Escrow Lease / Commercial Hire Purchase
Make progress payments by way of interim finance on equipment being constructed or installed over a period of months.
- The Lessee/Hirer enters into an Escrow agreement with the finance company for the construction period.
- The lender will make progress payments for the goods upon receipt of authorisation from the Lessee/Hirer (you).
- At completion and satisfactory handover to the Lessee or Hirer, your business enters into a standard Lease or Hire Purchase Agreement with the lender for a new term.
There may be tax benefits of claiming the rental payment. You need to discuss this with your accountant.
Why CPI Finance
Escrow is part of the bigger finance requirements of your business. CPI Finance reviews the whole need and matches it to a lender, that will follow through with the second stage of your needs.
“Escrow is a performance contract. You need to make sure the costs have all been allowed for and lock in a contract with the manufacturer / builder, so there are no surprises at the end. CPI Finance can work with you to look at other buffer solutions if needed”.