OBTAINING finance in the equestrian industry can be more complex than other sectors as cash-flow can fluctuate depending on your business type and any finance agreement must be structured to allow for this.

Lenders also have their own limitations on the financial products they offer and the age and type of the asset/equipment you are looking to finance.

Loanitt is the solution – our experienced finance advisors will find the best solution. We can finance everything from horse boxes, trucks, telescopic handler, tractors, horse walkers, rotavators et cetera.

There are many different options when wanting to finance equipment or machinery which include:

Hire purchase

Hire purchase allows you to acquire an asset through regular repayments without affecting your working capital as you are not paying a large, upfront sum. You own the asset once you make the last payment.

For tax purposes, you can be considered the owner of the asset and can normally claim the allowances and can offset the hire purchase interest and charges against pre-tax profits. If VAT registered, you can claim the VAT for the price of the asset in your next tax return, which is good for cash flow et cetera.

Leasing

The finance company buys the asset on your behalf and leases it to you, the customer, for an agreed term at a set rental. You make monthly payments for what is known as the ‘primary rental period’ until you cover the cost of the equipment, plus interest. With a lease, you can reclaim the VAT over the full period of the agreement while working capital is not tied up in an asset. You own the asset once you make the last payment. VAT can be claimed at every VAT return while you are leasing the asset (VAT is claimable on the interest unlike HP).

Re-finance

Refinancing used assets is a way to unlock cash to invest in your business. It is an option for businesses that have valuable assets, like vehicles or equipment, but not a lot of cash free for improvements or new investments. Refinancing an asset will release capital into your business. Customer “sells” the asset to the lender and they lease it back to customer, same rules apply as per HP or lease. Once the principal, fees and interest have been repaid, the asset returns free and clear to you.

For a quick and easy finance, visit www.loanitt.ie, call us on 056-7807008 or email commercial@loanitt.ie

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