Frequently asked questions

You can not own the leased goods at the end of the 36 months, or else you must pay the tax and the purpose of the lease is financially ineffective. So, your options normally are,

1. End of term option payment. To enable you to claim the monthly ‘Hire’ payments as a revenue expense you are unable to take ownership of the items directly from the lender. Cashflow Leasing acts as a third party. Where we take the title of the goods from the finance company and can provide you with continued use of the items for a further two years. This process costs just two additional monthly payments and covers the continued annual use of the assets for the two years after the agreement concludes. At the end of extended term it is your responsibility to dispose of the goods, this is on the basis that there is no intrinsic value remaining in the goods.
2. Nominate a third party – Depending on the lender, they may allow you to nominate a third party to take ownership, they will charge a Final Rental Fee which is varies per lender from 1 months premium or 1% plus vat of the original invoice value, this is payable, 30 days after the Minimum Hire Period comes to an end and once this has been paid a VAT invoice will be issued to confirm that payment. At that stage, the lender will then transfer the title of the assets to a nominated third party of your choice.
3. Take Ownership – The lender can, if required, relinquish title directly to the hirer (you) however, we would urge you to seek advice from your accountants on this prior to your request as this could well have an effect on your accounting treatment of the rentals throughout the term of the agreement.
   Us or the lender will contact you approximately 3 months before the end of your agreement term to determine which option you wish to select and begin the appropriate process at that time.

Yes, it is a mandatory requirement that you have adequate contents insurance for the leased goods. This covers loss, damage (accidental or otherwise), theft etc. of all items purchased using the finance provided. If you cannot provide evidence that you have adequate insurance, the finance lender will activate an insurance policy on your behalf and you will be charged monthly.

1. Buying the goods makes your purchase a capital cost – you can only claim back capital costs on your tax return as capital allowances which can take forever to get back just a small percentage of the outlay. Our finance is an expense which can be claimed back as you don’t own the goods during the finance term. At the end of the finance term you can continue use for up to 24 months after the finance finishes by paying two more monthly payments to Landlord Smart. It is then your responsibility to dispose of the used items when you wish to upgrade.
2. Business is all about cash flow. Once you have spent the money, how long will it take to get the money back, taking into account that you pay tax on profits in your business? Using Landlord Smart Finance means you keep the cash flow in your business to use on other investment opportunities and 100% of your payments are a legitimate business expense under Generally Accepted Accounting Practices (GAAP).
3. Using credit cards will show against your personal lending on your credit file, therefore if you want to scale your business, your personal credit rating will be severely impacted.

Yes, we can offer finance to start-up companies as well as those with several years of trading history. If your company has been trading for less than three years your loan interest rate may be higher due to an increased risk to the lender. The lender will carry out a check on your credit file as a guarantor to support your lease finance application. They will require personal bank statements to support the application. You must also have an active company bank account from which the fixed monthly finance charges will be paid.

No you don’t have to be, although you would get some benefits of claiming back the VAT on your monthly lease payments if you are. The lease finance only applies to the ‘excluding VAT’ total for the goods. VAT is then added to your monthly lease payments which can only be reclaimed if you have a VAT registered company.

To fully benefit from our service, you will need to spend a minimum of £2,000 nett. However, some lenders have increased their minimum is £5000 nett.

There is no limit to the amount you can borrow, however if you are planning on applying for finance on large projects/many projects, please discuss this with us so we can ensure the lender is aware of your situation and can provide you with the right products.

Yes, you can, depending on time the business has been trading and it own credit worthiness, however, in some circumstance, you may be asked to have someone with a higher credit worthiness to support your application as a guarantor – read What if I need a 3rd party guarantor? (link to below FAQ)

The ideal situation is that at least one of the directors owns at least one property but that does not have to be their residence. If none of the directors are homeowners, then you may require a 3rd party guarantor to stand with you on the application. – read What if I need a 3rd party guarantor? (link to below FAQ)

If your business has been trading over 3 year the lenders may overlook the property owning status – so please contact us to discuss your individual situation.

In some situations such as bad credit or no homeowning directors, a 3rd party guarantor is required, this person must be a homeowner and have good credit, they will need to provide ID, bank statements etc.
However, using a guarantor to support your application may incur additional costs as a solicitor is required to sign off their Personal Guarantee, so please speak to us if you think one is required.

Yes. Cashflow leasing is one of the only brokers who work with a lender that can lend lease finance to overseas investors, this is on a case by case basis, so please contact us and we can discuss this with you.

The finance company will only make one payment per application so if you have suppliers that are delivering items at the same time then these can be on one application. If you wish to finance a range of items that could be required at different times on your project then they would need to be treated as separate finance applications.

Yes. This is easiest done retrospectively, where purchases have already been made, or if properties are going live at the same time. Contact Us to discuss this further.

Insurance – you are required to have the items on finance insured against loss and damage during the full three-year finance term. If you have your own insurance you will be required to provide evidence of this to the finance company. If no evidence is provided, your finance provider will automatically start an insurance policy and charge you a monthly fee for this.

Documentation Fee – A documentation fee is payable direct to the funder as part of your first monthly payment. This fee is applicable on your first monthly payment and is clearly stated in the funder’s finance offer.

Continued Use Option – You will be contacted around four months before your finance term ends to decide on how you want to proceed and whether you want to continue using the products or replace them and start a new finance application.

We look at each customer’s needs individually and will share finance across our many finance partners to ensure we are not reliant upon just one lender to service your requirements. We are happy to discuss your business growth and the level of finance that you are likely to require which will enable us to find the most suitable funders in the market.
Depending on the company’s finances, there may come a time that the lenders will put a halt on borrowing, as they may feel you are over leveraged. You will need to wait a while to increase your profit to enable you to do additional lending.

If you wish to settle the finance before the final payment is due, a settlement figure will be provided upon request from the funder selected for your finance application.

Will need to action an end of term option so it isn’t a lease to own and you lose your tax benefit.

If the company fails to meet repayments as and when they are due, the finance company may look to the directors’ personal guarantees. This will be at the finance company’s discretion. We would advise that contact should be made as soon as possible with the finance provider if you are unable to meet your monthly payments. (as a last resort) They may collect the items from the property.