

These types of contracts require significant upfront investment from the service provider, but by selling the contract the service provider immediately:

• Recoups the initial outlay

• Accesses the contract’s profitability early to invest in new projects

Types of contracts we purchase

In addition to more complex contracts, we will also consider purchasing more traditional finance contracts, including:

• Hire Purchase

• Finance Lease

• Loan

Our standard terms are up to seven years with a contract value of at least £500,000, but we will consider longer and more complex agreements on a case-by-case basis.

Vendor Finance

Vendor Finance provides equipment suppliers with access to ﬂexible finance solutions, enabling you to offer point-of-sale finance to your customers.

This allows your customers to get the equipment they need when they need it. As a result, the finance process is simpler, and the sales process is accelerated.

By reducing cash ﬂow constraints, Vendor Finance helps your customers access the right solution for their business. It also makes it easier for you to retain your customers and improves their liquidity.

• Extends the purchase options available to the end customer, which could lead to improved sales conversion and customer retention

• Allows your customer to spread payments over an agreed period, to best suit their budget and needs

• At the end of the term, your customer can choose to purchase their equipment, upgrade to new equipment, or continue financing at substantial savings

Beneﬁts of vendor ﬁnance

We review your business to understand how you sell and the channels you use, including partner distribution.

We offer a seamless approach for both you and your customer for processing finance applications.

The end user agreement remains with us.

We develop a tailored finance product that integrates with your sales, finance and commercial departments.Providing your customers with the option of point-of-sale finance for business-critical assets.

Block Discounting

Block Discounting offers a secure way to release capital against your existing customer agreements.

This solution is designed for existing lenders with outstanding live agreements, as well as those aiming to build their own lending book.

Block Discounting is a quick, secure and ﬂexible way to release cash tied up in agreements before they are fully paid, and can be raised against Loan, Lease, and Hire Purchase agreements.

Beneﬁts of Block Discounting:

Improved cash ﬂow

Fast and secure

Grow your business

How it works

You maintain control of the relationship with your customer throughout the term of the agreement – we remain undisclosed to your customer.

Funds can be released as and when you need them, and can be used for a variety of purposes, including cash ﬂow planning and business investment.

You sell us a batch of customer agreements at a discounted price

1 3 2 4

We advance a percentage of the capital owed to you, providing you with immediate cash flow

You continue to collect the payments of the customer agreements you have sold to us

You pay us fixed monthly instalments, based on the amount of the initial advance, plus interest

For more information about our products and services scan the QR code below

or get in touch with your contact directly.

This information is intended for use by Brokers only and should not be shared with Broker customers or any other third parties.

Close Brothers Broker Solutions is a trading style of Close Brothers Limited. Close Brothers Limited is registered in England and Wales (Company Number 00195626) and its registered office is 10 Crown Place, London, EC2A 4FT.

Close Brothers Leasing is a trading style of Close Leasing Limited which is a subsidiary of Close Brothers Limited. Close Leasing Limited is registered in England and Wales (Company Number 06377532) and its registered office is Olympic Court, Third Avenue, Trafford Park Village, Manchester, M17 1AP