Introduction
We want to help you find a suitable asset finance product that meets your needs. This document sets out the key factors you should consider. Please give particular consideration to our role and our charges.
Authorisation
Credo Capital Finance Limited are authorised and regulated by the Financial Conduct Authority, FRN: 670362. Credo Capital Finance Limited are authorised by the FCA as both a Lender and a Credit Broker. This can be verified on the FCA Register by clicking here.
Not all finance benefits from regulatory protections under the Financial Conduct Authorities Rules and Guidance. Some agreements will be considered Un-regulated, these agreements are for Limited Companies, Partnerships of more than 3 and some other incorporated entities. If you are unsure whether your agreement will be regulated or not please let us know.
Our Role
We are a finance lender and will always consider your application carefully, however, we also work with a panel of finance lenders as sometimes we choose not to perform the role of your credit broker to ensure your application is accepted at a competitive rate. We work with a wide panel of lenders, but we do not have access to every lender in the market. We do not provide impartial financial advice about the suitability of the finance product being offered; you should consider what alternative finance options are available before signing the agreement.
Once we have found a potentially suitable arrangement, we will present the lender’s agreement to you which we believe achieves the appropriate customer outcome for you based on the information you have provided us with, however, this is not an advised service. It is important that you read the whole document carefully. We will discuss the agreement with you and will be happy to explain the terms of the agreement but if you have any questions in relation to the terms and conditions, please refer them to your accountant or financial advisor.
Our Charges
When we are the lender for your finance agreement, we will earn money from your repayments in the form of interest or hiring charges.
When we act as your credit broker, we do not charge you a fee for our broker services, whichever lender we introduce you to, we will receive commission from. Different lenders pay different commission amounts based on different commission models and different interest amounts. If you were introduced to us by a third party, we may pay them a share of our commission for their work in processing your application. The exact amount of commission will be disclosed once we know the figure, which will be before you sign your agreement.
For transparency we work with the following commission models: either a fixed fee or fixed rate of commission, a percentage of the amount you borrow or rate for risk (this is based on the risk profile of the proposal). Under some commission models that we operate under, the more that you pay to the lender the more that we may receive by way of commission.
Do I need Asset Finance?
The main options for financing newly acquired asset are to purchase the asset outright for cash, arrange a bank loan, rent for a short period (typically less than one year), or take out an asset finance agreement. A lender providing asset finance will purchase the asset from the supplier you have selected, at the price you have negotiated. You will then hire or lease the asset from the lender. In deciding which option to select, relevant factors may include whether you have the cash to buy outright, how long you need the asset for together with the relative costs of the different options.
What types of lending are there?
Most asset finance arrangements involve paying a deposit and then monthly payments. One key difference between products is what happens at the end of the agreement and who gets title the asset.
Hire Purchase: Is a finance agreement which is secured against an asset where title only passes to the borrower when the agreement has ended and all monthly instalments and the option to purchase fee have been paid in full. Click here for more information.
Operating Lease: Is a contract that allows for the use of an asset but does not convey rights of ownership of the asset. Click here for more information.
Lease: Is a finance agreement which is secured against an asset where at the end of the agreement, there are a number of options that may be available to you depending on the type of lease that you have entered into. This may include extending the lease term, returning the asset to the lender, receiving a refund of sales proceeds upon the sale of the asset by the lessor or upgrading the asset via a new agreement. There is no intent for asset title to pass from the lessor to the lessee with a lease at the end of the lease period. Click here for more information.
Loan: Is an agreement to borrow a defined amount on the basis the loan is to be fully repaid within a set time period. Click here for more information.
Conditional Sale: Is very similar to Hire Purchase but when you have made all the payments under the agreement, you automatically take ownership of the asset. Click here for more information.
Personal Contract Purchase/ Business Contract Purchase: This product is usually only available to finance vehicles. At the end of the agreement there is an optional large final payment to purchase the vehicle and option to purchase fee. Alternatively, you can return the vehicle to the lender, The final payment is dependent on your estimated annual mileage. Click here for more information.
In deciding which option to select, relevant factors may include how long you expect to use the asset for and the income or corporation tax, VAT and accounting treatment of the product. Click here for more information.
Suitability of Asset Finance?
