Download our app
You can pay in cheques, transfer money, and do much more, all from your mobile.
Corporate Asset Finance
Corporate & Institutional Banking Asset Finance
Maintaining the right level of working capital to support growth and become more sustainable has never been more important. Having access to the latest equipment/assets and technology to improve productivity can give you an advantage over your competitors.
Asset Finance can help you purchase key assets to drive your business forward without tying up your cash. At Lloyds Corporate & Institutional Banking Asset Finance we can provide bespoke solutions to existing customers meeting the following criteria:
- The asset must be for use in your business
- Your turnover must exceed £100 million per annum
- £250,000 minimum transaction size
- You must have been trading for a minimum of 24 months and be UK-based.
-
Finance Lease is a flexible way to use assets while spreading the cost over an agreed term. At the end of the lease, you have the option to extend the lease, or request Lloyds Bank to sell the asset to a third party with you receiving the majority of the sale proceeds.
Lloyds Bank can fund up to 100% of the purchase price and VAT is paid on the rental payments, rather than the overall purchase price.
Benefits:
- Deferred VAT payments – VAT is paid on your monthly repayments instead of the asset purchase price, which is covered by Lloyds Bank
- Operational benefits – Your business has day-to-day control of the asset and the economic benefits that it creates
- Capital allowances – You may be able to claim capital allowances for some finance leases
-
Maintaining the right level of working capital to support growth and become more sustainable has never been more important.
Operating Lease (or Residual Value Lease) can allow you to enjoy the economic benefits of an asset without the risk of owning it. This is ideal for businesses looking to minimise the impact of new purchases on their cashflow, or who need to use an asset for a fixed period of time.
How it works:
- You identify the asset you require and agree the price with the supplier
- Lloyds Bank purchases the asset from the supplier or acquires it from you on a ‘Sale-and-Leaseback’ basis
- Lloyds Bank builds in residual value − a forecasted future value of the asset − which reduces the capital and interest paid by you during the finance agreement
Benefits:
- Flexibility: Often more cost effective when compared to other standard debt solutions
- Security and operational benefits: At the end of the finance agreement, you have the option to return the asset to Lloyds Bank or to sell it on our behalf
-
Contract Receivable Purchase enables you to unlock tied-up cashflow by selling the contract for committed services or assets to Lloyds Bank. This then releases working capital on a non-recourse basis, allowing you to drive future growth ambitions.
The ‘asset’ is the underlying contract receivable from a strong Client credit counterparty transacting with your business.
Benefits:
- Ability to raise non-recourse monetary receivables from a contract and benefit from off balance sheet treatment. Subject to Auditor's approval
- Pricing charged by Lloyds Bank to you reflects the underlying credit strength of your contractual counterparty
Minimum criteria:
- Lloyds Bank to take title to underlying assets where applicable
- Expectation of direct payment from Receivable Payer to Lloyds Bank
- Maximum maturity of cashflows typically 10 years. Cashflow maturities in excess of 10 years may be considered depending on funding requirement
- Minimum £20 million facility size
- Available currencies in GBP or EUR
-
Lloyds Bank has a range of Asset Finance based solutions that are designed to support your needs and address the challenges of funding both Professional Indemnity Insurance (PII) costs and annual tax liabilities.
PII Premiums
The growing cost of funding PII means that many legal and accountancy practices are looking to spread the expense to avoid having to make a single large payment.
At Lloyds Bank we can offer an Asset Finance solution to spread these PII premium costs over a year, helping provide a more flexible and cashflow-friendly way to finance renewals.
Key features of the Lloyds Bank PII:
Funding Facility
- Available to existing Lloyds Bank clients who are Limited Liability Partnerships or Limited Companies
- Repayment period of up to 12 months
- Dedicated support team to ensure prompt set-up of agreement and quick response to queries
- Full supporting financial information is required to set up agreement
- Subject to a minimum advance in excess of £1m
Office Refurbishments
Lloyds Bank can assist with the refurbishment of our clients' premises, including IT hardware and office equipment. Our Asset Finance solutions can help spread the cost of upgrading office space and preserve working capital.
Subject to client premises being freehold and underlying assets being new, tangible, movable and identifiable.
-
Lloyds Bank can support you with your sustainability plans. We are committed to providing funding for sustainability projects and helping businesses across the UK with their transition to a low carbon future.
Green Asset Finance is discounted finance for 'green' assets. And because they're 'green', you get an interest rate discount of up to 0.25% for funding them. Subject to meeting certain criteria, we can provide finance for a range of assets, under the following categories:
- Electric Vehicles and Charging Infrastructure
- Agriculture
- Construction / Industrial / Manufacturing Equipment
- Energy Generation
A flexible way to buy new and used assets and spread the cost over their useful life, with the option to purchase at the end of the finance agreement.
Maintaining the right level of working capital to support growth and become more sustainable has never been more important. Asset Finance provides support in purchasing key assets rather than paying upfront in full.
Having access to the latest equipment to improve your productivity can give you an advantage over your competitors. The asset being purchased acts as Lloyds Bank’s security for the facility. Lloyds Bank typically provides funding for 90% of the purchase price of the asset.
Benefits:
- Protect cash reserves
- Enhance productivity
- Improve efficiency
- Become more sustainable
Pre-Hire:
- We may be able to finance staged payments to an asset supplier during a ‘Pre-Hire’ period of up to 12 months where your business incurs related build and commissioning costs
- The finance agreement would cover its build, commissioning and useful life
- Finance during this period may be subject to Lloyds Bank taking security over other assets not already subject to security by a lender
- This solution preserves working capital before and after the asset begins generating economic benefits for your business
Asset Finance for smaller businesses
Simple asset financing options for businesses with up to £25m turnover.