The biggest danger is that you get your machinery leasing rates and then start speaking to your nominated supplier only to find a leasing company cannot set the supplier up. “You are lending the money to me, not the supplier” is the answer we get. Yes, that is correct, but leasing companies still look to check the supplier out to ensure they will still be around in business for the next five years. Their concern – and our concern – will be can they deliver the warranty, maintenance and support if needed.
If you are a sole trader or partnership and the machinery lease value is under £25,000, including VAT and interest, then the transaction is regulated by the Financial Conduct Authority (FCA). The FCA is there to protect you, the customer. If your supplier does not have a valid FCA licence the leasing company will not do the deal. If you come to us directly to do the leasing, then we are legally allowed to offer you a leasing option even if the supplier does not have an FCA licence.
The biggest danger to using this finance calculator is that we give you an unrealistic guide to the lease repayment. More often than not, this is where you might put in the VAT inclusive figure as opposed to the net exclusive VAT capital value. Also, for some great bits of machinery equipment to a good quality client, we can often negotiate better machinery leasing rates on your behalf.