Leasing and Asset Finance

The Charity Bank Asset Finance programme has been developed in response to an identified need among emerging social enterprises and enterprising charities.  It is aimed at organisations that struggle to obtain finance from mainstream sources, but where the purchase of a new minibus or computer system, for example, could make all the difference in improving the way in which they operate.

 

These organisations will often rely on donations and grants to buy vehicles and equipment. Although some businesses don’t need or require external finance, for those with growth ambitions and/or limited internal funds, obtaining appropriate external finance can be crucial.

 

Some may be reluctant to borrow to fund new equipment and vehicles, or have limited knowledge of what products are available and how they work.  Charity Bank is introducing fixed rate hire purchase and lease purchase into its portfolio of lending products.

 

The most important feature of hire purchase is that the customer gets ownership of the asset. 

• The customer chooses the equipment and supplier
• Charity Bank pays the supplier on their behalf
• The customer pays for the equipment (such as a vehicle) over a period matched to its working life
• Outright ownership passes to the customer at the end of the agreement on payment of the Option to Purchase Fee
• The asset appears on the customer’s balance sheet

• Funding is available for 2-7 years
• There is no early settlement penalty
• We DO NOT seek to take personal guarantees
• Interest rate is fixed at 7.5% per annum
• Fees - £150 Documentation Fee payable at start of agreement

£100 Option to Purchase Fee payable at end of agreement.