Residual Value FAQ's on HP Finance View Master Lease Agreement
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Loan Year TermLoan Amount in UK£
Direct Debit Instalment Payments Per Calendar Month
 + Vat      or Inclusive Vat

Features

  • Choose from a 2 or 3 year lease term.
  • Have the option to exchange at either 24months on a 2 year contract, or, the 24 month OR 36 month point on a 3 year contract.
  • HP and non-HP products,software and services can be financed.
  • Minimum order size £1000.00
  • End of term options:
    Return equipment
    Extend the rental
Exchange Lease

The two or three year finance offering from HP International Bank designed to give end users the freedom to exchange equipment and keep their costs low.
Payments
Monthly in advance. the HP Purchase Pack agreement length is three years.

Tax
Because you have the ultimate ownership of the equipment financed, you may claim capital allowances against your Corporation Tax liability . In addition, the interest component of HP Purchase Pack rentals is normally a tax deductible expense.

VAT
 VAT on the total rental term is payable at the inception of the contract. This is normally reclaimable if you are making taxable supplies for VAT purposes.

End of Term Options
Return equipment of HP Technology Finance or take title to the equipment upon payment of a nominal ‘transfer of title’ of £25 to HP Technology Finance.
Minimum order size is £1000.00

Benefits

Protection from obsolescence and access to latest technology. Conversation of cash for precious core business activities. Predictability of payment streams-no surprise
Spread the cost of ownership over a 3 year period
Fixed monthly payments make budgeting and forecasting easier and provide a hedge against inflation
HP and non-HP products,software and services can be financed.
Corporation tax relief may be obtained for capital and interest.
You will own the equipment at the end of the contract term.
Minimum order size £1000.00

Residual Value Table for Equipment Returned to Hewlett-Packard
Category24 Month36 Month
HP Computer Hardware15%8%
Non-HP Computer Hardware11% 6%
Software / intangibles0%0%

Hewlett Packard Financial Services
Your Questions Answered For Lease Rental
Q - Why should we rent our equipment from Hewlett Packard Financial Services
A - By renting your equipment you have no large capital outlay allowing you to havethe equipment that you require now even though you may not have the budget or alternatively allowing you to use your capital budget elsewhere in yourestablishment .
Q - How will the rental payments be made?
A - Payments can be arranged by Direct Debit payable monthly quarterly, Annually.
Q - What happens at the end of the rental term?

A - You have four options:

1. Continue to lease the equipment subject to status.
2. We can arrange for disposal of you equipment.
3. Upgrade the equipment on you lease. Subject to status
4. Providing we obtain title to the equipment on your lease, we can provide an infinite rental for a nominal fee based it's market value at that time. Subject to full compliance with the terms and conditions on your leasing documents.

Q - What about warranties and servicing?
A - By taking out a rental option you can still arrange your warranties and servicing with Hewlett Packard to cover you throughout the duration of the rental.
Q - Can insurance be arranged on our equipment being rented?
A - Yes insurance can be added to you rental payments to give you the piece of mind
required.
Q - Are there any hidden charges in the agreement?
A - The only charges will be the agreed rental and a bank administration charge of £150 payable on the first payment.
Q - Who owns the equipment?
A - The equipment is owned by the agreed leasing company throughout the renta lterm.
Q - How much flexibility does a rental agreement provide?
A - You have far greater flexibility with a rental because you have the ability to upgrade your equipment as the need arises without a large capital outlay. You can also co terminate your agreement so all the payments would be issued at the same time to ease your internal admin and accounts.

MASTER LEASE

In essence, the Master Lease agreement determines a particular set of terms and conditions which are negotiated with you at the outset - very similar to the conditions on the reverse of our current documentation. As and when you wish to order a piece of equipment, you will complete the tailor made order form which gives reference to the Master Lease agreement and details of the equipment with their agreed costs. This may be facilitated on your own purchase orders.

The Master Lease agreement makes the process of ordering equipment far more convenient and will shorten the purchasing cycle.

For a guideline the Master Lease is applicable to those customers who are interested in acquiring approximately £50,000 - £1,000,000 worth of equipment, and also warrants this amount of credit. I have summarised below the main points of the Master Lease agreement, an example of which is attached:

Firstly the terms of the agreement are pre-negotiated with you. The details that are confirmed at this stage and form part of the agreement include:

- An Order Form (see schedule A) which details all the information that must be included to instigate a separate lease for each order.

- Details of all types of equipment available and the payments in respect of their rental and any maintenance (schedule to be attached to Master Lease agreement).

- The Terms & Conditions of Hire are specified at this point and the Order Form gives reference to the Master Lease agreement.

- Each time a purchase unit of your company wishes to lease as an additional piece of equipment, an order form is completed and signed, and a separate lease will be instigated in the normal way. This includes the ability to upgrade equipment in the usual way and add to existing equipment on a Co-terminus basis.

- The benefits of convenience of order, ease of supply and the assurance of using an approved computer supplier will produce time and cost savings for you.


Should you have any further queries or questions, please do not hesitate to contact
Hewlett Packard Financial Services Lease Support Desk on 0800 068 1989.