Asset finance · Method
How the asset finance calculator works
See separate hire-purchase-style and lease-style cash flows. The lease assumes the asset is returned, not purchased.
What you enter
- Asset price excluding VAT
- Net asset price; VAT and tax effects are outside this illustration.
- Deposit / upfront contribution
- Enter zero if none is assumed. Less than the net asset price; non-refundable in the lease illustration.
- Finance amount
- Must equal net asset price less deposit. VAT and fees are not financed.
- Term in months
- Whole months, 1–240; payments in arrears.
- Annual rate
- Enter a quoted rate or your own assumption, from 0% to 100%. This is not an APR.
- Annual rate convention
- Interest assumptions, not a quoted lease rental or an APR.
- HP final balloon
- Paid by you at the end, in addition to the final regular repayment. Enter zero if none.
- Lease assumed end residual value
- The lessor's assumed recovery from the returned asset, not your final payment. Enter zero if none.
- Upfront arrangement fees
- Paid separately, not financed. Enter zero explicitly if you assume no arrangement fee.
Method and assumptions
Net finance amount = net asset price − deposit. Both structures use monthly payments in arrears and the selected nominal/effective rate conversion.
HP payment = (principal − discounted balloon) × monthly rate / [1 − discount factor]. Total HP cash includes deposit, monthly payments, the final balloon and upfront fees. Ownership may transfer only after all contract and option-to-purchase conditions are met.
Lease-style rental uses the discounted residual instead of a borrower balloon. The residual is assumed to be recovered by the lessor from the returned asset, so it is excluded from lessee cash payments. This is a simplified rental illustration, not a universal method of quoting leases.
The upfront lease contribution is non-refundable, not a refundable deposit. Return conditions, maintenance, option fees and other costs are not modelled. No ownership transfer is assumed.
Figures exclude VAT. No VAT timing, corporation tax relief, capital allowances or accounting treatment is calculated or promised. These depend on the specific contract and tax position.
Status of these figures
Illustrative only, not a binding finance offer. Costs vary by lender and applicant; additional fees may apply and eligibility is subject to assessment. Ocean Capital Exchange is an introducer, not the lender. Product-specific regulatory disclosures require review before production. The asset may be repossessed if payments are not maintained. HP ownership depends on the contract; this lease illustration assumes no ownership transfer. VAT, tax and accounting treatment require structure-specific advice.
Not every commercial finance product is regulated, and regulatory treatment varies by product, provider and borrower. Ocean Capital Exchange introduces businesses to third-party providers and is not a lender. These disclosures are awaiting owner and regulatory review before production.
Questions about this calculator
Why are hire purchase and leasing shown separately?
The HP model includes a borrower-paid final balloon and conditional ownership. The lease model assumes return of the asset and a residual value recovered by the lessor, not paid by you.
Does the calculator include VAT or tax savings?
No. All asset values and payments are shown net of VAT. VAT timing, tax relief and accounting treatment depend on the actual structure and need professional advice.
Independent background reading
These independent sources explain general concepts. They do not endorse Ocean Capital Exchange or confirm our providers, product availability or terms. Your provider’s agreement takes precedence over an illustration.