Citizen UK Finance - Citizen Machinery

A straightforward repayment facility where the customer will ultimately own the asset. Repayments can be structured in a flexible way using a deposit, initial payments and/or a ‘balloon payment’ (final lump sum). The full VAT is payable at the commencement of the agreement.

Key features and benefits:

• Ultimate ownership.
• Ownership normally carries the potential for claiming writing down allowances and/or capital grants, including any enhanced first year allowances and per annum on a reducing balance basis.
• VAT on the cost of the asset is normally reclaimable.
• The interest can be fixed or variable interest rate.
• The interest element of repayments can normally be offset against taxable profit.
• The asset appears on your balance sheet.

A popular, flexible method of funding, which offers all the practical benefits of ownership.

Key features and benefits:

• When the asset is sold you normally receive the majority share of the sale proceeds.
• The flexible repayment structure gives you immediate and full use of the asset for a minimal outlay.
• Rentals can normally be offset 100% against taxable profit, spread over the economic life of the asset, typically 5 years.
• Asset treated as ‘on-balance sheet’, showing as an asset.
• VAT is paid on the rentals not the purchase price.

You pay for using the machine instead of paying to own it, thus helping cash flow and making ‘off-balance sheet’ funding possible. This type of agreement is effectively a long term rental.

Key features and benefits:

• The customer bears none of the residual risk on the equipment’s value.
• Rental profile can be matched to shorter term contracts.
• Rentals can normally be offset 100% against taxable profit.
• Asset normally treated as ‘off-balance sheet’ (subject to your auditors’ approval).

We recognise the ongoing value of your Citizen production equipment.

Your valuable machinery can be utilised to:

• Raise working capital
• Part fund an MBO or owner sale
• Act as security for further investment in your business without risking personal assets