Introduction

Coast want you to find an asset finance product that meets your needs. Our Terms of Business aim to provide you with information for you to consider before entering into an asset finance agreement.

Please read this document carefully. If you have any further questions about asset finance, you can contact Coast on 01425 203771

If you do enter into an agreement with Coast, Coast will ask you to confirm that:

– You were given these Terms of Business when you were introduced to Coast; and

– You have read them and had an opportunity to ask questions.

Who Is Coast?

Coast is an asset finance and leasing broker, and is a division of  Dawsongroup Finance Limited (a company incorporated and registered in Wales with company number 03345518) whose registered office is at Delaware Drive, Tongwell, Milton Keynes, Buckinghamshire, MK15 8JH

Dawsongroup Finance Limited t/as Coast (hereinafter ‘Coast’) provides UK businesses with asset finance so they can buy or hire equipment and vehicles for business purposes.

Customers come to Coast for finance through multiple routes. Some customers come to Coast directly whilst others are referred to Coast by suppliers or commercial partners, finally they can be Business to Business.

Dawsongroup Finance Limited has over 20 years’ experience of asset finance services. For more information about Coast, please go to www.coast-finance.co.uk

What Is Asset Finance?

Most businesses need to use assets such as equipment and vehicles to operate. The main options for financing the purchase and/or use of assets are:

– Purchase outright for cash, if you do not have this in the bank already you will need to find a way to raise it

– use a bank facility such as an overdraft, loan or other credit

– Rent the asset for a short period (usually less than one year)

– Take out an asset finance agreement.

In deciding which option is right for your business, you should think about:

– The type of asset that you need

–  Whether you have the money to buy the asset outright

– How long you will need the asset for

– Which option is most cost effective

– The tax, VAT and accounting treatment for each option to finance the purchase or hire of the asset

If you choose asset finance, it is up to you to find a supplier and negotiate for the supply of the asset in the same way as if you were buying it outright. You may also have to pay a contribution towards the purchase price. However, most (if not all) of that price will initially be covered by the funder. You will then make regular payments (usually monthly) over a fixed or minimum period (usually three or four years) in order to repay the funder together with their charges for providing the finance.

The key differences between the two standard asset finance products which Coast can arrange for you depend on what happens at the end of the agreement; in particular, who owns the assets. In simple terms, these products are:

A Lease Agreement

The funder will purchase the assets you have chosen from the supplier you have selected, and you will agree to hire them and pay rentals over the hire period. These rentals will typically be for the same amount.

During the hire period, you will have the right to keep and use the assets. You will have to insure, maintain and repair them and may need to replace them if they are stolen. However, you will never own the assets.

If you do not keep to the terms of the agreement, the funder can end the agreement and take back the assets and you will have to pay compensation to ensure that the funder is repaid in full.

There are a few different types of lease agreement. The hire period may be ‘fixed,’ or it may be a ‘minimum’ period which means that you can continue to make payments to keep and use the asset after the minimum period has ended if you want. Payments will stay the same during an extended period unless Coast have agreed a different amount. If Coast agree a different amount, Coast will let you know before the start of the extended hire period.

If you have agreed with a supplier that they (or a named third party) will provide ongoing maintenance for the asset in return for regular payments, Coast may be willing to collect those payments from you along with your rentals and pass them on to the maintenance provider. Coast do not provide maintenance and so any maintenance arrangements you make will be separate from your finance agreement and your obligation to pay rentals for the assets. Also, Coast is not responsible for the performance of those arrangements by the maintenance provider.

Once the hire period expires, the assets will need to be returned to the funder or sold to a third party. You may be entitled to a share of the sale proceeds if the funder has appointed you as its agent to sell the assets for them.

The type of lease agreement will depend on the terms agreed at the beginning and they will affect the cost payable by you overall. You will need to check the terms of any lease agreement you are offered carefully to make sure that you understand them.

Hire Purchase

Hire Purchase (also known as “HP”) is an agreement for the hire of assets with an option to purchase them once all the repayments have been paid.

You will need to pay regular repayments over the fixed hire period. These repayments may all be for the same amount, but sometimes a more substantial ‘balloon’ repayment may be due at the end of the hire period.

During the hire period, you will have the right to keep and use the assets. You will have to insure, maintain and repair the assets and may need to replace them if they are stolen. If you do not keep to the terms of the agreement, the funder can end the agreement and take back the assets and you will have to pay compensation to ensure that the funder is repaid in full.

However, unlike a lease, if you keep to the terms of the agreement you will be entitled to become the owner of the asset at the end of the hire period, after paying an option to purchase fee. This is usually only a small amount, but some HP agreements include a larger final optional repayment. Dawsongroup’s standard option to purchase fee is detailed in the Tariff of Charges below.

Is Asset Finance Suitable For Me?

For detailed guidance on whether asset finance is suitable for you in your current circumstances, you should speak to your accountant or other financial advisor. Coast is not a financial advisor.

Coast offers its customers standard asset finance products and ensures that asset finance is suitable for the customer; some basic indicators of unsuitability are set out below. However, all customers must decide for themselves if asset finance is suitable for them.

Asset finance usually involves payment of a fixed price over a fixed period. You need to be sure you can afford to pay all the payments that will become due and are able to meet the other terms of the agreement.

If you decide you no longer need the assets, or even if they cannot be used, you will still have to either continue paying for them during this period or settle the agreement early. Funders usually offer a small discount to reflect early payment, but this is usually only a small proportion of the outstanding balance. Also, if you decide to change the asset during the fixed period, this is likely to lead to higher charges.

Asset finance is unlikely to be suitable for you if:

– You do not know whether you can afford all the payments

–  You do not know whether you will need the assets for the fixed or minimum period

– The assets only have a short working life; or

– You are likely to want to change the assets during the fixed/minimum period.

