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FAQs

Arkle Finance FAQ

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Common questions
Do I become the owner of the equipment or vehicle?
Hire Purchase agreements include an implicit term which says you have the option of becoming the owner for a nominal sum. This sum is paid at the end of the agreement. When you Lease or Rent equipment and vehicles you will not normally become the owner. In certain circumstances you are able to buy the equipment at the end of the lease at fair market value.
How much deposit do I pay?
This is discussed and agreed at the outset on a case by case basis. Sometimes no deposit will be payable and in other cases up to 20% of the equipment cost is payable as a deposit. We do allow you to pay more than a 20% deposit to reduce the impact of monthly payments.
With Hire Purchase do I have to pay all the VAT at the outset of the agreement?
Usually yes, but not always. In some cases you can pay the VAT to Arkle up to three months after the start of the agreement by Direct Debit. This gives you ample time to submit your VAT return and receive the VAT refund before you pay the same sum to Arkle. Arkle refers to this a deferring the VAT.
Can I include a balloon payment at the end of the payment schedule?
We can always consider offering a credit facility with a balloon payment which is a larger than normal payment normally payable at or near the end of the finance agreement. The impact of this will be to reduce the value of the regular payments at the start of the term. Please be aware that you will need to make arrangements to pay the balloon on the due date at the end of the contract.
Can I pay monthly or quarterly payments by invoice instead of Direct Debit?
In order to keep administration costs to a minimum Arkle is unable to collect payments by invoice. A valid Direct Debit is required at all times.
Is there any type of equipment or vehicle that Arkle does not fund?
Arkle can assist with all types of equipment and vehicles.
How long does it take to get credit approval?
From a few hours to a few days. It all depends upon the complexity of the case in hand.
What is the longest term I can spread the finance repayments over?
This depends on the expected working life of the equipment and the numbers contained in your financial accounts. If the equipment was likely to last for three years Arkle would not advise spreading the finance costs over four or five years. Arkle is open-minded to repayment terms in excess of five years for suitable equipment types and vehicles.
My chosen supplier is not based in the UK and the supplier wants payment in a foreign currency. Can Arkle help?
Yes. Where the supplier is in the EU the process is simple. Where the supplier is based in a non-EU country it may be possible for Arkle to make these arrangements.
My UK based company would like to finance equipment that will be located overseas for most of the time. Most finance companies stipulate the equipment must remain in the UK. Can Arkle help?
Yes, providing Arkle is made aware at the outset that it is your intention to locate the equipment overseas. Remember the equipment must be insured at all times.
What happens to Arkle’s finance agreements if I sell my business?
Arkle will work with you and your purchaser to ensure a satisfactory outcome. Naturally, this information will be treated in the strictest confidence.
Do I need to insure the equipment or vehicle?
Yes you do need to insure the equipment or vehicle with a reputable insurer. You must insure against any loss for at least the full cost of replacing your equipment or vehicle as new (including total loss), damage from all risks and against claims for injury, or damage caused by it. Arkle may ask for written evidence confirming the equipment or vehicle is insured. Arkle can arrange for the asset to be insured on your behalf and will usually contact you shortly after the start of the contract to offer the facility.
When do you pay the supplier of the equipment?
Arkle pay the supplier as soon as possible. Subject to receiving signed and complete finance documents and a correct invoice from the Supplier, Arkle will contact you by telephone to confirm you have received and accepted the equipment and that the agreement is due to be activated. Once all is confirmed Arkle pays the supplier keeping you in control of the process at all times.
The supplier wants payment before he will allow me to collect the equipment. Can Arkle help?
Yes. This is not uncommon particularly where vehicles are concerned. There are a number of ways to approach this ranging from formal Stage Payment Funding agreements to a simple agreement between you and Arkle.
My business is struggling and it cannot meet its financial commitments. What shall I do?
Rest assured, Arkle will work with you to find a solution. Please raise this matter with Arkle as soon as the situation becomes apparent – the sooner Arkle are aware, the sooner we can help you.
As a VAT registered business how do I reclaim the VAT paid on my Hire Purchase Agreement?
You will receive a copy of the signed Hire Purchase agreement two to four weeks after Arkle pays your supplier. This copy agreement is your VAT invoice and includes Arkle’s VAT number and tax point date. Please use these details to reclaim the VAT paid. Please do not use a copy of the supplier’s invoice as this is technically incorrect.
As a VAT registered business how do I reclaim the VAT paid on the Lease or Rental agreement?
You will receive an invoice from Arkle annually sometime during the month following the start date of your lease agreement. This invoice will detail Arkle’s VAT number and all the rentals due for the next twelve months together with VAT due. This is your VAT invoice for the coming year.
I wish to settle my finance agreement early. How do I do this?
Most finance agreements are designed to run for the full term, however, circumstances do change so should you wish to settle the finance agreement early please contact Arkle by phone or email. A formal quotation will be provided.
How do I obtain a copy of my finance agreement or VAT statement?
