Finance Products & Loan Types

A loan type that individuals can use to finance various expenses, such as a car, boat or caravan. With these types of loans, consumers are required to make regular payments, including principal and interest, until the loan is paid off.

A financial product where a borrower purchases an asset and the lender provides a loan secured by a mortgage over the asset. The borrower owns the asset from the start of the loan and can claim tax deductions for the interest and depreciation.

A finance arrangement where individuals or businesses pay in installments to purchase goods, such as a car or equipment. The buyer hires the goods from the seller until the final payment is made, at which point ownership is transferred. 

A type of finance agreement where the lessor purchases an asset on behalf of the lessee and leases it back to them for an agreed period. The lessee makes regular payments, and at end of term, the lessee may choose to buy the asset, return it, or enter into a new lease agreement.

A type of finance agreement where the lessor leases the asset to the lessee for a fixed period. The lessor retains ownership of the asset . The lessee pays regular rental payments, which are generally tax-deductible, and at the end of the lease term, the lessee returns the asset to the lessor. 

A company sells an asset it owns to a third party and then leases it back from the new owner. The company receives cash from the sale, which it can use for other purposes. The company then leases the asset back from the new owner, making regular payments for the agreed finance term.

An agreement between an employee, their employer, and a finance company whereby the employer agrees to make lease repayments on behalf of their employee. Contributions are made from pre-tax salary, which reduces taxable income. 

Businesses use their outstanding invoices as collateral to receive short-term funding. The lender advances a percentage of the invoice value, and then collects payment from the customer when the invoice is due.   Invoice finance may also be known as debtor finance.

A flexible type of loan where a lender approves a maximum amount of credit that a borrower can access on an as-needed basis. The borrower can draw from the line of credit at any time, up to the approved limit, and only pays interest on the amount borrowed.