FIRST Citizen Finance DAC (“First Citizen”) started trading in late 2012 and is now one of the fastest growing financial services companies in the Republic of Ireland. Their people, products and IT systems all work in harmony to ensure that they provide a “best in class” service proposition to their suppliers, dealers and borrowers.

Bespoke solutions for finance requirements can be developed and this company is committed to providing real value, a range of product options and excellent customer service to help customers run their business more efficiently.

1 What can I buy on finance?

At First Citizen we understand the challenges of modern day business. So, whether you want to finance a tractor or trailer, bus or forklift or any other type of equipment, we can tailor-make a finance solution for you.

First Citizen provide finance for assets/equipment in the sectors listed below. Depending on the type and age of the asset, credit criteria and terms and conditions may vary.

Sectors: Agri (e.g. tractors and trailers); transport and logistics (e.g. trucks and buses); medical (e.g. diagnostic equipment and veterinary equipment); material handling and construction (e.g. forklifts and yellow plant); printing equipment (e.g. printing equipment and photocopiers); manufacturing, engineering and retail (e.g. motor garage equipment and hydraulic lifts); renewable energy (e.g. LED lighting and solar/pv roof or ground equipment; and technology/packaging (e.g. PCs and servers, mainframes).

2 How does financing work?

Finance is available over any term between two and seven years depending on the type and age of the asset being financed. First Citizen will provide up to 90% LTV (Loan To Value) of the asset, subject to existing credit criteria. Other terms and conditions may apply.

3 What are the benefits of hire purchase?

If you want to purchase equipment outright, our non-consumer hire purchase agreement is the flexible and cost-effective alternative to overdrafts or term loans. The asset becomes your property when you have paid the final instalment and the completion fee due under the agreement. Some features and benefits of hire purchase are as follows:

  • Fixed payments over a fixed term
  • Payments which you can time to suit the income pattern of your farm enterprise or agri business
  • The VAT on the purchase price can be reclaimed immediately after the transaction, provided you are VAT registered
  • Interest charges can be offset against taxable profits
  • Flexible deposit payable (minimum 10%)
  • Claim back your capital allowance costs on the cost of asset

    • 4 What are the benefits of leasing equipment?

    Leasing is an efficient way of paying for the use of equipment over a set period of time. The asset is leased to you at a fixed rental for a fixed term at a fixed rate. We own the asset and charge you for the use of it until the final rental is paid. At the end of the rental period you will have the option to enter into a secondary lease period, purchase the equipment for a nominal fee or trade it in as a deposit against new equipment. Some other benefits of leasing are:

  • Initial Capital Outlay is minimised, thus preserving your cashflow
  • Leasing rentals may qualify for tax deductions
  • You get to use the equipment just as if you owned it
  • Flexible repayment terms
  • The VAT element of the rental payment can be reclaimed in your VAT returns provided a) you are VAT registered and b) it’s a qualifying asset

    • 5 What happens if the equipment is damaged during the lease period?

    It is the responsibility of the lessee to keep the asset in a good working condition. At the end of the rental period the lessee will have the option to enter into a secondary lease period, purchase the equipment for a nominal fee or trade it in as a deposit against new equipment.

    6 How long are the finance terms you offer?

    Both hire purchase and leasing agreements are available to finance new and second-hand agri assets: - Only assets purchased from a First Citizen Agri Finance approved agri dealer or distributor are eligible for finance. Payment terms vary from two to seven years, depending on the type and age of asset being financed. In the case of light commercial vehicles (LCVs) and jeeps, finance is provided up to a maximum term of five years and must be sourced through an approved SIMI or franchised motor dealer in the Republic of Ireland.

    7 What are the benefits of purchasing equipment using finance as opposed to taking out a long or short term bank loan?

    Our asset finance agreements have a fixed interest rate to help you budget and manage your cash flow. For our agri customers, our product offering can accommodate monthly, quarterly, half-yearly or yearly payments depending on your particular circumstances and income situation.

    8. What is the most cost effective way of buying new machinery?

    Asset finance is a good option for businesses to consider as it allows them to manage their cash flow outlays whilst fulfilling their capital expenditure requirements.