Simply contact Arkle by phone or via the contact page on Arkle’s website and Arkle will email or post a copy of the missing documents to you.
Specific questions
Arkle Finance FAQ
Light Aircraft Mortgage
Are aircraft mortgages available to both private individuals and businesses?
Yes they are.
Is there any limit on the age of the aircraft for mortgage purposes?
No but the condition and value of the aircraft is very important.
Arkle Finance FAQ
Marine Mortgage
Are marine mortgages available to both private individuals and businesses?
Yes they are.
Is there any limit on the age of the boat for mortgage purposes?
No but the condition and value of the boat is very important.
Arkle Finance FAQ
Operating Leasing (Education)
Do I become the owner of the equipment?
When you use an Operating Lease you will not normally become the owner of the equipment.
How much deposit or advance rentals do I pay?
Normally only one monthly rental or one quarterly rental is payable at the outset.
Can I pay monthly or quarterly payments by invoice instead of Direct Debit?
In order to keep administration costs to a minimum Arkle is unable to collect payments by invoice. A valid Direct Debit is required at all times.
How long does it take to get credit approval?
From a few hours to a few days. It all depends upon the complexity of the case in hand.
What is the longest term I can spread the finance repayments over?
This depends on the expected working life of the equipment. Even where long life equipment is involved such as a temporary building schools and academies are prohibited from leasing equipment for any term greater than 5 years.
Do I need to insure the equipment?
Yes you do need to insure the equipment with a reputable insurer. You must insure against any loss for at least the full cost of replacing the equipment as new (including total loss), damage from all risks and against claims for injury, or damage caused to it. Arkle may ask for written evidence confirming the equipment is insured. Arkle can arrange for equipment to be insured on your behalf and will usually contact you shortly after the agreement starts to offer the facility.
When do you pay the supplier?
Arkle pays the supplier as soon as possible. Subject to receiving signed and complete finance documents and a correct invoice from the suppler, Arkle will contact you by telephone to confirm you have received and accepted the equipment and that the agreement is due to be activated.
The supplier wants payment before he will deliver the equipment. Can Arkle help?
Yes. This is not uncommon particularly where vehicles are concerned. The most common solution is a simple agreement between you and Arkle confirming Arkle pays the Supplier before delivery.
How do I obtain a copy of my finance agreement or VAT statement?
Simply contact Arkle by phone or email or via the contact page on Arkle's website and Arkle will email or post a copy of the missing documents to you.
We are a state funded school. How can we be certain Arkle's lease is an Operating Lease?
Arkle is confident that the lease offered to you is an Operating Lease, however, you may wish to refer the lease documentation together with a copy of the equipment suppliers quotation to your Local Authority and seek their independent view.
Arkle Finance FAQ
Seasonal Payments
Can I change the seasonal repayments part way through the repayment term?
Normally no. Once agreed and documented at the outset of the finance agreement the pattern of the seasonal repayments is fixed for the life of the finance agreement.
Arkle Finance FAQ
VAT Deferment
Is VAT Deferment available in every case?
No, This is used only with Hire Purchase and is considered on a case by case basis.
Arkle Finance FAQ
Rental (Minimum Term)
Are there any circumstances where Minimum Term Rental would not be appropriate?
Yes, where high value equipment or vehicles are involved and where you wish to become the owner at the end of the rental term.
Arkle Finance FAQ
Rental (Fixed Term)
Are there any circumstances where Fixed Term Rental is not appropriate?
Yes, where high value equipment or vehicles are involved and where you wish to become the owner at the end of the rental term.
Arkle Finance FAQ
Limited Sum Guarantee
Does Arkle require guarantees in all cases?
No, each case is considered on it own merits and in many circumstances Arkle does not require any form of guarantee from directors, shareholders or associated group companies.
Arkle Finance FAQ
Delivery Up Guarantee
In what circumstances is this kind of guarantee used?
Normally where the equipment or vehicle commands a strong resale value.
Arkle Finance FAQ
Stage Payment Funding
My chosen supplier is not based in the UK and the supplier wants payment in a foreign currency. Can Arkle help?
Yes. Where the supplier is in the EU the process is simple. Where the supplier is based in a non-EU country it may be possible for Arkle to make these arrangements.
Is there a minimum amount applicable?
Yes. Normally Stage Payment Funding is only available where the equipment or vehicles cost more than £100,000. Arkle will consider lesser amounts as an exception.
Arkle Finance FAQ
Loan
Can Arkle provide a loan to finance working capital or re-finance and existing item of equipment or vehicle?
No, Arkle does not offer loans for working capital and re-finance purposes.
Arkle Finance FAQ
Loan & Chattel Mortgage
Can I use a chattel mortgage if I am a sole trader or partnership?
No, this is only available to some corporate bodies which includes limited companies.
Arkle Finance FAQ
Operating Lease
The supplier wants payment before he will allow me to collect the equipment. Can Arkle help?
