Asset Finance

Key Facts

Financing business assets does not have to be a strain on your resources. Whether you need to finance vehicle or capital equipment, we'll find a cost-effective and flexible asset finance solution. We'll also structure the package around your cash flow and tax requirements.

With Barclays Vehicle and Asset Finance, you can now purchase your new business equipment knowing that you can use the same purchase as its security.

Which assets do we finance?

  • Movable assets: Cars, trucks, buses, forklifts, capital equipment, plant equipment, IT Equipment, etc.
  • New and Used

Benefits of Asset Finance

  • Can acquire assets for future use at today's cost
  • Reduces pressure on working capital
  • Repayments structured to meet cash flows
  • Term finance
  • Early settlement options available
  • Balance sheet management
  • Tax efficient
  • Security structures
  • Basis of charging interest rates

Interest Rates

Barclays offers competitive interest rates pegged to each customers' risk profile. Interest calculations are based on reducing balance basis.

Tenor/Term/Structures

  • Barclays will consider terms ranging from 12 to 60 months
  • Payments can be structured to suit cash flow needs. - Monthly, Quarterly , Half-yearly, Annually
  • Seasonal or skip payments
  • Balloon payments
  • No legal fees incurred

End of Term - What are the end of the term options?

The finance agreement and structure of the transaction will determine what the end of term conditions are.

  • FlexiBuy
    • Ownership automatically passes on full and final payment
  • FlexiLease
    • Ownership may pass on payment of last rental and a nominal amount

Flexi Buy

What is Flexi Buy?

Flexi Buy is the unique name given by Barclays in Africa to its Instalment Sale Agreement

How does Flexi Buy work?

The customer repays the capital plus interest charges over the agreed finance term Ownership of the asset automatically passes to the customer upon final payment (Unlike Hire Purchase, there is no option fee to acquire ownership)

Flexi Buy - Instalment Sale Agreement

  • Income Tax Treatment
    • The Buyer deducts the interest cost as well as any capital allowances (Wear & Tear), as if he owned the asset outright
  • VAT Treatment
    • The Seller charges the full VAT on the cost price, including interest
    • The Buyer is able to claim the full VAT input
  • Accounting Treatment
    • The asset is recorded as an "on-balance sheet" item
    • The outstanding debt is shown as a liability
    • The Buyer deducts depreciation and the interest cost

Flexi Lease

Flexi Lease allows you to structure payment schedules to your advantage, financing your business most efficiently. Rentals are tax deductible.

With Flexi Lease you have:

  • Flexibility and structuring of rentals, interest rates and term
  • The choice of monthly, quarterly, or annual rentals structured to suit your cash flow.
  • The freedom to make your capital work for you.
  • A financing option that eliminates the need to pay VAT up-front; you only pay VAT on each rental when it is due.
  • The flexibility to structure rentals with a final balloon payment to match your cash flow.
  • Flexibility that allows for early termination.
  • The lease deducts interest cost as well as any capital allowances (wear & tear), as if he owned the asset outright

 

Flexi Rent

What is FlexiRent?

The substance of an Operating Lease is similar to the Finance Lease in that substantially all the risk and rewards incidental to ownership remains with the Lessee (The Lessor however takes commercial risk in the asset financed, in the form of a Residual Value)

How does FlexiRent work?

The customer "rents" the asset for an agreed term and makes regular repayments that include proportions of capital, interest charges and VAT Residual Value not less than 25% of original cost excl. VAT

FlexiRent - Operating Lease

  • Income Tax Treatment
    • The Lessee deducts the lease rentals
  • VAT Treatment
    • The Lessor charges VAT on each rental amount.
    • The Lessee can claim VAT input where the asset allows
  • Accounting Treatment
    • The asset is recorded as an "off-balance sheet" item ( subject to independent auditor approval)
    • The outstanding debt is shown as a note on the Balance Sheet
    • The Lessee deducts Rentals as an operating expense