For more help in deciding whether to select asset finance, contact the Government’s Business Support Service for finance advice (www.gov.uk/business-support-service/overview)

CCA Regulation

Asset finance agreements with incorporated bodies (limited companies, LLPs and larger partnerships) are not protected by the Consumer Credit Act (CCA).

Asset finance agreements with sole traders, partnerships with only 2 or 3 partners and/or unincorporated associations are protected by the CCA unless (i) the total credit provided, or total of rentals payable (including VAT), is more than £25,000; and (ii) the agreement is entered into wholly or predominantly for business purposes.

Asset finance agreements with a high net worth individual (HNWI) are subject to an optional exemption. Dawsongroup Finance does not enter into regulated agreements with individuals acting outside a business, trade or profession unless they are an HNWI, and are willing to opt out of CCA protection.

Even though such agreements would be outside CCA regulation:

– They would still be subject to the ‘unfair relationships’ provisions in s140A CCA; and

–  The HNWI would still be a ‘consumer’ for the purposes of relevant legislation, including the Consumer Rights Act 2015.

What Is Coast’s Role?

Coast acts as a broker, Coast are not providing you with financial advice. If one of the funders Coast works with is prepared to give you finance, Coast will explain to you the details of the products available and their terms. You should not treat this as advice or a recommendation about the suitability of the product for you.

There may be other funders and/or products available to you that offer different terms, and you should make your own independent enquiries about the alternatives before reaching any decision about whether the finance product offered is best for you.

Commission

It is usual in the finance industry for parties to receive a commission payment when they make an introduction which leads to a completed finance agreement. This payment is intended to reflect the time and effort involved, which can vary between different transactions.

Coast will not charge you a commission fee. If you choose to obtain finance from a funder Coast introduce you to, Coast will usually receive a commission payment from them. This will either be a fixed fee or a fixed percentage of the amount they fund.

Different funders Coast work with may pay Coast commission at different rates. The arrangements these funders have for the payment of commission will be taken into account when they set the finance rates which will be offered to the customers that Coast introduce to them.

If you have been introduced to Coast by a third party (such as the supplier you have chosen or an asset finance broker), Coast may pay them a commission. Whether or not Coast pay a commission to them will depend on the arrangements Coast have in place, but broadly :

– Coast usually does pay commission where you have been introduced to Coast by one of our commercial partners; but

– Coast usually does not pay commission where you have been introduced directly to Coast by a supplier.

If you decide to enter into a finance arrangement with Coast, or with a third party funder which Coast introduce to you, signing the finance agreement will function as confirmation that:

– You have not been given any advice or recommendation about the suitability of the terms offered to you; and

– Commission may be payable to Coast and/or by Coast as explained above.

The Application Process

Coast will keep you updated on the progress of your application for finance, but you can contact Coast at any time if you want an update. If Coast or one of our third party funders decline to provide funding Coast will tell you as soon as possible.

If Coast is unable to provide you with finance, Coast will contact you to discuss your options.

An application for finance may sometimes be declined on the basis of an automated scoring system. If this happens, Coast will tell you and you can ask for the decision to be reviewed by a person.

Complaints Resolution Procedures

Coast are committed to excellent customer service and hope that you do not need to complain, but Coast accept that sometimes things go wrong.

For all customers Coast try to respond to all complaints quickly and fairly and have a dedicated complaints handling team to support you with this process.

Coast will:

– Establish the reason for your complaint quickly

– Investigate your complaint thoroughly

– Respond to you quickly

– Put things right if Coast have got it wrong

Some customers have enhanced protections laid out by the Financial Conduct Authority when making a complaint, including the right to have your complaint considered by the Financial Ombudsman Service. You can find out if you are one of those customers by entering some information into the Financial Ombudsman Services (FOS) website: Who we can help (financial-ombudsman.org.uk) For those customers who are covered by these enhanced protections, our complaints resolution procedures meet the standards required and a copy of these procedures is available on request, but in short:

– Coast will try to acknowledge and resolve your complaint within 5 working days. However, there will be times when this is not be possible. In that case, Coast will try to resolve your complaint within eight weeks as required by the Financial Conduct Authority.

– If you are unhappy with the way Coast have resolved your complaint, you may have the right to refer your complaint to the FOS, free of charge. The FOS will be able to review your complaint subject to their eligibility criteria, but you must refer your complaint to them within six months of the date of our Final Response Letter.

The FOS can be contacted as below:

If you have a complaint about our service, please contact Coast:

By Post:

  • Address: Coast, Complaints Resolution Team, Unit 21, Headlands Business Park, Salisbury Road, Ringwood, Hampshire, BH24 3PB
  • Telephone: 01425 203771
  • Email: info@coast-finance.co.uk

Use Of Data And Protection

For details on how Coast use individuals’ personal data (including the directors and partners of businesses), or the data protection rights available to individuals, please see our Privacy Policy which can be found at privacy policy.

Credit Reference Agency

Coast currently use ‘Experian’ to conduct our credit searches. Their details are as follows:

Customer Support Centre, Experian Ltd, PO Box 8000, Nottingham, NG8 07W

If you have experienced problems obtaining credit, Coast recommend you request a copy of your credit file.

If you would like a copy of your credit report, please visit: Statutory Credit Report | Experian. You can apply for your credit report online or by completing Experian’s Statutory Credit Report Application Form and returning by post to the address shown above.

Charges

Should you be provided a credit approval through one of Coasts third party funders, there may be additional charges included, such as documentation fees or annual fees. These charges will be confirmed to you by a Coast representative at point of confirmation of approval. If you have any queries regarding these charges, please contact our Customer Service Team on 01425 203771.