Barclays

Def: FlexiBuy is a flexible and cost effective installment sale agreement that is ideal for business or private individuals who want to own their assets outright at the end of the financing term.

FlexiBuy allows you the benefits of outright ownership coupled to term finance. FlexiBuy requires VAT to be charged up-front on the asset price and businesses are usually able to claim the VAT input immediately.

Features:

• Flexible structuring of installments, interest rate and term ­ normally up to 60 months.
• Automatic ownership of the asset
• Structure payments with Balloon payments to match cash flows.
• The ability to claim the tax benefit of capital and depreciation allowances as well as interest costs.
• Early termination options available.

How does it work:

Barclays purchases the asset and sells tit on credit to a customer on its FlexiBuy agreement. The customer repays the capital value plus interest charges over the agreed finance term. Ownership automatically passes to the customer upon final payment.

Def: FlexiLease allows you to fund Plant, Machinery, Equipment and Motor vehicles with flexible and convenient structures.

FlexiLease offers the benefit of off-balance-sheet financing with no outright ownership at the end of the financing term.

Features:

• Flexible structuring of rentals, interest rates and term.
• Rentals are tax deductible.
• Vat is required upfront and business is able to claim the Vat input credit immediately.
• Balloon payment options available.
• Early termination is possible.

How does it work:

Barclays (the lessor) purchases the asset and leases it on credit terms to a customer (the lessee) under a FlexiLease agreement. The customer "Rents" the asset for an agreed term and makes a regular repayment that includes proportions of capital and interest. Ownership of the asset always vests with Barclays and the FlexiLease agreement does not offer the customer any option of ultimate ownership of the asset.

Def: This type of agreement is structured in such a manner as to facilitate the removal of the asset from the client's balance sheet and at the same time offer the client different tax breaks compared to the FlexiBuy and FlexiLease.

Def: This product is available to leading brand franchise dealers to facilitate the purchase of dealer floor stock under a prescribed agreement. The product is intended mainly for Retail motor vehicles however commercial vehicles can also be accommodated.