Yes. This is not uncommon particularly where high value equipment or specialist vehicles are concerned. There are a number of ways to approach this ranging from formal Stage Payment Funding agreements to a simple agreement between you and Arkle.
My chosen supplier is not based in the UK and the supplier wants payment in a foreign currency. Can Arkle help?
Yes. Where the supplier is in the EU the process is simple. Where the supplier is based in a non-EU country it may be possible for Arkle to make these arrangements.
My UK based company would like to finance equipment that will be located overseas for most of the time. Most finance companies stipulate the equipment must remain in the UK. Can Arkle help?
Yes, providing Arkle is made aware at the outset that it is your intention to locate the equipment overseas. Remember the equipment must be insured at all times.
Arkle Finance FAQ
Finance Lease
Why would I use a finance lease as opposed to rental (fixed term)?
Where you are acquiring high value long life equipment or vehicles which you might wish to sell and benefit from a strong resale value.
Arkle Finance FAQ
Hire Purchase
Do I become the owner of the equipment?
Hire Purchase agreements include an implicit term which says you have the option of becoming the owner for a nominal sum. This sum is paid at the end of the agreement. When you lease or rent equipment and vehicles you will not normally become the owner. In certain circumstances you are able to buy the equipment at the end of the lease at fair market value.
I do not wish to pay all the VAT straight away. Can Arkle help?
Yes. Providing your credit standing is good, Arkle will fund the VAT for you for up to three months. We refer to this as VAT Deferment. This will give you time to reclaim the VAT from HMRC using Arkle’ s counter-signed Hire Purchase agreement showing Arkle’s VAT number and tax date point. On the third month of the finance agreement Arkle will collect all the VAT applicable to the cost price plus the usual monthly repayment by Direct Debit.
Is there a cost associated with Arkle funding the VAT for up to three months?
Yes, interest is charged on the funding that relates to the VAT but the interest is not charged separately. Instead the interest charge is spread over the entire length of the finance agreement.
Are there any situations, types of equipment, or vehicles which would be excluded from VAT Deferment?
Arkle would be unable to assist with a VAT deferment where: • You are importing a vehicle or equipment into the UK from overseas • The equipment or vehicle does not attract VAT at the standard rate • You are not registered for VAT • The VAT is not reclaimable, i.e. you are acquiring a new car which is not “VAT Qualifying”
My business income fluctuates seasonally. At certain times of the year income is good and at other times income is poor. Can Arkle help?
Yes. Normally monthly or quarterly finance repayments are equal throughout the repayment term, however Arkle would be pleased to discuss and agree a fixed repayment schedule which includes larger repayments when your income is good and reduced repayments when your income is poor. We refer to this as Seasonal Payments.
I am acquiring equipment next month but I will not receive any income as a result of the investment for at least six months. Can Arkle help me?
Yes. Providing your credit standing is good, Arkle would be happy to discuss and agree reduced repayments for an initial period of up to 12 months. Normally repayments are equal throughout the repayment term.
Can Arkle advise me on the most suitable repayment term for my chosen equipment or vehicle?
Yes. Arkle would be pleased to discuss the expected working life of the equipment with you. The vast majority of new equipment can be financed for up to 5 years. However, where technological obsolescence is likely, it might be prudent to select a shorter repayment term such as 2,3 or 4 years. One example where a shorter repayment term might be applicable would be IT equipment.
Which types of equipment or vehicles are suitable for repayment terms of up to 8 years?
Providing your credit standing is very good we can offer longer repayment terms on equipment or vehicles where there is little risk of technological obsolescence or where the anticipated usage is likely to be low. In addition there are some specific industry sectors and equipment types where long repayment terms are normal. These include but are not limited to: classic cars and motorbikes, aircraft, boats, PV solar, biomass boilers, ground and air source heat pumps, wind turbines, tower cranes and specialist waste tanker vehicles.
Which types of equipment or vehicles are suitable for repayment terms of up to 10 years?
Providing your credit standing is very good we can offer longer repayment terms on equipment or vehicles where there is little risk of technological obsolescence or where the anticipated usage is likely to be low. In addition there are some specific industry sectors and equipment types where long repayment terms are normal. These include but are not limited to: aircraft, boats, PV solar and wind turbines.
How much deposit do I pay?
This is discussed and agreed at the outset on a case by case basis. Sometimes no deposit will be payable and in other cases up to 20% of the equipment cost is payable as a deposit. We do allow you to pay more than a 20% deposit to reduce the impact of monthly payments.
How long does it take to complete the documentation and pay my supplier?
Once your credit facility has been approved and if you request use of our e-signature document we can complete the payment transaction to your supplier within a few hours. The contract will then be active. Alternatively we can email or post the documents to you to sign and return by post.
Can I include a balloon payment at the end of the payment schedule?
We can always consider offering a credit facility with a balloon (larger than normal payment normally payable at or near the end of the finance agreement). The impact of this will be to reduce the value of the regular payments at the start of the term. Please be aware that you will need to make arrangements to pay the balloon on the due date at the end of the contract.