Asset finance may not be suitable in certain circumstances. You should be aware that you will have to continue to pay for the asset for the agreed period even if you no longer need the asset or it cannot be used. If you change the asset during the agreed minimum rental period, this could lead to higher charges. Asset finance is unlikely to be suitable if you are not sure if you will need the asset for the minimum contract period. Asset finance is unlikely to be suitable if you are not sure the asset will be maintained and kept in a useable condition for the minimum contract period.
Pre-Contract Credit Information
For regulated customers your repayment schedule, repayment amounts, and the total amount payable are detailed in the Pre-Contract Credit Information. You will be asked to read the Pre-Contract Credit Information and you can take this away to seek further explanations where required. Failure to make the payments as they fall due will mean that you have broken the terms of the agreement and could result in a lender taking further action against you. This may include repossession of the goods and or obtaining a charge against a property you own. You may also incur additional costs and it could make it difficult for you to obtain credit. The Pre- Contract Credit Information will also detail your right to withdraw and early settlement information.
Insurance
A condition of taking out an asset finance agreement is that the asset must be insured. Some lenders may apply a suitable insurance policy to their asset, these lenders may receive a fee for this. Therefore, please make sure you read any letters regarding insurance that maybe received directly from the lenders chosen insurer and act accordingly to avoid duplication.
Data Protection
At the beginning of your application, Credo Capital Finance Limited will have gained your consent to complete a credit search.
To approve your application Credo Capital Finance Limited and/or our lenders will supply your personal information to Credit Reference Agencies and the Credit Reference Agencies (CRAs) will share information about you, such as your financial history. Credo Capital Finance Limited or the lenders do this to assess credit worthiness, product suitability, check your identity, manage your account, trace, and recover debts and prevent criminal activity. The lenders will continue to exchange information with the CRAs on an ongoing basis, including about your settled accounts and any debts not fully repaid on time. CRAs will share your information with other organisations. Your data will also be linked to the data of your spouse, any joint applicants, or other financial associates. The personal information you have supplied may also be shared with fraud prevention agencies who will use it to prevent fraud and money-laundering and verify your identity. If fraud is detected, you could be refused certain services, finance or employment. We only retain personal data for the purposes for which it is collected and for a reasonable period thereafter where there is a legitimate business need or legal obligation to do so. For detail of our current retention policy, email [email protected]
Credo Capital Finance Limited’s privacy notice can be found with the following link: www.credoassetfinance.com/privacy-policy
CIFAS Privacy notice can be found on the following link https://www.cifas.org.uk/privacy-notice
Credo Capital Finance Limited are registered with the ICO, Reference Number Z2063154.
Customers Duty
We rely on the customer for the accuracy of statements, information and representations made to ourselves by the customer. Please ensure all the information you provide to us is fully up to date, accurate, complete, and does not omit anything which could be material to your application.
Ability to pay
We and other lenders will assess your ability to pay. You should make us aware of any future changes that may affect your ability to make the payments detailed in your agreement. These changes will be communicated to the creditors lending unit for further consideration
Heath issues
If you have any health issues that could affect your ability to fully understand (the product) or commitment you are entering into, you should consider very carefully whether you need further time to consider this application or whether you would like a family member or friend to help you to make your decision. Please tell us if this is the case.
Missed Payments
Missed payments could possibly result in the risk of losing the asset which is the subject of the Finance Agreement and the loss this could entail. The repossession can take place without a court order. The repossession may not clear the debt owed.
Complaints Procedure
If you have a complaint about our service, please contact Credo Capital Finance Limited on 01603 703180 or [email protected].
We will acknowledge your complaint and aim to resolve the complaint as quickly as possible. We aim to provide a final response to all complaints within 8 weeks. Our complaints policy is available by clicking the link www.credoassetfinance.com/complaints
If you are unhappy with the way your complaint has been handled you may be able to refer your complaint to the Financial Ombudsman Service (http://www.financial-ombudsman.org.uk/), telephone number: 0800 023 4567. We will inform you in our final response if you can refer your complaint to the Financial Ombudsman Service.
For complaints that do not fall under the Financial Ombudsman Service’s jurisdiction, where we are unable to resolve the complaint to your satisfaction the Finance and Leasing Association’s code sets out the procedures which are available to you, including arbitration. We will provide details in our final response letter.
