Through our exclusive partnership with Buckingham Leasing we offer (subject to approval) the option of financing your sports facility through a Hire Purchase Agreement.
Hire Purchase Agreements allow you to fund and build new sports facilities by spreading the cost of your investment over time, with low up-front costs, fixed repayments and competitive rates.
Read more about Hire Purchase Agreements below or get in touch for an informal chat about your project.
A Hire Purchase Agreement is a form of financing that is particularly beneficial to VAT registered organisations, who can claim back VAT at the outset.
With an Hire Purchase Agreement, you can refurbish or build a new sports facility in return for an agreed deposit and fixed regular payments over a period of 1-7 years. With deferred payment options and the ability to claim back VAT before paying it*, your new pitch can be constructed – and generating revenue through hire – before you even begin your repayments.
*If using an accrual accounting system
Working exclusively with S&C Slatter, Buckingham Finance offer highly competitive rates to fund the construction and refurbishment of sports pitches, playing courts and athletics tracks through Hire Purchase Agreements.
Utilising Hire Purchase, with a deposit of £120,000 (VAT) we we can install a brand new 3G all-weather sports pitch from as little as £8,900 per month (subject to site survey, conditions, and specifications). See our detailed example below.
Alongside Operating Leases and Finance Leases, perhaps the most obvious benefit of a Hire Purchase Agreement is the ability to spread the cost of your new sports facility over time.
With competitive rate fixed repayments and low-deposit options, this means you’ll only ever layout a fraction of the full asset value in one hit. This maximises cash flow and frees up capital, enabling you to invest in other areas of your organisation.
Hire purchase agreements also come with significant tax benefits. For VAT-registered organisations you can claim the VAT back straight away. In addition, for businesses adopting an accrual accounting policy you can defer the VAT by up to 3 months allowing you to claim the VAT back before having to pay it!
Many clients generate additional revenue for their organisation through the hire of their facilities. This means you can offset repayment costs through hire revenue, allowing your new or refurbished pitch, track or playing court to help pay for itself!
With the option of paying nothing for 12 months (if paying annually), this means you could have a years’ worth of revenue from your new facility before your repayment term even begins.
Below you’ll find a real-world quote provided to a football club who wished to finance the construction of their new 3G artificial turf pitch.
The example includes a 3-month deferred payment option with a deposit of VAT. The full balance is paid back in fixed monthly payments at a 2.8% flat rate over the remaining 7 years.
|3G Football Pitch Cost Breakdown|
|Cost Price (Net)||£600,000.00|
|Hire Purchase Agreement Example|
|Cash Deposit (VAT)||£120,000.00|
|81x Monthly Payments||£8,841.98|
*Figures quoted are correct at time of writing (March 21) and serve for illustrative purposes only. Contact us for a tailored quote.
In this example, with a significantly reduced up front cost, the club is able to build their new 3G Pitch before repayments begin.
After 3 months, repayments begin and the club will pay just under £8,900 a month for their new pitch over the duration of the agreement, with full ownership at the end of the term – and the ability to reclaim the VAT back from the outset (if VAT registered).
We can fund, construct and maintain a variety of sports facilities through our exclusive partnership with Buckingham Leasing.
Maintenance packages, as well as ancillary features such as floodlighting and fencing can also be included in the cost for a number of sports facilities, allowing you to spread the full project cost over the term of your agreement.
Hire Purchase agreements are recommended for the below organisations, if VAT registered:
*Elite sports clubs are defined as Premier League/Championship level (football) and equivalent levels across other sports. Due to the ongoing effects of the coronavirus pandemic, finance is not currently available to lower-league and amateur sports clubs as would usually be the case.
If your organisation is non-VAT registered, then a Finance Lease will be a more beneficial finance option, allowing you to spread the cost of VAT over the financing term.