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.
