What is a Non Consumer?
A Non Consumer is a sole trader or company who purchases goods and services for business use. At First Citizen Agri Finance, we understand the challenges of modern day farming. That's why we have designed our Non Consumer Hire Purchase and Lease Agreements to match your income situation. Therefore, our finance agreements can accommodate monthly, quarterly, half yearly, yearly or seasonal payments depending on your particular circumstances and income situation.
Finance is available over any term between 2 and 7 years depending on the type and age of the asset being financed. First Citizen Agri Finance will provide up to 90% LTV (Loan To Value) of the asset, subject to existing credit criteria. Other terms and conditions may apply.
Our Asset Finance Agreements have a fixed interest rate to help you budget and manage your cashflow. Please note that the interest rate charged will be fixed at the prevailing rate applicable on the day the Agreement is made and the Agreement will clearly show the financial advantage provided by the SBCI.
A) Non Consumer Hire Purchase
If you want to buy equipment outright, our Non Consumer Hire Purchase Agreement is the flexible and cost effective alternative to overdrafts or term loans. The asset becomes your property when you have paid the final instalment and the completion fee due under the Agreement. Some features and benefits of Hire Purchase are as follows -
- Fixed Payments over a Fixed Term
- Payments which you can time to suit the income pattern of your farm enterprise or agri business.
- The VAT on the purchase price can be re-claimed immediately after the transaction, provided you are VAT registered
- Interest charges can be offset against taxable profits
- Flexible deposit payable (minimum 10%)
- Claim back your capital allowance costs on the cost of Asset
B) Lease Agreements
Leasing is an efficient way of paying for the use of equipment over a set period of time. The asset is leased to you at a fixed rental for a fixed term at a fixed rate. Put simply, we own the asset and charge you for the use of it until the final rental is paid. At the end of the rental period you will have the option to purchase the equipment for a nominal fee or trade it in as a deposit against new equipment. Some other benefits of leasing are -
- Initial Capital Outlay is minimised, thus preserving your cashflow
- Leasing rentals may qualify for tax deductions
- You get to use the equipment just as if you owned it
- Flexible repayment terms
- The VAT element of the rental payment can be reclaimed provided you are VAT registered