Black Horse 
Fleet Finance

Black Horse Fleet Finance provides finance to Contract Hire and Daily Rental Operators, and for Employee Car Ownership Schemes. Funding can be used to purchase and sub-hire vehicles, including cars and, light and heavy commercial vehicles.  


How It Works: 
The funding is normally secured against the vehicle purchased.  
The Operator would normally pay the contracted rentals, together with any Residual Value or Balloon Payment, to Black Horse Fleet Finance and, is reponsible for the disposal of the vehicle.



Products Offered: 
Black Horse Fleet Finance offers the following products: 
• Undisclosed Agency Agreement
• 
Hire Purchase and Lease Purchase
Finance Lease 
• Employee Car Ownership Scheme
Direct Contract Hire
Each product is outlined in more detail below.


What you need to know about Undisclosed Agency Agreement: 
• Funding for motor vehicles (new and used vehicles up to one year old) for contract hire operators which are placed on long term hire to business and public sector sub-hirers. 
Black Horse Fleet Finance is undisclosed to the ultimate sub-hirer.
• Black Horse Fleet Finance underwrites the sub-hirer liability and carries the rental risk throughout the agreement.
• The contract hire operator guarantees to buyback the vehicle at the end of the agreement.

What you need to know about Hire Purchase and Lease Purchase: 
• Funding that allows the Hirer to acquire and use a vehicle for a fixed period of time, usually between one and four years. 
• Ownership of the vehicle will pass to the Hirer following the final payment, provided all the terms of the agreement have been complied with.
   • Fixed rate:
      The interest rate is set at the outset of the agreement and is fixed for the period of the agreement.
      Fixed repayments are paid either monthly or quarterly aiding budgeting and optimising cash flow.
   • Variable rate:
      Repayments are paid monthly or quarterly. Repayments include fixed capital amount and interest that is charged on the outstanding  balance.
      Interest is charged at a fixed margin over a variable benchmark.
There is the option of a balloon payment structure on Fixed Rate  and Variable Rate agreements. 


What you need to know about Finance Lease: 
•  The repayments are calculated on the cost of the vehicle (excluding VAT) based on the repayment period and profile.
•  Ability to reclaim 50% of the VAT on the finance element for cars and up to 100% for commercial vehicles.  
•  Funding that allows the Hirer to acquire and use a vehicle for a fixed period of time, usually between one and four years.
•  Fixed repayments paid either monthly or quarterly.
•  Ability to extend the lease agreement for a small annual rental that is detailed in the agreement. 
•  At the end of the rental period, the Hirer sells the vehicles to an independent third party, receiving up to 100% of the sales proceeds. 
There is the option of a balloon payment structure on Finance Lease agreements. 

What you need to know about Employee Car Ownership Scheme (Employer Approved Guaranteed Loan Employee Scheme): 
•  Funding for Employee Car Schemes with Black Horse Manufacturer Partners and franchised dealer groups.
•  T
ax efficient method of delivering a car benefit to employees.
•  The product can be: 
    •  Structured to provide the same benefit as a company car or, 
    •  Varied to suit the objectives of the organisation
.
•  There are potential company car tax and national insurance savings for the employers and employees
•  The employer, and any other intermediary involved, is:
    •  Required to be FCA regulated and have a credit broking permission 
    •  Responsible for obtaining HMRC approval to the scheme.


What you need to know about Direct Contract Hire: 
•  Funding for motor vehicles (new and used vehicles up to one year old) for contract hire operators which are placed on long term hire to business and public sector sub-hirers. 
• The hirer is introduced to Black Horse Fleet Finance by the contrct hire company.
• Black Horse Fleet Finance underwrites the Hirer liability and carries the rental risk throughout the agreement.
• The contract hire operator guarantees to buyback the vehicle at the end of the agreement.
• The hirer or end user has a direct relationship with  Black Horse.



Benefits of Black Horse Fleet Finance: 
•  Structured fleet funding to enable Operators to manage and optimise their cashflow. 
•  Automated new business process resulting in:
    •  improved customer experience and
    •  increased efficiency
•  Transparent pricing with no hidden costs.
•  Variety of flexible products that can meet the Operator’s or Hirer's needs. 
•  In respect of the Undisclosed Agency Agreement and Direct Contract Hire products, Black Horse Fleet Finance underwrites the end user liability in the event of default.

Tax and accounting treatment can vary in different circumstances and for different products and agreements.  
​The Operator or Hirer is responsible for obtaining their own professional tax, accounting, legal and any other relevant advice.