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Glossary of Terms

If you're unsure of what something on our website means, take a look at this page. Here we define some of the terms we use when talking about asset finance. If you're still unsure or need help with anything, contact our friendly team.

 

Asset

A possession of a business, such as a piece of machinery, equipment, or transportation.

 

Asset Finance

A loan or other finance product taken out against an asset such as a piece of machinery, equipment or transportation.

 

Balloon Payment

The final payment on a loan in order to pay the debt in full – often a larger amount than previous instalments.

 

Contract Hire

A finance agreement where an asset is hired for a fixed term as opposed to the lifetime of the asset.

 

Delivery Up Guarantee

A form of security to ensure support for the return of equipment or vehicle to Arkle if required. Find out more.

 

Finance Lease

Allows for the hire of goods for an agreed period of time where payments are made in return for the use of equipment or vehicles. Find out more.

 

Fixed Term

A contract which lasts for a fixed period of time, ending on a specific date where payments are made in return for the use of equipment.

 

Hire Purchase

A traditional form of asset finance which provides the client with the immediate use of the equipment or vehicle, whilst also permitting the option to purchase the product at the end of the period of hire for a pre-agreed sum. Find out more.

 

Lessee

A person who is granted the lease of an asset, a property or transportation.

 

Lessor

The person or company who provides the lease of an asset, a property or transportation (e.g. Arkle Finance).

 

Limited Sum Guarantee

A guarantee which is limited to a sum of money which is less than the total amount payable under a specific finance agreement. Find out more.

 

Loan

A sum of money borrowed for the purchase of an asset, expected to be paid back with interest.

 

Loan & Chattel Mortgage

A fixed rate period loan agreement secured by a legal charge on a specific item of equipment or vehicle. Find out more.

 

Mortgage

A loan agreement where money is used to buy an asset and where Arkle takes security in the form of a mortgage on the asset.

 

Operating Lease

An agreement for a fixed period of time where payments are made in return for the use of equipment. Find out more.

 

Primary Period

The initial period of a lease, usually shorter than the working life of the asset.

 

Refinance

To replace the original loan on an item with a new loan, generally offering a lower rate of interest.

 

Rental

A contract where payments are made in return for the use of equipment.

 

Secondary Period

A second leasing period which extends beyond the primary period of lending agreed by the finance provider and the client.

 

Secured Loan

A loan where the lender has some rights over the client’s asset if the loan is not repaid.

 

Stage Payment Funding

A short term loan agreement which allows the client to periodically pay for the costs of a build to the supplier without incurring the costs of financing the entire the build before the equipment is in use.