The tools you need to perform and grow

Hire purchase (HP) is a great option for businesses that want to buy the assets they’ll need for long-term growth, now. It enables you to spread the cost over a longer period with fixed regular payments.

At Acorn, we offer tailored repayment periods to suit your cash flow. For example, you can choose to reduce your monthly payments by paying a larger deposit up front, known as a balloon payment.

Hire Purchase lets you stay in control of your finances, as you may be able to offset the interest charges against the profit. It also gives you peace of mind that you’ll own the items at the end of the given term. Sale & HP Back is also available to clients who have recently paid for equipment and wish to finance the cost afterwards. Some of the benefits of higher purchase include:

• Repayment terms tailored to suit your business cash flow

• You own the items at the end of agreed finance term

• More often a more tax efficient option than a lease rental agreement

• Assets acquired through HP will go on to the Balance Sheets of the business

• VAT is payable up front

Sale and Hire Purchase (HP) Back enables businesses to raise capital and improve cash flow by releasing cash equity from any assets that the business owns.

For example, after buying equipment for your business, you may suddenly need to raise additional capital. A Sale and HP Back facility would enable you to refinance the asset within 6 months of the invoice date, providing your business with a cash injection, without interrupting your use of the equipment. The facility is often used by businesses that are looking to expand their offerings.

With Sale and HP Back, your asset is purchased by a lender and then financed back to you at an agreed rate and period, using hire purchase. Once your repayments have been made, you still own the asset at the end. Some of the benefits of Sale and HP Back include:

• A quick way to improve your cash flow by refinancing a recently purchased asset

• Efficiency, as you continue to use your asset uninterrupted

• Being able to react to unexpected cash flow changes

A lease rental is an effective way for businesses to access the items they need in order to grow, without having to pay a large upfront cost.

Unlike Hire Purchase, with a lease rental, you don’t own the items automatically at the end of the agreement. You agree to a fixed term rental period for a particular asset, like a company car, for example. You make regular payments towards the asset for the length of the contract and at the end, you return the asset. In some cases, you may have the option to continue renting.

Approval rates are typically high for lease rental applications and they are usually approved quickly. At Acorn, we can provide a range of leasing options that include:

• Fixed monthly payments enabling you to budget accordingly to aid cash-flow

• Option to return item or continue lease at the end of your agreed term

• 1-to-1 personal service

• As little as 1 monthly repayment in advance

• VAT spread across the repayments

• Any lease rental agreement is classed as a cost to the business on the profit and loss.

Refinancing uses an existing asset as security against a new loan. The asset can be one that your business owns outright, or an item you’ve acquired through hire purchase.

Whether you’re looking to reduce your monthly outgoings, save money on a repayment, or pursue a new lending option, refinancing is a flexible way to improve your cash flow.

It’s an effective means of debt consolidation and can be a good way to improve loan terms, lower interest rates or arrange a more bespoke repayment plan. At Acorn, we work with a number of lenders. We’ll take the time to understand your motivation for refinancing and we’ll present you with a range of options that suit your needs.

• A novel way to raise capital for business projects.

• Assets can be refinanced and leveraged to provide capital within the business.

• We’ll work closely with you to establish how refinancing could best benefit you.