Asset finance in Sligo

Established companies registered, headquartered and controlled in the west can approach the Western Development Commission’s loan fund, which usually lends €50,000 to €300,000 over three to ten years. Micro-businesses can ask LEO Sligo at City Hall about a Microfinance Ireland loan, which is 1% cheaper through the LEO.

Funding to buy or use business equipment, vehicles or machinery, where the asset itself is the lender's main security. Your company spreads the cost over the asset's working life instead of paying upfront. The main types are hire purchase, where you own the asset at the end, and leasing, where the lender keeps ownership. Because the lender can recover the asset, it is often easier to arrange than unsecured lending.

The lender pays the supplier for the asset and your company repays the lender over an agreed term, usually monthly. On hire purchase your company owns the asset after the last payment; on a lease the lender keeps ownership. The lender checks your accounts, bank statements and the asset itself, and can recover the asset if payments stop. VAT and tax treatment depend on the structure.

Banks, specialist asset finance companies and the finance partners of equipment and vehicle dealers. Some fund all kinds of assets, while others focus on vehicles, plant, IT or medical equipment. Each sets its own criteria, so compare at least two offers on the total amount repayable, the deposit and the fees, not only the monthly payment.

It depends on VAT, tax and how long you will keep the asset. With hire purchase, VAT on the full price is due at the start and your company owns the asset after the last payment, so it can usually claim capital allowances. With a lease, VAT is charged on each rental and the lender keeps ownership. Ask your accountant which suits your position.

Often, yes. Many lenders ask for a deposit on hire purchase, often around 10%, while leases usually ask for one or more rentals in advance. Some lenders offer 100% finance for strong companies and assets that hold their value. A trade-in can sometimes count towards the deposit, so ask the lender how it treats one.

Yes, with many lenders, subject to the asset's age, condition and resale value. Lenders want to know the asset will still be worth something if they have to recover it, so older or highly specialised items can be harder to fund or get a shorter term. A valuation or inspection may be needed, and buying from a dealer is usually simpler than a private sale.