AgriFinance Hub

AgriFinance Hub offers Asset Finance Solutions by assisting clients to source finance on moveable assets. Our service is similar to that of a Bond Originator. We do the required administrative work and submit the paperwork to the various credit departments. We facilitate Bank loans or Financial and Operating leases. Premiums can be structured with or without deposit; we offer payment periods which can be monthly, quarterly, half yearly or yearly, giving clients the flexibility to decide what option suites them best. This makes the process of owning the equipment you want to buy from suppliers so much easier.

We can arrange for the following finance options:

1. Instalment Sale– Normal bank loan where deposit & rate is offered, premium frequency can be monthly, quarterly, half yearly or yearly, asset goes into asset register and you depreciate it as per normal.
2. Financial Lease – Zero deposit , premium frequency 6 monthly ( in advance ), asset goes into asset register as above and normal depreciation – benefit here is 6 month premium much less than deposit.
3. Operating Lease with Ownership – Zero Deposit , premium monthly , term rental contract so asset does NOT go into your asset register , premium is 100% Tax Deductible as operating expense- see attached

Assets Already Financed

Frequently Asked Questions

• What is an Operating Lease with ownership ( Rent-to-Own)?    

An operating lease is a term contract for the use of equipment during a fixed term, with ownership option and the end of term. Product therefore does not reflect in client`s asset register.

• Why Operating Lease rather than Hire Purchase?

An operating lease does not affect your balance sheet`s debt ratio, which means it has no impact on your other facilities such as over draft, production loans or bonds , it is Off Balance Sheet Funding.

• What is value of product at end of term?            

Value of product is determined by dealership that does trade-in, full value of product belongs to the client, this is the reason ownership option is given on contract.

• What is benefit of 0% Deposit?

Creates cash-flow, opportunity cost of capital is important for any business.      

• What is interest rate?

Premium is calculated according a fixed rental premium, no interest rate is quoted.

• How does VAT payment work?

Vat is payable monthly on invoice, creating a better Vat claim over term     

• Premium Terms    

Premiums are payable monthly or quarterly, normally in advance or arrears depending on client.      

• TAX Benefits

Premiums are 100% TAX DEDUCTIBLE as an Operating Expense over term.

• Can I settle anytime?    

Yes, settlement can be requested and will be calculated according to outstanding term. 

• Who Pays Insurance and Maintenance?

The client pays as per normal conditions for hire purchase.