Financing Cycle2Work

Once your company has made the decision to implement a Cycle2Work scheme, you need to decide how to finance it. You have a choice of either buying the equipment outright using cash or arranging a flexible finance solution.

Outright purchase has a clear cost implication, which may impact on cashflow. Because of this, around 50% of organisations choose not to acquire the equipment using their cash resources - they prefer to lease through a third party finance company.

The reasons why an organisation may lease can include:

• Good for cashflow
  Leasing avoids the need to constrain your cashflow, because you pay over time, in monthly instalments.
• Cash neutral
  Your monthly commitments will equal the amount you're saving in salary sacrifices from employees who have signed up to the scheme. It's a financial arrangement that perfectly suits the structure of Cycle2Work, because it makes the scheme cash neutral for you from day one.
• Avoids need to tie up capital in an employee benefit
  Although Cycle2Work offers tax and productivity benefits for your organisation, it is, in essence, an employee benefit. Financing this benefit from your company's own capital reserves may tie up resources that could be otherwise used to invest in your business.
• Easy to set up and manage
  One of the key benefits in the Cycle2Work process is that your provider does all the hard work for you. This includes the arrangement of the finance, and Halfords has worked with many finance providers over the years. We are able to work with your own preferred provider, or can point you in the direction of firms that specialise in dealing with issuing finance for Cycle2Work.

Applying for finance via Halfords is easy. We will forward your details to a finance provider,or alternatively you may wish to source your own finance provision and advise us of your borrowing rate.