First hand
experience has taught us that successful funding of assets involves
more than accepting submissions that offer the lowest primary
rental.
Successful funding and ongoing management of your asset portfolio
can reap year on year cost savings and maximise the utilisation
of health service assets. To ensure that the most appropriate
funding instrument is selected, the issues associated with each
and every financing arrangement have to be assessed and advised
on accordingly.
The evolution of asset finance in the NHS Healthcare sector has
grown steadily since 1993. There are now relatively few Trusts
that have not entered into an operating lease. This has given
most Trusts first hand experience of the complexity of asset finance
and given an appreciation that this is a specialist area of finance
requiring bespoke financial advice. The evolution of Foundation
Trusts has further developed demand for more varied financial
products and the associated need to review additional funding
options.
The Arlingclose Asset Finance Advisory Service encompasses a
broader review of options relevant and sympathetic to the health
service environment. It is a supplementary service to the Arlingclose
GO4OPTIONS Options Appraisal software package and includes:
- Finance Leasing
- Operating Leasing
- Hire Purchase
- Market Loans
- NHS Bank 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 Trusts to procure and evaluate asset finance quotes
without the additional cost of appointing a specific lease advisor,
broker or 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
- Advise on existing leases and lease portfolios
- Early terminations
- Asset write offs/insurance issues
- Lease restructuring
- Equipment finance auditing
It covers issues such as SSAP21 and FRS5, whole life costs through
analysis of primary rentals, indicative extension rentals (with
or without a capping device) and fixing instruments (such as the
changes in money costs in relation to equipment lead times).
The Arlingclose Asset Finance Advisory Service empowers you to
make better informed funding decisions. |