Fixing rates at the start of refurbishment projects
In the febrile climate of rising interest rates, clients want the certainty of the lowest fixed rate they can get on equipment and refurbishment projects. With asset finance interest rates increasing virtually every week since the end of September and with equipment on longer lead times from order to delivery, figures quoted today will have to change before your equipment is delivered in 8 weeks’ time and a traditional asset finance agreement can start.
To address this problem, Lease UK has been working with its panel of funders to provide a means of fixing interest rates at an earlier point. Several of our funders now offer facilities which will enable them to release deposit or stage payments to supplier(s) on larger deals. Under these deals, clients authorise the funder to release an initial deposit payment to a supplier. This then triggers the partial activation of the finance agreement which fixes the rate. The client then requests the funder to release subsequent stage payments as requested by the supplier. The funder in return expects the client to start making their full monthly repayments from when this partial activation takes place.
This facility is reserved for deals over £25,000 in total and this could be for one piece of equipment or for several all within that one agreement. So it works well for practice refurbishment projects.
If this innovative product is of interest or if you have any practice finance requirements please visit us at stand P64 at the London Vet Show and we will explain more.