Types of finance

A finance lease is a fixed cost rental facility. After paying rentals over an agreed term, which is known as the primary period, you have three options:

• The equipment can be returned to Paragon
• You can continue leasing the equipment
• You can sell the equipment on our behalf to a third party not related to your business and we pay you a pre-agreed percentage of the net sale proceeds

A finance lease usually suits businesses who cannot recover the VAT element of the deposit required under a Hire Purchase agreement or doesn't want the tax benefits of ownership.

Key benefits

• Spreads the impact of VAT, which is collected on each rental (including deposit) as it's due
• As you don't own the equipment, tax treatment may be more beneficial (subject to your tax status)
• Option to return equipment at end of primary term with no further liability

At Paragon, we typically offer a finance lease on the following assets:

• Business equipment
• Print and packaging
• Bus and coach
• Technology
• Pro AV and broadcast
• Medical
• Professions
• Construction
• Agriculture
• Fleet and logistics

With hire purchase, the asset is funded over a term - up to five years – with the repayments you make including capital and interest.

When you use hire purchase to fund your asset, the interest rate is fixed from the start so you can budget your costs effectively.

Repayments can be monthly or quarterly and we can even offer seasonal payments to give you lower repayments in periods when your business is normally less busy.

When you have paid all the repayments, ownership of the asset will pass to you on payment of an option to purchase fee.

Key benefits

• Fixed repayments
• Interest rate fixed at start of agreement so ease of budgeting
• VAT element of deposit recovered through your VAT return
• Seasonal payment options
• You claim tax benefits of ownership, subject to your tax status

At Paragon we typically offer hire purchase on the following assets:

• Business equipment
• Aviation
• Print and packaging
• Bus and coach
• Technology
• Pro AV and broadcast
• Medical
• Professions
• Construction
• Agriculture
• Fleet and logistics

An Operating lease allows you to use the equipment at a reduced monthly rental as Paragon set a residual value on the asset which is not payable by you. The ownership of the asset remains with Paragon and at the end of the agreement you return the equipment to Paragon in accordance with pre-determined return conditions​.

An operating lease is very useful if you’re looking to use high value or specialist equipment without the risk associated with depreciation.

Key benefits

• You’re protected from the risk of depreciation in asset value
• We set a residual value for the asset, which may reduce your monthly payments
• The asset and corresponding liabilities could be treated as ‘off balance sheet’
• You may be able to offset rental payments against taxable profits

At Paragon we typically offer an operating lease on the following assets:

• New construction assets​
• New commercial vehicles​

With sale and HP back, Paragon will buy the asset from you, agree a value and advance you the agreed amount. Your repayments are calculated in line with the income that will be generated by the asset and at the end of the agreement, you own the asset.

Key benefits

• You own the equipment at the end of the agreement
• No initial payment or deposit required
• No additional security required
• You inject cash into your business quickly
• Continued & uninterrupted use of the asset being financed over an agreed period

At Paragon, we typically offer refinance / sale and HP back on the following assets:

• Business equipment
• Print and packaging
• Bus and coach
• Technology
• Pro AV and broadcast
• Medical
• Professions
• Construction
• Agriculture
• Fleet and logistics

Receivables finance from Paragon allows you to realise the future value of customer contracts today.

We can take the credit risk on your customers and manage the collection of the customer instalments allowing you to concentrate on making more sales.

Key benefits

• Release the equipment cost within a contact upfront
• Use the cash released to support the fulfilment of a contract
• Accelerate development of your business by using a cash release to support your next investment

At Paragon, we typically finance the following forms of commercial receivables

• Debtor Books / Sales Ledgers
• Managed Services contracts
• Contract Hire agreements
• Other forms of Commercial Finance agreement

A commercial / business loan is a flexible financing tool that enables borrowing to be used for a wide variety of purposes. A loan may be secured on a businesses’ assets or be supported with additional securities.

Key benefits

• Simple documentation
• Flexible terms available

At Paragon we typically offer commercial / business loans in the following markets:

• Business equipment
• Aviation
• Print and packaging
• Bus and coach
• Technology
• Pro AV and broadcast
• Medical
• Professions
• Construction
• Agriculture
• Fleet and logistics