Asset finance · Method
How the asset finance calculator works
Estimate hire-purchase-style repayments, including the deposit, any final balloon and upfront fees.
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. Must be less than the net asset price.
- 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 provider quote or an APR.
- HP final balloon
- Paid by you at the end, in addition to the final regular repayment. 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. The model uses 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.
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. The asset may be repossessed if payments are not maintained. HP ownership depends on meeting the contract's payment and purchase conditions. VAT, tax and accounting treatment require professional 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.
Questions about this calculator
Does the final balloon transfer ownership?
A balloon is an additional final payment. Ownership depends on completing all contractual payments and any option-to-purchase conditions, not simply paying the regular instalments.
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.