Vendor finance

For many customers, funding your products using leasing can be a challenge. At Luna Finance, we understand this, which is why we offer bespoke vendor finance options and software to make it easy for your customers to buy from you.

Boost sales using our cutting edge technology

Our vendor finance solutions can help you boost sales and profits by making it simpler to close deals, generate business and increase repeat business opportunity.

It’s simple to become an approved vendor with Luna Finance and begin selling your equipment on finance with ease. As an approved vendor you will receive dedicated support from our account management team, allowing you to focus on closing the deal. You will also benefit from quick response times, high application success and a completely managed documentation process.

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Unsure on repayments? Try our Asset Finance Calculator

Why choose Luna Finance?

Luna Finance is a member of the NACFB and has a proven track record of sourcing and providing the best finance solutions for our partners and customers. With an established team that provides dedicated account management, we also have significant experience across many sectors. As a result, we ensure every proposal is treated individually to find the best finance solution for business continuity and success.

Cutting edge technology

As an approved vendor you will have access to our online proposal system. This allows you to get finance quotes on the go and transforms the quoting process. Above all, the system is quick and simple to use, provides instant quotes and lets you edit, submit and track your proposals.

Best practice

Our quick and easy application processes mean we can provide seamless funding solutions. We will manage each deal from start to finish, allowing you to concentrate on new business sales. We offer the benefits of high application success rates, competitive rates and a wide range of finance options.

Luna Finance is also authorised and regulated by the Financial Conduct Authority, which is extremely important to us and enforces our approach of best practice for the best outcome for you.

Boost sales

Our lifecycle management approach also means we can very quickly help you generate new business and boost sales. Moreover, we will identify opportunities for retaining your customers through equipment upgrades.

Regardless of your customers’ situation, Luna Finance is dedicated to sourcing a suitable finance solution, increasing your chance to close the deal.

Types of asset finance

Finance lease

A finance lease is where you rent an asset for the duration of its economic lifetime. The lender will own the asset and you will pay its full value in monthly instalments – with interest added – in order to use it. Unlike other finance options, with a finance lease, it’s unlikely you will need to put down a deposit.

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Benefits of a finance lease

  • Flexibility – Contract terms are tailored to suit your business requirements
  • High-value assets – That you otherwise might not be able to afford
  • Fixed payments – Allows you to better manage your cash flow and budgets
  • Low/no upfront costs – Preserve business capital for other purposes
  • Tax efficient – Reclaim VAT on rentals

Contract hire

With contract hire, you will only pay the depreciation value of the asset, not the full amount. However, at the end of the contract, the asset should be worth the value agreed upon when the contract was taken out. This means there might be additional maintenance costs to consider.

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Benefits of contract hire

  • Full use of a high-value asset – Remove the burden of ownership
  • Improve cash-flow – Spread the costs over time
  • Stay ahead – Swap asset for a new option when the contract ends
  • No administration – This is handled by the leasing company as legal owners of the asset

Hire purchase (HP)

Also referred to as ‘HP’. The key difference with HP finance compared to leasing options is at the end of the agreement your business will have full ownership of the asset. You will pay for the asset in monthly instalments with added interest and will usually be required to put down a 10-20% deposit.

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Benefits of hire purchase (HP)

  • Flexible repayment time – Able to spread the cost over the assets lifetime
  • Post-contract options – Either purchase the asset when the contract is complete or return to the lender
  • High-value asset – Full use of products that your business might not be able to afford if paying in full
  • Tailored finance – Agreement is designed to your business requirements, cash flow and budgets
  • Tax advantages – Offset interest and charges against business profits

Lease purchase

This is a hire purchase agreement but an amount of capital (residual value) is offset until the contract ends. This reduces the monthly payments but you must settle the lump sum at the end of the term.

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Benefits of lease purchase

  • Lower monthly payments – As the residual value reduces the amount you pay each month
  • Flexible repayments – Able to choose a repayment plan that suits your business
  • High-value asset – Access to high-quality assets that may be too expensive otherwise
  • Frees up finance – More money remaining to use towards other business needs
  • Ownership – Once the balloon payment (residual value) has been paid, the asset is then yours

Operating lease

An operating lease is similar to a finance lease but the contract will run out sooner. This is because the lender expects the asset to have a resale value at the end of the agreement – known as the residual value.

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Benefits of an operating lease

  • Cost effective – Don’t need to use up your business capital to acquire essential assets
  • Reduced commitment – Full use of an asset without needing to purchase outright
  • Low risk finance – Maintenance and finance benefits stays with the leasing company
  • Flexibility – Agreement is tailored to your business needs, cash flow and budgets
  • Tax advantages – For VAT registered companies