| The implementation
of the Prudential Code has introduced the need for local authorities
to evaluate many more funding options.
When appointing external advisors, local authorities traditionally
have divorced the general debt and investment functions from the
lease procurement and asset management functions. The Arlingclose
Asset Finance Advisory Service encompasses a broader review of
options more relevant and sympathetic to the Prudential Code.
It is a supplementary service to the Arlingclose GO4OPTIONS Options
Appraisal software package and includes:
- Finance Leasing
- Operating Leasing
- Hire Purchase
- Market Loans
- PWLB Loans
- Contract Hire
- Rental Agreements
- Cash
The bedrock of the service is that no one product is favoured,
but all are evaluated with equal consideration. Each proposal
is compared and evaluated taking into account factors such as:
- Individual product discounted cash flows
- asset depreciation
- residual values
- VAT
- Sensitivity to factors such as period usage and interest rate
changes
It is a service which provides assistance and professional interpretation
in appraising various funding options. It involves the qualitative
assessment of the financial results and reports generated by GO4OPTIONS
software.
Included in this service is leasing and other asset finance advice
which allows a local authority to procure and evaluate asset finance
quotes without the additional cost of appointing a specific lease
advisor/broker/consultant. It includes a full advisory service
in asset finance procurement including:
- preparing tender documentation
- preparing a tender list of funders
- evaluation of tender responses including quantitative and
qualitative factors
- documentation issues and templates
- advice on existing leases and lease portfolios
- early terminations
- asset write offs/insurance issues
It is a service covered by a single annual fee. No commissions
are paid for the choice of any one particular product. The efforts
in procuring quotes for products such as leasing are not wasted
or subsequently charged for through non-utilisation fees.
This service is distinct from the lease advisory and tender management
services offered by mainstream providers which purely focus on
lease procurement. It is driven by the appraisal of funding options,
one of which includes the historically complex and time consuming
issue of leasing. This service brings leasing into the full treasury
management function where it should always have been. |
